I am whizzing through the Austrian countryside towards Vienna Airport on a packed train to get a flight back to Dublin. The efficiency of this place is extraordinary — as too is the male Austrian weakness for the hats with large luxuriant feathers sticking out of them!
Silly as it sounds, it is actually quite funny to see grown men prancing around with a veritable peacock’s tail growing out of their felt caps. But that’s what European culture is all about — the evident, wonderful and cherished differences between all the countries.
Here in Austria, the European-wide ban on smoking in public has not yet been introduced. As a result, the cavernous cafes serving delicious milky coffee with artery-threatening Apfelscrudel and cream, are a haze of thick cigar smoke.
As well as the smoke, the other thing that strikes you in Austria is that the country is so old. There are precious few children, teenagers or even young adults anywhere, but the streets are full of pensioners.
It feels both old and old fashioned and yet, the freedom to smoke seems stolidly obstinate and idiosyncratic. Above all, sitting in cafes, smoking — like hats with feather — is all part of a national culture.
Increasingly, Europe’s economies are being seen through the kaleidoscope of culture. The differences are no longer only religious as they were a hundred odd years ago.
Back then — and to widespread acceptance — Max Weber the German anthropologist was the first to make the point that economics could be cultural — or at least you can’t look at economics independent of culture.
He found — based on extremely detailed research of the professions and occupations in selected towns in Germany — that those registered as Protestants tended to work hard, save more and be more commercially successful.
Today in Europe it seems that there is a return to a form of Weberian selection. There are biases (barely hidden) in the financial press and financial circles about innate Latin laziness, Irish fecklessness and Greek corruption.
However, today in deeply Catholic Austria, the idea that the Catholics are uniquely lazy and indolent and the Protestants parsimonious doesn’t wash.
But the distinctions are between a core Europe of older, exporting countries that export machines and capital and a peripheral Europe of younger countries, that have weakened banking sectors and significant debts.
The Austrians are not too happy about this split because it means that ultimately they will pay the bill. However, their bile is not reserved for the citizens of the peripheral countries, but the banks and political elites of their own.
The news in all the papers here today is of the ongoing crisis in Europe’s debt markets. The idea that Japan and China are now actively buying the debt of some EU countries to calm the crisis is not going down well in Austria’s ‘Der Standard’ — the local paper. A headline in the financial pages this week read: “Der Fall Portugal wird zum Deja-vu fur de Eurozone” — the fall of Portugal provokes a sense of deja vu for the euro.
The piece cites the domino process, which started in Greece, extended to Ireland and now afflicts Portugal and, perhaps a bit surprisingly for those who don’t know the numbers, Belgium.
‘Der Standard’ goes on to highlight the fact that in a recent survey of the 10 most likely states to default, five were EU members of which four were in the euro — and Ireland was up there along with Greece.
My neighbour here on the train works for an Austrian company that makes big machines for railway tracks. They are a type of spirit level for tracks, making sure that the tracks are maintained and don’t warp. Now 30pc of his business is in China and that’s where he is focused.
When asked about the euro, he replied that it was and still is a bad idea, because of cultural differences, which he was keen to highlight. He said Austria is not Greece or Ireland or even Belgium but now Austria’s future was tied via the euro to these countries.
But on the other hand, as an Austrian exporter, like many German exporters, he explained that at least the crisis prevents the currency from rising. The weak euro — a direct consequence of the debt crisis — was helping him remain competitive against the rest of the world.
He suggested that if the Austrian and the Germans had their own currency, they would have currencies which would have increased dramatically in value in the past years. Therefore, as an exporter, he wasn’t that phased by the debt crisis which he believed would only be solved by mass debt restructuring, defaults and creditors paying.
When asked what about the Austrian banks who had lent to banks in Ireland, Portugal and Spain that might lose out in a default situation, he was dismissive.
“Screw them. They lent to bad companies. Why didn’t they do their due diligence. Have they never heard the expression buyer beware? If I lent to a bad supplier would you pay for my stupidity?”
This story displays the complexity of the entire euro debt and credit crisis, which is getting worse by the day. The citizens of the likes of Austria do not willingly want to pay for countries like Ireland but they equally understand that Ireland is not being bailed out but the banks that lent to Irish banks are being saved from the implication of their own greed.
What is going on at the moment is nothing more than a titanic struggle between the interests of the citizens of Europe and the interests of the finance industry in Europe. It is one the citizens must win. Otherwise Europe will be turned from a democracy — where broadly speaking economic policy is framed with the interests of the average citizen in mind, to a bankocracy — where economic policy is driven exclusively for the interest of the banks.
Looking at the stolid burghers of Vienna yesterday and mindful of their own troubled history, my money is on the citizens, not the banks.
I hope it was Apfelstrudel they were eating.. That Apfelscrudel stuff will kill you!
Having lived and worked in Germany and Austria for a combined 4 years, your article rings true.
However, I am not so sure I would put all my money on the citizens… *banks* will have their say somewhere along the line…
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[…] This post was mentioned on Twitter by Adrian Weckler and others. Adrian Weckler said: New word of the week RT @davidmcw: New on the site: Citizens must fight rise of European bankocracy http://dlvr.it/DBVjF […]
Excuse my cynicism, but don’t we already live in a bankocracy?
We can keep on exchanging our hard labour for worthless ECB paper and the slow painful destruction of our aspirations or we can detach and start something new. Starting with a society with regulations that actually protect people instead of raping their every interest.
We need to take the guarantee away from banks and give it back to citizens.
Plutocracy is what we are living in. Citizens of Europe versus the Banks and EU Governments. Irelands fight so far all of one Cement truck one mass demonstration an election possibly in March an excellent call for a referendum by our host. Some other commentators today are very pessimistic for 2011 predictions of “victory” for the citizens at a cost of no financial system. http://ourfiniteworld.com/2011/01/06/the-oil-employment-link-part-2-looking-at-more-detail-underlying-history-chanels-prophets-of-do
http://theautomaticearth.blogspot.com/
cbweb, I hope that you’re not one of these people who say one thing and then they go away and do the exact opposite when the time comes? For example, saying that you’re not going to vote for FF in the coming election if interviewed by some pollsters and then go into the polling booth and vote for them??? Fianna Fail and the Greens along with the bankers, speculators, developers et al have brought this country to it’s knees. Do you want more of the same? I certainly don’t and the majority of the citizens of this country don’t either!!!… Read more »
Sorry David, my money is on the banks. As long as the Central Banks of the world are controlled by private interests who have the power to create money at will, lend it to puppet governments at high interest rates and manage to get the citizens of the world to work harder for less, I’m afraid they’re winning. Don’t see this situation changing anytime soon.
Let’s get Bono and Bob Geldof to push for a debt amnesty for us all. They could ask these financial institutions to wipe the slate clean.
“Europe will be turned from a democracy – where broadly speaking economic policy is framed with the interests of the average citizen in mind, to a bankocracy – where economic policy is driven exclusively for the interest of the bank” Well said David McWilliams and about time too. Your heart is in the right place and your mind is focussing on the real problem now. Only one problem though – this has already happened. The evidence is out there and you just need to look for it I can’t speak for Austria but here is tale from closer to home… Read more »
Are the book makers taking bets on the banks vs citizens?
I’ll bet in the banks.
Unless you get newsletters from truly good financial experts, the Irish situation in the US media is being presented as a bailout for Ireland rather than for what it is – a bailout for the European banks paid for by the Irish people. Why is this?
Again, a currency that a government can deflate, a weak currency, is good for the economic development of a country. The Euro is too strong a currency for Ireland.
It is interesting that Tim Pat Coogan has just suggested on television that it is time for emergency legislation to deal with the people who have brought about the condition of Ireland where it is run exclusively for the interest of the Banks. Such legislation was used when the State was threatened by subversion. This action combined with swapping the bank debt for equity is useful at the upper levels and will take a little time. Meanwhile we have to get on with helping one another day to day. Thus we we will rebuild our Country as the Germans did… Read more »
Austerity measures = Destruction of middle class wealth = Destruction of jobs = enforcement of cheap labour The financial fascists are successfully implementing a new feudalism that will sub consequently result in expansion of so called ‘state security’, or in other words, the manifestation of police states. This way, control can be maintained when resources necessary for our daily needs are ultimately inflated. this starts with energy and ends with bread, meat and milk. To achieve the expansion of police forces and change of legislation, intelligence methodologies are applied and fictive or even stage managed terror threads are the weapon… Read more »
David writes :”But that’s what European culture is all about – the evident, wonderful and cherished differences between all the countries.” That is a wonderful example on an oxymoron. “Culture is about differences”. —Coming to from the heart of European culture, where east meets west. The land of Mozart, Haydn, Schubert, Bruckner, Strauss, Mahler and Schoenberg. If culture is about differences then Austrian culture is not just European culture, it is world culture. Such a suggestion debases the true meaning of the word Culture. If Culture is about anything it is about discrimination. Austrians are discriminating people, who celebrate the… Read more »
David.
‘What is going on at the moment is nothing more than a titanic struggle between the interests of the citizens of Europe and the interests of the finance industry in Europe. It is one the citizens must win. Otherwise Europe will be turned from a democracy – where broadly speaking economic policy is framed with the interests of the average citizen in mind, to a bankocracy – where economic policy is driven exclusively for the interest of the banks.’ ~ Exactly.
Here is a new book out on this precise theme : http://www.youtube.com/watch?v=v5c42VCOX0w
What is going on at the moment is nothing more than a titanic struggle between the interests of the citizens of Europe and the interests of the finance industry in Europe. It is one the citizens must win. Otherwise Europe will be turned from a democracy – where broadly speaking economic policy is framed with the interests of the average citizen in mind, to a bankocracy – where economic policy is driven exclusively for the interest of the banks. Your milage may vary but In my view, it is the deliberately kickstarted war between the Dollar hegemony and ROW, Europe… Read more »
Global Risk Report 2011
Here: http://riskreport.weforum.org/
If you were reading Handelsblatt online on Wednesday 12th you would see a quote from the head of the German Bankers Federation saying – Banks are not responsible for the debt crisis, it is primarily a question of state deficits. This may be true for Portugal but not for Ireland, as we all know. I see nothing in the German business press in the las months acknowleding reckless lending by German banks to the likes of Anglo. Why are they not challenged ont his by our European politicians. The average German puts it down to waste etc. etc. so the… Read more »
Muscles Governor of California : Arnold Swartznegger , he came a long way from the yeodling hills of Austria to flex his political will and of course we must not forget Mary Poppins doing her au pair job in upper class Austria . We have Andersen Ireland a significant employer in west Limerick whoes control lies in Vienna . The architects that designed Vienna also did Sofia in Bulgaria on a smaller scale. Before the fall of communism Austria was the center of the Goulash Soup . Most Austrians eat the bread with salt caked on it . And of… Read more »
Dear Room :
Are we forgetting something ? Anglo Irish Bank owned a subsidiary in Austria before disposing of it in dubious cicumstances and afterwards changing its local name .
Deco – enlighten us please.
Biffo: “We’re not all here, Seanie, Alan Grey, a Director of The Central Bank, Gary McCann, ex Anglo director, just to talk about generating jobs and stimulating the economy.”
“As we dip into our prawn cocktails, let’s us four understand, everything must be done, to save Anglo, as we know, Anglo is crucial to our project, right Gary?”
“Can you, Alan, guarantee everything will be done to help Seanie here in his hour of need.”
Alan, “No problem at all!”
Biffo: “Good, now where’s me feckin pint….Oh shit, here comes CaoimhÃn…”
Slightly divergent, but, I believe Ireland (self financed till end of March and no need to go to the markets till then) took the first tranche of funding from the ECB yesterday. So either a) Lenny couldn’t add up again, b) some new cost is about to be “uncovered” (another black hole of anglo/AIB) or c) a political move by FF to tie Ireland into the bailout so that its harder to disengage, d) a slush fund for some green policies to keep them on board until the finance bill of secrecy is passed or e) all of the above.… Read more »
Did anyone see Martin Mansergh last night defending Brian Cowen’s discussions with Anglo Irish? He was positively squirming in his seat, the very embodiment of shiftiness. If the Austrians saw this naked display of deceit to cover the theft of their money they would say much more than screw the banks.
I see there’s been massive flooding in Austria. Did you see any of the damage when you were there?
Scene of a Slime
Inspector Ian Flemin & James Bond
Bond is the name and Bond is the Market
http://www.angloirishbank.com/Media-Centre/Press_Release_Archive/Sale_of_Austrian_Private_Banking_Subsidiary.html
Ok Ian join me in my bonded warehouse and lets fly :
http://www1.mpnrs.com/tracker/tracker2?adl=54&adc=3966&adm=8456&adr=18&ada=2&rid=1294919248250&turl=http://ad.adnet.de/adneti.php?s=2700&c=49908&t=1
Under the terms of the agreement with Anglo, Mr Drumm can seek the immediate return of certain documents, or request that they be destroyed, once his bankruptcy case is concluded.
http://www.independent.ie/national-news/drumm-deal-blocks-garda-access-to-sensitive-files-2494387.html
In the deserts its the little animals that are dangerous not the tall ones .So make sure you know who are the short people around him…….and particularly if they wear a beard.
David thank you for an interesting story in “Austrian Economics”. Basically it comes down to this – those who behave recklessly have to accept the consequences of the said recklessness. The state is intervening in the running of the economy to an excessive degree. Cowen, Lenihan, and Co are following instruction from Brussels. Austria played a very important part in the History if Europe in the between 1600 and 1815. Austria allied itself to Britain and prevented the Richeliue state of France, with it’s militarism, centralization, and mercantilism – from taking over Europe. Not once, but repeatedly. Austria also gave… Read more »
[…] Citizens must fight rise of European bankocracy | David McWilliams […]
The question that everybody is asking is this “What was Cowen doing, that day in Druid’s Glen with Seanie Fitz and Fintan Drury”. We know Cowen blanked his calendar that day. And we know he spent the day in the company of a hanful of close people. Well, I am prepared to guess. I reckon he had scheduled a massive drinking session the night before. Then he would have went Druid’s Glen, in the full knowledge that he was going to have a hangover, and he could hide out the day, get fresh air and maybe sober up. Basically, it… Read more »
It’s the beginning of the end for Cowen:
http://www.irishtimes.com/newspaper/breaking/2011/0113/breaking4.html?via=mr
By the way there is nothing unusual about all these businessmen and state officials playing golf together. Cowen is just one of many. Patrick Neary passed the comment that he stopped playing these golf games, in 2006. By that stage it no longer mattered. Until then he did it a lot. This is all in Senator Shane Ross’ book “The bankers”. Even more astoundingly, Fingers would present the Irish Nationwide cup to the winners of the annual golf tournament held for members of the Oireachtas. Yes, that is correct. Fingers sponsored the best golfer award in our elected assembly. And… Read more »
CWEB has made the point about. Is there any way we can get a move on Equity for Debt and make sure that a major reduction in the ECB / EU interest rate is achieved. And urgently can we address the matter referred to above namely into which black hole is the 5bn drawn down to be thrown. Surely we must be able to mount a constitutional challenge to this waste despite the presidential seal on the act
Once again the Irish are not doing as Brussels instructed. ‘respect my Irish friends…BUT’…..sting in the tail follows… http://www.breakingnews.ie/ireland/sarkozy-takes-aim-at-irelands-corporate-tax-rate-489191.html Oh, and we shall not forget. http://www.politics.ie/economy/140523-anglo-irish-bank-bondholders-revealed.html I think that he has gone to far at this stage, considering that the bailout that he is talking about is really a bailout of entities based in his jurisdiction…a list that include some corporate groups that will probably be asked to make a donation to his re-election. And then we have Wikileaks….was anybody surprised ? And then there was this. If he is this bad after sitting hanging with Putin, then he would… Read more »
Ich bin Irland und Irland ist mich.
Wir werden Sie auf dem Land kämpfen. Wir werden Sie bei Himmel kämpfen und wir werden Sie auf dem Straße kämpfen.
Cowen muss gehen, Cowen muss gehen, Cowen muss gehen, Cowen muss gehe, Cowen muss gehen, Cowen muss gehen, Cowen muss gehen, Cowen muss gehen, Cowen muss gehen
Did anyone watch Kown on 6pm news with Brian Dobson ?
Kown is a great Rapper he does it so well with his arms and hands all over the place .In fact I have never seen a style like his .I would call it a Crab Rapper lifting his two claws high and pointing his fingers down at poor Dobson ….geeze mann he is kool .
Is he a Raining T-Shock ?
Lip Service
http://www.rte.ie/player/#v=1088912
LOOK at His Face
Now THINK of a Moon
Do You SEE the Wobble ?
When a citizen goes into his local bank, and lodges a few quid, does that citizen now have an interest in that bank surviving and thriving. Yes he does. Citizens v bankocracy is not a clearcut divide. There are many citizens who benefit from a bank being saved, notably the depositors. Are David’s Austrian friends going to so gung-ho when it’s their bank, with their money, that goes belly up. I doubt it. The real battle seems to me to be between those with are creditors to the banking system, and those who are net debtors to the banking system.… Read more »
BanKOcracy – Jobs for the boys
Enda was quiet in the Dail
– New party FF and FG?
‘Worst of both worlds’
To stop LP
Two faced two hander
– Craven O CuÃv and Kown
Moron gombeen Slime
‘Guarantee was necessary’
No mention of Anglo
Burn bondholders though
Or Tricky Trichet or Sarkozy
Their guarantee!
A new eFFin Error!
IMF FF FG
Swine guarantee
Swindelers effigy.
The tide begins to EBB for(Eamon, Brian, Bat)
You have to be amazed at the power of bankers who turned FF into a party filled with kamikaze pilots willing to put the bankers before party and country.
I know it was helped by a huge dose of ignorance about economics from DoF and the FFers, but still!
Looking ahead, will Mary be crowned before sunset?
No one else wants it:)
http://rt.com/programs/keiser-report/keiser-report-maize-mexico/
Look at Tunisia. We should be like them, were we can say we them all out and they all must go.
We need to revolt because change that the Irish people want will not happen without it.
BBC ceefax – 15/1/11 ——————– Herbal Remedies Face License Rule Hundreds of traditional and imported remedies on the shelves of health shops and herbalists are set to be banned under new licensing rules The EU directive aims to protect users from any damaging side-effects that can arise from taking unsuitable medicines Only high quality long established and scientifically safe ferbal medicines will be sold over the counter Some traders who sell products imported from outside the EU say their business will be hit ————————————- The keywords here are “long established” and “safe” because as only big Pharma has the budgets… Read more »
The Experience of a Journey If a soccer ball was all one colour and a plain surface would you see it twirl if it was high up in sky against a heavenly background .You definately would see it move in the sky in the direction it was kicked .But would you notice the twist as it travels.It is the twist too that determines its aero dynamics and it proven success to win the score it was intended to do so by the player.This is the real experience spectators love to watch but not everyone see the twist and sometimes no… Read more »
Maybe Seanie Fitz is full of bull ?
http://www.irishtimes.com/blogs/business/2011/01/14/fitzpatricks-tale-hard-to-swallow/
He makes all sorts of claims. It is like as if he knew less about what was going on in Anglo than the Ditherer knew about what went on in the planning unit of the old Dublin Corporation.
I am begining to think that Seanie Fitz is trying to delude us.
Here is a review of the Sean FitzPatrick book. There seems to be a common theme with respect to these fallen former figures of authority. When they were responsible, they knew very little of what was going on. I would describe this as “pulling a Bertie” after the main proponent of this excuse, the Drumcondra Ditherer. http://www.irishtimes.com/newspaper/weekend/2011/0115/1224287538221.html Now, we know that Seanie Fitz did his bit to keep the rif-raf out of various Wicklow golf courses. But for a man who likes to come across as the consumate patrician and insider, his language is a bit of a let down.… Read more »
baa!
we have been sheep
we are sheep
we will be sheep
because we allow it to be so.