SPAIN is trying to call Gemany’s bluff. Yesterday, the Spanish finance minister made a direct appeal to the rest of Europe to bail out Spanish banks or at least to put together a fund to recapitalise the Spanish banks. This is exactly what Germany didn’t want but may have to ultimately accept. If it wants to keep the euro, Germany will have to pay through the nose for the pleasure. By opening up another front, the Spaniards have rammed home the point that Europe’s problems are not about fiscal deficits as the Germans maintain, but about the consequences of hyper-borrowing and lending in the boom.
The banking crisis in Spain is not destroying wealth but merely reflecting the extent to which Spanish and European wealth has already been destroyed via too much borrowing and lending to stupid investments which have now gone sour.
This leaves Spain in the same bind as Ireland: the banks are facing mass defaults as the price of property keeps falling. Independent estimates suggest that Spanish house prices could fall by another 35pc if they mirror similar crashes from peak to trough in the sunbelt states of the US. This obviously has an impact on the extent to which the loans go bad. At the moment, Spanish banks have made provision for 2.5pc of loans going bad, yet we know from Irish experience that this can rise very quickly.
Let’s say, given the collapse of Spanish demand and the credit crunch that stems from bank crises, that Spanish defaults rise to 10pc, then we have a huge problem. On top of the banking losses, if we add all the various hidden debts in Spain — from the various regional and local government debts to the total central government debt — we can see that the debt to GDP ratio rises rapidly. Finally, Spain’s unit labour costs have to fall by 30pc to get down to German levels.
The country is chronically uncompetitive and that loss in competitiveness happened when Spain joined the euro. Huge inflows of cash made everyone feel richer. They rewarded each other with higher wages without productivity gains and thus dragged up the cost base and dragged down the bottom line.
As the construction sector collapsed, the budget deficit increased on top of what we already know, in total this year, is €180bn of bonds that Spain has to refinance.
Is it any wonder that the Spanish have thrown in the towel and looked for assistance?
Now for the tricky bit. The Spanish move begs three questions. If Spain gets the EU to bail out its banks using the ESM, will there be enough money in the ESM to do it? Second, if the Spaniards get the ESM to take their bank debt, don’t we have a good case for retrospective treatment? Third, what if Germany says no?
Although not in place yet, the ESM is touted as being as big as €900bn. But this includes contributions from Ireland, Portugal and even Greece — all bust countries. And the German contribution to the new ESM is going to go up from €211bn to €401bn. This has yet to be passed by the Bundestag.
If Spanish losses in the banks were as high as the €200bn that analysts suggest, on top of its refinancing demands of €180bn and its current deficit which is north of €80bn, Spain alone could absorb nearly half of the total fund. And, of course, we know that if Spain is asking for funds, it means it is now as good as in the clutches of the troika. This also signals that Italy will not be far behind.
In terms of our own narrow interests, if Spain were to persuade the ESM to take its bank debts, that would leave the rope for us to transfer our bank debts from the Irish citizen to the EU citizen. But then again, the EU citizen would be right to ask the bank creditors to just take their losses without asking us to bail them out.
Perhaps the most interesting issue raised by Spain’s move is whether the Germans have the stomach for much more of this.
I am not too sure that the central assumption of Irish establishment conventional wisdom, which is that ultimately the Germans will pay, is entirely right. We know all the arguments about why they like the euro and it subsidises their industry etc, but deep down there is a schism within the power brokers in Germany. It is clear that the Bundesbank is getting very hot under the collar about the ECB and what the Bundesbank sees as the ECB’s cavalier attitude to money in its printing cash and bailing out of governments. Many Germans feel the same way.
They know that the ECB’s and Germany’s only hope to keep the euro intact is through breaking the rules about lending to government and banks. There’s a conflict between those who say the rules are sancrosanct and others who believe rules must be broken to keep the whole show on the road.
Many Germans are philosophically in the first camp. Rule-breaking contradicts their moral code. However, the rest of Europe — and those in command at the ECB — see the rules as fungible. This loose grouping takes the view that the end justifies the means. This is hard to take for many German people; it goes against everything they hold to be morally right.
IN a sense, there is a moral dilemma playing out in the heads of Germans. If we extend this moral view of the world to money, the two sides can be broken down into simpler forms. Those like me and many other economists who see money as a “tool” used to push economies in certain directions, and the Germanic view, seeing money as a “common good”, protected by treaties and laws. In this second, moral worldview, the economy adapts to money — not the other way around.
Maybe these Germans might wake up one day and say they’ve had enough. Then the euro unravels quickly. If that happens, you can rest assured that the day this moral revolt started in Germany was the day Spain tried to call Germany’s bluff.
Come to a discussion on financial markets in our everyday world, June 17 with David McWilliams and novelist Aifric Campbell at www.dalkeybookfestival.org
Good morning.
David, I like the article but there is a part of me that is tired! I like the sense that you and the contributors to this site make but do we see fruit from the discussions in terms of Government actions??? Most Irish people have gone through the normally school system and what do we learn about finance, personal finance or community finance? Practically nothing. I hate to say it but we have a system that produces ignorance. Awareness needs to at a higher level for us to make better decisions!!! Question: Are you or any readers here aware of… Read more »
In my opinion this article highlights a flaw in your thinking. You see money as a tool to move an economy. I assume you look at this through aggregate demand stimulating production, so by increasing aggregate demand you drag the economy along. Except money printing is “fake” aggregate demand, and you end up with “fake” production. [bubbles] So no matter what you decide to do, once you hit print at the ECB and pump cash into the system we are doomed to more froth and nothing tangible. The banking system is broken, it has misallocated trillions of capital which should… Read more »
Unreality Reigns in Debate of Spanish and Eurozone Collapse June 6, 2012 (LPAC)–Everything except what is required — a Glass- Steagall standard and credit system — is being proposed to deal with Spain’s debt blowout and the Eurozone crisis. Following the June 5 emergency teleconference by G-7 finance ministers, it was reported today that Germany has “softened” its stance and is considering a plan to recapitalize Spanish banks, which allegedly won’t include the imposition of harsh austerity measures, since Premier Rajoy has already shown he can do a good job in imposing austerity elsewhere in the economy. But the flavor… Read more »
The reference to “common good” by DMcW is indeed the central point. The only possible morality money could possibly have is in service of the Common Good. This was first put into a constitution by Alexander Hamilton, who created the First National Bank of the USA, a credit system, committed to the common good. The irony of this is that Leibniz in Germany was the first to define this many years before in Securitas Publica, a must read for any serious political economist. Germany is very much aware of how long it took to get this far and regression is… Read more »
Note plans for a Banking Union, reported in previous theme here, means saving 25 EU banks only. Moody’s Attacks German Public and Mutual Banks June 6, 2012 (EIRNS)–In a clear attack on the German public banks and mutual banks (community banks), Moody’s today downgraded by one point DekaBank (the capital investment subsidiary of the savings banks), the DZ Bank (one of the two central institutions of the mutual banks, Raiffeisen- und Volksbanken), while the second central institution of the latter was put on “negative watch). State banks LBBW, Helba, and NordLB were downgraded by one point. Also, Commerzbank (which has… Read more »
Rating agencies have their man in Italy : Monti Questioned on His Relationship with Moody’s June 6, 2012 (EIRNS)–After many media reported that Mario Monti has been an international advisor to Moody’s, the government office has been forced to issue an official statement saying that Monti was part of a senior international advisory board, but never dealt with sovereign debt. The criminal investigation on Moody’s has expanded to Moody’s Italy CEO. Meanwhile, a drop in consumption caused by Monti’s austerity measures has produced a 2.2% drop in VAT revenues for the government, and an EU3.5 billion gap in the budget.… Read more »
Here we go again, Eurobonds, EU President, ESM all one dictatorship. A Merkel-Monti Duo to replace Merkozy ? Rome-Berlin Axis for European Führer June 6, 2012 (EIRNS)–As part of the new Rome-Berlin axis, pro-euro members of the Italian Parliament have agreed with German Bundestag members to vote up a common resolution to accelerate the process towards an EU dictatorship. The resolution calls for direct election of a European President. The resolution was agreed upon May 23 by delegations led by Italy’s Lamberto Dini and by Germany’s Ruprecht Polenz and Petra Merkel. The Italians reportedly wanted the Eurobonds in the resolution,… Read more »
The fact is that the ECB has been lending money to the Spanish banking system since 2007, where private banks would not do this for fear of the money disappearing down a hole. If the Spanish banks are refucing to “mark to market”, and the ECB is providing them with liquidity that they are evidently not worth, then we have already reached the point of the institutional framework of the ECB becomming a joke. In fact it became a joke when Trichet took over from Wim Duisemburg. The media called him dim Wim, because he kept interest rates up so… Read more »
Look who is putting the squeeze on Germany. DMcW – It seems Obama and Cameron are reading this blog!!! Frantic Call by Cameron and Obama for “Immediate Plan” to Rescue the Eurozone June 6, 2012 (LPAC)–G-7 finance ministers had barely finished their emergency teleconference June 5, to discuss the eurozone and Spanish debt blowout, when David Cameron and Barack Obama hopped on the phone to discuss the same subject, Cameron’s spokeswoman Vickie Sheriff announced today from Downing Street. The two have issued a call for “an immediate plan” to save the euro and “tackle” the eurozone crisis. Good luck with… Read more »
Capashin day centre was on tv3 and an old man was interview and said he met enda kenny and asked him could he live on 210 euros a week kenny never answer the man,shame on kenny and the rest of his government,is this the Ireland we voted our government to oversee.
I call on this government to stop awarding pay rises to spin doctors and instead give that money to such centres who do good.i for one after seeing the centre on tv was shocked and will be offering my help to the centre in any way I can.
Expanding Support for Glass-Steagall June 6, 2012 (LPAC)–Rep. Judy Chu (D-CA32) has become the latest co-sponsor of H.R. 1489, making her the 65th Member of the House to formally support the reinstatement of Glass-Steagall. In Utah, Dan Liljenquist, a Tea Party-backed Republican challenging Sen. Orrin Hatch of Utah in the GOP primary, said he supports reinstating Glass Steagall, at a town hall meeting on Saturday in Provo. Liljenquist, a former consultant for Bain Capital, was asked, “Are you in favor of reinstituting Glass Steagall?” He answered: “I am in favor of reinstituting Glass-Steagall, but let’s take it offline. It’s very… Read more »
Well I said it before Spain will be no push over ,we the Irish let FF destroy this country and then we elected a pack of liers in on the promis of there lies,so we replaced one bunch of liers ,with another bunch of liers.
The school bully is a live and well and resides in the dail .
Question if the government can bully the Irish people why can’t it bully Europe .
Maybe the difference is Europe stands up to the Irish bully or maybe not?
To approach precision :
QUESTION: The amount of bad debt on the books of Spanish banks, which has to be bailed out to avoid formal bankruptcy, is:
A) 300 billion euros
B) 375 billlion euros
C) 475 billion euros
D) 10 squillion euros
E) All of the above
The correct answer is letter E). Last Friday, Nomura said it was 300 billion; on Saturday, UBS said 375 billion; on Monday, the {Financial Times} reported 475 billion; and 10 squillion euros is a fair estimate of where this is all heading.
I wonder what kind of bluff a Squillion is?
Morality of Money?… No, it is the Immorality of Policies and Politicians! David’s article on the Morality of money fails to address the system inherent problem, the built in design flaw, the real reason for this engineered coup d’état, instead it offers the narrow focus of a true believer, a disciple of an unsustainable capitalist world that does not hesitate to equal economists with philosophers. The triumph of the financial capitalist Industry is the downfall of the west. Triumph over who? Globalization enabled the corporatist world to bend all rules to maximize profits and limitlessly exploit the people of our… Read more »
RE: the ‘ignorance is bliss’ goal of education If I were a conspiracy advocate I would reckon the Irish education system is designed by the evil Illuminati to produce automatons for their evil machinery. Dodo school leavers and dodo graduates with no tools to understand the mechanisms behind their own reality = dodo population living in a contrived bubble of ignorance and acting accordingly and passing on their fatalistic ignorance to their children who are themselves being educated by the manufactured dodo teachers. Meanwhile the Oz Wizards of Illuminati pull their strings and chuckle to themselves with great secretive satisfaction… Read more »
Ah yes Spain. Another crony run economy. Run by a group of insider syndicates using the banking system to inflate a property bubble to cream the euro with the help of City of London CDS weapons of mass destruction. And surprise surpriser, the Spanish decide yesterday to blame Germany. Pathetic. How about the Spanish insiders sitting on the pile of cash they stole, how about returning the stolen wealth into the Spanish economy instead of blaming Germany. Christ this finger pointing at Germany by mainstream media is getting barmy. BBC yesterday and their reporting of it pure City of London… Read more »
Good article David, Politics is now finally at work and not the German aspergers syndrome attitude to accountancy or economics; Spain has learned lessons from Ireland and Greece and it is using a brinkmanship similar to that of the Greeks but Spain is not Greece the Spanish are been given the nod by other nations. Last night Cameron sent strong messages to German on the airwaves with the blessings Obama’s and others. The Germans may well be aware that they need to become more adult and drop there aspergers syndrome attitude towards money, if they don’t they may be politically… Read more »
Interesting read
Everybody has to sometimes break the rules
A wee song for Frau Merkel:
http://www.youtube.com/watch?v=1PKfM-nMkPo
Time to look at the positives here, the Eurozone has no inflation problem. Costs in all countries are reducing; admittedly through a painful adjustment. Remember inflation hits the poorest the hardest as they have less money in the first place and usually have no assets. It the Euro can hold it together over the next few years I see the whole EU economy rebounding rapidly. My big criticism is the EU’s marketing and messaging of their side of the story is really desperate. Some of that is the right wing British press (Murdoch) hell bent on EU destruction but most… Read more »
Interesting article David on the nature of money and it’s role in society. To understand this more clearly I think we should look at what characteristics good money should have and how our current system fares out. The first characteristic money must have is that it must be a convenient medium of exchange. On this score the Euro does very well as it is used and accepted throughout Europe and is very convenient to use. The second main characteristic good money should have is that it should be a store of value. That means it should maintain it’s purchasing power… Read more »
By people I mean the ordinary citizens who are losing the purchasing power of their money through constant and deliberate debasement. You can be quite sure that the elite bankers are stocking up on precious metals because they have designed this monetary system and know it leads to inflation and constant debasement of money. I don’t give a shit about these people what I am trying to do is to show how the “tool” that we use for money does not have the characteristics necessary to be good money and that this is a deliberate policy. Our monetary system is… Read more »
I think we need to be very careful about blaming nation states or their institutions for the current financial wreakage. The German did not cause the mess and neither did the Spaniards…and guess what, money will only ever be a temporary stopgap. I am with the idea of using money as a tool to direct economies – but only very temporarily. Adrenalin is just for that fight or flight burst to get out of trouble. The snag is, we are only running on adrenalin and nothing else for the last 20 od years and that causes burnout and death. Keynsian… Read more »
Here is some of Friedrich List’s work on Political Economics.
http://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/list/list1
Compare this to the discredited standard fare and wonder not how we got into this mess.
From above: Many Germans are philosophically in the first camp. Rule-breaking contradicts their moral code. However, the rest of Europe – and those in command at the ECB – see the rules as fungible. From Wiki: Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution, such as crude oil, shares in a company, bonds, precious metals or currencies. It refers only to the equivalence of each unit of a commodity with other units of the same commodity. Fungibility does not describe or relate to any exchange of one commodity for some… Read more »
Philip,
Agree with most of your comments from last article and this one too.
The banker ends up owning all, like monopoly.
But only if the game is a usury system of debt money.
Now there are different money systems available to use.
Usury is one which is radioactive.
Whomever uses it will be contaminated.
The last five years summed up rather well by Mike Shedlock:
“China wants to stimulate growth but it has already exhausted every economically viable infrastructure project. All that is left is malinvestment opportunities.”
@ cooldude The currency is merely a utility…and need not be a physical store of value. This notion of commodity money is not the solution to our global monetary problem; although it may be a good means to mitigate personal loss due to the corruption of the present monetary system. It is an error, I believe, to confuse the two issues; in the sense of thinking that the personal solution in times of financial collapse, is also the global solution to the problem of a stable and equitable monetary system. The reason our currencies devalue steadily is because of private… Read more »
Panicked U.S. Financial Circles Find Themselves Discussing Glass Steagall June 7, 2012 (LPAC)–Bloomberg TV on June 5th interviewed two supporters of restoring the Glass Steagall principle, former Treasury TARP Inspector General Neil Barofsky and {Bail Out Nation} author Barry Ritholz, on the great issue: how to prevent another financial meltdown. After both had endorsed the Glass-Steagall principle, their Bloomberg host asked them to respond to the widely-cited Bloomberg Editor’s View of May 23rd, that returning to the days of the Glass-Steagall Act, “is not likely to work. The financial system has evolved in some irreversible ways.” Ritholtz exploded, that the… Read more »
Which Euro Break-up Will It Be: Destructive Chaos? Or Glass Steagall? June 7, 2012 (LPAC)–European bailout schemes are falling apart before they even are set to paper. The Fitch rating service blew out the latest one for Spain, with its announcement on Thursday that they had lowered Spain’s sovereign credit rating by three notches, to BBB, because of the cost of a Spanish bank rescue which they estimated at 80 to 100 billion euros. And 100 billion euros is peanuts compared to the trillion-plus in bad Spanish debt! Each proposed bailout more un-implementable than the next, the details of each… Read more »
Shadows of The Past The recent eclipse of the planet Venus with the Sun has imbued many tears and emotions . Today a very dense water blob crosses the isles and leaves its mark subsequent to the recent earth movements off the coast of Mayo and on land in Italy . Venus has been venerated in Greece in another time and today the Greek born Consort to the Queen lies in wait unable to join the celebrations of the jubilee . More tears thrown on Greek TV live showing clashes of more emotions prior to the imminent break up of… Read more »
The laws of the western economies are written to suit the Banks. Though the Banks have every sophisticated risk management tool and management information system to hand they are exonerated from bad lending decisions. The law merely takes the the simple ( i would say stupidly simple ) view that the borrower signed for the loan so is then by law the culpable party. In almost all cases the Bank is the dominant player in the relationship with more market knowledge,sector knowledge etc than the client. But the system never holds them culpable for bad lending. Only when risk sharing… Read more »
Here is a very good write up on the choices of EU countries,UK and USA. Based on what I read here I give the Euro 6 months. Germany will absorb as much as they can before allowing the collapse. They do not want to be seen as the problem who would not help out. We did what we could thay wil;l say as they step aside and most europeans revert to domestic currencies and inflate their debts away and or default. Hyperinflationary depression is baked in the cake. QU to infinity from all sources. http://www.marketoracle.co.uk/Article34977.html http://www.marketoracle.co.uk/Article34978.html Ireland’s Thieving Banks have… Read more »
Rumours of a new US law regarding US firms in low tax nations.
http://www.democraticunderground.com/1014138847#post2
Twiggy Recall ( made in China ) Twiggy Chapter of David’s book came to mind this week . As we know Twiggy went to Laurel Hill Secondary School, Limerick City . The sister boarding school of that city school in Bruff Co. Limerick is now closing this term . Thus end of a long chapter and old tradition for country girls upbringing. Also Limerick City has failed for the sixth year to produce a Rose to be represented in the Rose of Tralee . Now come to think about it , all bankers originally came from Kerry .And Limerick is… Read more »
By Joseph Campbell
“Behind a web of bottles, bales,
Tobacco, sugar, coffin nails
The gombeen like a spider sits,
Surfeited; and, for all his wits,
As meagre as the tally-board
On which his usuries are scored.”
Football Economics the Mick Wallace way
The German news media may have some fun with the Mick Wallace story????
David I see that you will be interviewing/ in conversation with John Waters at the Dalkey Book Fair on 15 June (I think) about his new book “Was It For This etc”. Should be interesting, but it’s too far for me to come up for. Should be interesting: he always followed the political toings and froings in a close way, like many out in the country do. He reckons people already knew the game was up by the time Cowen got the Taoiseach job – at a gut level. This is probably earlier than is conventionally held. I twigged it… Read more »
Hi Coldblow, Wow, just read John Waters in the Irish times and noticed that David will interview him. I met John Waters once accidently and had a very long chat, a very pleasant man. The subject we discussed at for quite some time was of personal matter to me. I have lot of respect for some of John’s observations but defiantly not his religious ones. I do agree with some of his ideas that why we should leave the EU and Euro. I find most of his work to be dull- not insightful but rather provocative for self publicity he… Read more »
“The Celtic Tiger was neither the nineties nor the noughties, but took a bite out of both that left the remainders of each like doleful twins cast adrift in time, creating a sense of a different possibility for a continuous reality in which the abberation of prosperity never came to pass.”
People actually get paid for writing like that. It sounds like a Raymond Chandler spoof:
I told moll it was a very dangerous assignment and that she’s probably be killed but if she loved me would do it anyway
Doll Parts by Hole ie inc right now…..
Doll Parts by Hole ie inc right now…..
Great job Mr. O’Flynn:
http://www.tv3.ie/3player/show/41/49497/1/Tonight-with-Vincent-Browne
http://www.theglobeandmail.com/report-on-business/international-business/european-business/a-golden-idea-to-save-or-doom-the-euro/article4243556/
Globe and Mail comment on the redemption plan. And a gold backed Euro is stronger than a stand alone euro.
bond interest rates drop from 5% to 1%.
What Glass-Seagall will mean – what will be affected. WHO NEEDS DERIVATIVES? June 8, 2012 (LPAC) — The question, “What would Glass-Steagall do to derivatives holdings?” is heard so often the debates on restoring the Glass-Steagall Act, that one could wonder who is really asking it. A report on global derivatives concentrations, by Fitch Ratings Service, gives a clue. It seems that 10 banks in London do 47% of world derivatives. Sixteen banks based in the United States do another25% of world derivatives ($290 trillion in nominal value), and those 16 have 99.5% of the derivatives exposure of U.S. banks.… Read more »
Spain Being Railroaded into Bailout June 8 (EIRNS)–Spain is being railroaded in taking a bailout which will put all the bank debt onto to the sovereign, but the question is: will the euro survive? Unnamed German and European Union sources told Reuters that Spain is expected to ask Europe for help at the weekend with re-capitalizing its stricken banks. Although the Spanish government denies this, these EU and German sources said that the Eurogroup, comprised of the Eurozone finance and economic ministers, would hold a morning conference call on June 9 to discuss a Spanish request for aid, even if… Read more »
Financial warfare, a reminder of what London is all about. London’s Allies Push for Devaluation and Bank Run in Argentina June 8 (LPAC)–In a June 1 press conference, Argentina’s Deputy Finance Minister Axel Kicillof denounced the rash of rumor mongering and lies about a supposed “de-dollarization” of the economy, emanating from local City of London allies, which he said was intended to sow panic in the population and force a currency devaluation and run on the banks. The Fernandez de Kirchner government has recently tightened exchange controls and import restrictions to defend the economy from capital flight and tax evasion.… Read more »
Glass-Steagall, Split Banking, known as Specialization in Italy, Trennbankensystem in Germany. Guess how broke Glass-Steagall in Italy? None other than Goldman Sachs operative Draghi now ECB chief. Italian banker calls for bank “specialization,” i.e. separation June 8 (EIRNS) – Banker Roberto Mazzotta, chairman of Mediocredito Centrale, calls for a return to the regime of banking separation existing in Italy before the deregulation introduced by Mario Draghi in 1995. In an article in today’s {Corriere della Sera}, entitled “What Today’s Bankers Do Not Know,” Mazzotta writes that although the introduction of the universal banking model in Italy produced fewer disasters than… Read more »
Banking Analysts of Alpha Value Urge France and Europe To Adopt Glass-Steagall June 8, 2012 (Nouvelle Solidarité) — Alpha Value, a very respected private firm of financial analysts published a report saying that Glass-Steagall banking separation “à la française” would be the best way to go for President Hollande in France and for the rest of Europe. According to {Les Echos}, while François Hollande is still undecided about the technical details of the separation of banking activities he wants to adopt, Alpha Value “calls for the rapid implementation of this measure,” i.e., return to a strict Glass-Steagall “in Europe and… Read more »
What is truly so idiotic and laughable about Spain looking for bailout is that its the ‘Spanish banking system’ demanding the billions of euros.
…and yet, all week all we get is the media mis-reporting it as Spain demanding a bailout.
The media are in bed with the banking gangsters it would seem.
Mind you Reuters is owned by the Rothschilds.
And of course it’s h.q is in City of London.
This stuff is not difficult to see and understand once one does a little homework.
Couple of interesting links
Vincent Browne
After Bilderberg, Noonan could usefully visit Moyross
http://www.irishtimes.com/newspaper/opinion/2012/0606/1224317369315.html
U2, Bono? Celeb partners with Monsanto, G8, to biowreck African farms with GMOs
http://www.foreignpolicyjournal.com/2012/06/07/u2-bono-celeb-partners-with-monsanto-g8-to-biowreck-african-farms-with-gmos/