IMF and EU Hammer Ireland !
- The financial MSM are all touting this big rescue, big bailout of Ireland. Ireland is saved by the IMF and ECB. Really? What bailout? Calling it a bailout is a lie. There is no bailout. It is debt enslavement of the sheeple. Ireland is being sold to Illuminist banksters: the private owners of the IMF and ECB. Do not be deceived, these are privately owned/controlled Illuminist central banks.
IMF and EU Hammer Ireland ! (emphasis mine)
Prime Minister Brian Cowen has sold out Ireland bigtime.
The terms of the EU/IMF’s €85 billion ($113 billion) bailout for Ireland are much worse than analysts had anticipated. Ireland will be required to use its National Pension Reserve Fund (NPRF) to shore up its insolvent banks and to maintain government operations. At the same time, senior debt-holders will not share any of the losses brought on by the banks reckless lending. According to Bloomberg News, “Prime Minister Brian Cowen told reporters there had been no support in talks to ask senior bondholders to lose part of their stake on loans made to Ireland’s debt-crippled banks.” Thus, 100 percent of the EU/IMF’s €85 billion “Financial Rescue Package” will be paid for by Irish taxpayers.
This is a very bad deal. Irish workers have already endured nearly 3 years of depression-type conditions with shrinking wages, soaring unemployment and dwindling home equity. Now Brussels is taking aim at pensioners to save bondholders in Berlin and Paris from any losses on their bad bets. And that’s not all. Here’s an excerpt from the government’s statement:
“The facility will include up to €35 billion to support the banking system; €10 billion for the immediate recapitalisation and the remaining €25 billion will be provided on a contingency basis. Up to €50 billion to cover the financing of the State…..If drawn down in total today, the combined annual average interest rate would be of the order of 5.8% per annum.”
This is nothing but extortion. If Ireland wants to put its banks on solid footing, there’s a way to do it that doesn’t involve years of debt-slavery for its people. The government can underwrite the banks with a €10 billion loan from the Pension Reserve Fund that will guarantee deposits while the banks are nationalized and restructured. It is an excruciating process, but it’s been done many times before. Ireland does not have to accept indentured servitude if it chooses not to.
And why would the government even consider paying an interest rate of 5.8% per annum? Interest rates should be the same as they are for the banks; 1 percent. Should a sovereign nation get a worse interest rate than a crooked banker who ripped off millions of investors?
Besides, Ireland is in the drivers seat. It’s Ireland that should be making the demands, not the IMF or the EU. After all, the government currently owes the European Central Bank more than €130 billion. If the ECB wants to get its money back, it should be flexible about the conditions. Otherwise, Ireland can simply cut off negotiations and let the ECB hire a collection agency. See what good it does them.
….
In other words, more penance for the victims. More belt-tightening, higher unemployment, more foreclosures, fewer social services, slower growth, and an ever-deepening slump. And for what? To be a member-in-good-standing in Brussel’s Banktopia?
German chancellor Angela Merkel had been pressing other EU leaders to create a framework in which senior debt-holders would share losses with taxpayers in the future. On Sunday, Eurogroup Ministers announced the creation of a European Stability Mechanism (ESM) which was designed to address Merkel’s concerns. It works like this: If a member state appears to be insolvent, then they must agree to a “restructuring plan” that may involve haircuts for bondholders. So far, so good, only that’s not the way the ESM will work. Here’s an excerpt from the Statement by the Eurogroup which explains why:
“This would enable the creditors to pass a qualified majority decision agreeing a legally binding change to the terms of payment (standstill, extension of the maturity, interest-rate cut and/or haircut) in the event that the debtor is unable to pay……We restate that any private sector involvement based on these terms and conditions would not be effective before mid-2013.” Statement by the Eurogroup, Financial Times)
So, an insolvent country (like Ireland) would need to get “majority” approval before it could declare bankruptcy. How’s that going to work if the other countries are only interested in protecting their own bondholders? Surely, they would block the process.
Jean-Claude Juncker, the head of the Eurogroup, more or less admitted that the ESM was a fraud when he said that “private creditors would be forced to take losses only if ministers agreed unanimously that the country had run out of money.” (Bloomberg) There’s no way that German government officials would allow a country like Ireland to declare bankruptcy if its own banks stood to lose billions of dollars. (which they would)
This should remove any doubt about whose interests are really served by the Eurogroup. Prime Minster Brian Cowen has sold out Ireland bigtime. The so called ”rescue package” should have been rejected outright. It merely provides shady bankers with more money for speculation while condemning the rest of the population to years of grinding poverty and high unemployment. It’s a “lose-lose” situation. Here’s a blurp from a post titled “Ireland is Bankrupt…letter from an Irish citizen” which seems to sum up the mood pretty well:
“It doesn’t matter that we struggled for 800 years to achieve independence, that millions died in the process; it doesn’t matter that the folk memory of harsher times is still very much alive; none of this mattered to the few generations that have dismantled our country institution by institution and thrown the Irish people to the wolves….. Our political system is in ruins. The people have lost all faith in their elected representatives. They feel that welfare for the wealthy, bailouts for crooked corporations and rewards instead of punishments for embezzlement and thievery is the rule of the land. … Our independent republic is less than a century old and already it’s in smithereens — we’re in the gutter and being dictated to by the UK, Germany, France and the IMF. Mr. Ajai Chopra is our new vice-chancellor, our new Taoiseach, our new overlord and big boss and we’ve just been recolonized, first by our own brood of inbred gangsters and now by international bankers….
end
Urgent: Stop the U.S./S. Korean Attack – Know the Facts and Take Action!
- American and South Korean forces were conducting military exercises in disputed territory. It was provocative action. Why would they do that? Obviously, to provoke retaliation from North Korea and use it as a pretext for war. The Anglo-American Illuminist Axis has been blaming North Korea for the sinking of the warship Cheonan. If you explore all the evidence it is quite clear it was not done by North Korea. So, why would America and South Korea intentionally blame the North knowing it is not their fault? It is simply psyop, psywar to get the sheeple all work up for a war with North Korea.
Urgent: Stop the U.S./S Korean Attack – Know the Facts and take action
Once again U.S. imperialism has chosen a holiday weekend time in the U.S., when workers are preoccupied, Congress is in recess, and any opposition or even questions are difficult to raise, to orchestrate a political and military crisis.
On Nov. 23, the government of South Korea mobilized 70,000 troops for a week of military maneuvers just off the border of the Democratic Peoples Republic of Korea. The DPRK said that these military maneuvers simulated an invasion of the north. The military deployment was provocatively held right off the sea borderline between the north and the south. This is an area considered to be disputed territory. We can not be caught off guard. We need to discuss what actions we can prepare to take if this U.S. manufactured crisis escalates.
New and more provocative military maneuvers are planned by the Pentagon against Korea this coming week from Monday Nov 29 to Friday, Dec 3.
….
Due to the enormous weight of 3 generations of U.S. political propaganda and the isolation of the DPRK it is never an easy task to counter the Pentagon’s threats against the people of Korea. But it is essential task. It is important to remind the political movement of today that more than 3 million Korean died in the U.S. war on Korea from 1950 to 1953 and that tens of thousands of troops of occupation continue in S Korea to this day. ….
STOP THE WAR PROVOCATIONS AND ATTACKS ON THE DEMOCRATIC PEOPLES REPUBLIC OF KOREA NOW!
KNOW THE UNDISPUTED FACTS!
SIGN THE ONLINE PETITION to the Obama Administration and s. Korean Govt. at http://www.iacenter.org/korea/stopattackondprk NOW!
PLAN PROTESTS IN THE DAYS AHEAD TO COUNTER THE GROWING WAR THREAT.
Tell the Obama Administration and the south Korean Government you want the U.S./south Korean war maneuvers and provocations against the DPRK stopped immediately, the removal of south Korean and U.S. war ships including the U.S. aircraft carrier George Washington, an end to the U.S. sponsored sanctions against the DPRK, the signing of a peace treaty NOW to end the state of war that has existed since the Korean war, and the immediate withdrawal of the 30,000 U.S. troops that still occupy south Korea, so that the Korean people can freely decide their own destiny.
THESE ARE THE UNDISPUTED FACTS: On Nov. 23, the government of South Korea mobilized 70,000 troops for a week of military maneuvers just off the border of the Democratic Peoples Republic of Korea. The DPRK said that these military maneuvers simulated an invasion of the north.
The military deployment was provocatively held right off the sea borderline between the north and the south. This is an area considered to be disputed territory.
On Nov 23, at 1:00 p.m., South Korean forces fired many shells into waters right off the DPRK. This is an area that the north has a longstanding claim to be within its territory. This claim had been accepted by prior south Korean governments. An hour and a half later, the DPRK retaliated to what it saw as an attack on its territory by firing shells at the South Korean island of Yeonpyeong.
And now the U.S. has announced plans to send the nuclear-powered aircraft carrier USS George Washington and its battle group including war ships, destroyers and hundreds of fighter jets back into the area to participate in new war maneuver provocations.
It is urgent that all who stand for peace and justice make plans now for immediate protest actions in the days ahead.
The U.S. military has been involved in all the war maneuvers by South Korea, going back to the 1950-53 war, and has occupied South Korea since the end of World War II. Why doesn’t the media ask why the U.S. was orchestrating a massive military deployment of troops, ships and aircraft right on the border of the DPRK?
The provocation here clearly comes from the U.S. government and the right-wing south Korean regime, not the DPRK. The regime of Lee Myung-bak has undone earlier moves that improved relations between the two halves of the Korean nation and has brought increased confrontation.
It can never be forgotten that U.S. imperialism waged a horrendous war against the Korean Revolution from 1950 to 1953, one that resulted in millions of deaths and total devastation of the Korean Peninsula.
For there to be peace on the Korean Peninsula, the U.S. should end its support of expansionist, right-wing forces in the south, sign a peace treaty with the north (a state of war still exists after 57 years!) and withdraw its troops so the Korean people can decide their own destiny.
Join us in the days ahead in taking to the streets to protest these U.S. war threats and sanctions that have created a powder keg in Asia. End the military occupation of South Korea! Sign a peace treaty and bring the troops home!
SIGN ONLINE AT :
http://www.iacenter.org/korea/stopattackondprk
NOW!
- See also:
KNOW THE FACTS: North Korea Lost Close to 30% of Its Population as a Result of US Bombings in the 1950s!
‘Proof’ That The Cheonan Was Sunk By North Korea Has Been Thoroughly Discredited !
Beneath The Surface: The Investigation Into The Sinking of The Cheonan!
North And South Korea On The Brink Of War, Russian Diplomat Warns!
First Nuclear World War Just Around the Corner?
War Preparations? Biggest U.S.-Israeli Joint Infantry Exercise Ever! US, South Korea to Stage Another Military Exercise! US Provocation: Chinese General Criticises US Navy Exercise!
Russian Probe Sees No North Korea Hand In Cheonan Sinking! Russia Says Sea Mine Sunk Cheonan.
US Professors Raise Doubts About Report on South Korean Ship Sinking!
The New Gulf of Tonkin: South Korean Torpedo Sunk Warship?!
The Korean Crisis: Cui Bono?
South Korean Pastors Question Conclusions of the Cheonan Sinking Investigation! Who is Staging a War Between North and South Korea?
Did an American Mine Sink The South Korean Ship Cheonan?
Attack Against South Korean Ship Looks Like False Flag Operation!
Russia Wants ’100% Proof’ N.Korea Sunk Ship!
Beijing Suspects False Flag Attack on South Korean Corvette!
The Sinking of The Cheonan: Another Gulf of Tonkin Incident?!
Questions Raised Following Cheonan Announcement!
The Sinking of the Cheonan: We Are Being Lied To!
Probe Concludes German Made Torpedo Sank South Korea Ship!
end
EXPOSED: US Concentration Camps in Iraq!
- How would you behave after being abducted off the street and being locked up here for over a year? People are being detained in Concentration Camps in Iraq under deplorable conditions without being charged with any crime. Many have been there for a year or more and some are now both physically and mentally sick.
There are even children there as young as age 9!
In defense of children in these camps, the US Military personal actually said…”but they have movie night.”
It is claimed that sometimes relatives are grabbed and thrown in the camps when they come to visit. It would not take this happening to too many before people would be afraid to visit, thus depriving those detained from receiving visitation.
Surely some may have done wrong.
However, you cannot just round people up and throw them in a Concentration Camp without any charges…without any justice.
end
Israelis Unleash Dogs on Palestinians!
- Zionist ’666′ Israel is not of God. It is the only nation in the world that flies a ’666′ flag. It is in total violation of God’s law! It has openly committed genocide and ethnic cleansing for the past 60+ years while pathologically lying about it!
Exodus 22:21
“You shall neither mistreat a stranger nor oppress him, for you were strangers in the land of Egypt.
Exodus 23:9
“Also you shall not oppress a stranger, for you know the heart of a stranger, because you were strangers in the land of Egypt.
Leviticus 19:33
‘And if a stranger dwells with you in your land, you shall not mistreat him.’
Leviticus 19:34
The stranger who dwells among you shall be to you as one born among you, and you shall love him as yourself; for you were strangers in the land of Egypt: I am the LORD your God.
Leviticus 23:22
‘When you reap the harvest of your land, you shall not wholly reap the corners of your field when you reap, nor shall you gather any gleaning from your harvest. You shall leave them for the poor and for the stranger: I am the LORD your God.’”
Leviticus 24:22
You shall have the same law for the stranger and for one from your own country; for I am the LORD your God.
Ezekiel 47:22-23
22 It shall be that you will divide it by lot as an inheritance for yourselves, and for the strangers who dwell among you and who bear children among you. They shall be to you as native-born among the children of Israel; they shall have an inheritance with you among the tribes of Israel. 23 And it shall be that in whatever tribe the stranger dwells, there you shall give him his inheritance,” says the Lord GOD.
Israelis unleash dogs on Palestinians
Israeli forces have unleashed their dogs on the Palestinians decrying the oppressive policies Tel Aviv implements on the occupied Palestinian territories.
The forces used the “savage” animals, sound bombs and tear gas to suppress the protest which erupted before the Israeli troops razed two residences in the Arab neighborhood of Issawiya to the ground, the Palestine News Network (PNN) reported Tuesday. One of the protesters sustained injury from a dog attack and four other Palestinians were tear-gassed by Israeli forces, AFP reported.
Israeli military also flattened one building elsewhere in East al-Quds (Jerusalem), PNN said, adding that home owners destroyed one residence in the Sheikh Jarrah neighborhood to avoid the demolition fee imposed by Israeli authorities.
Israel claimed its existence in 1948 during full-scale military operations against the Arab world, forcing 711,000 Palestinians to leave their homeland.
In 1967, Tel Aviv went on to occupy and later annex the West Bank and East al-Quds, the promised capital of the future Palestinian state, in defiance of the international community’s refusal to recognize the annexation. Estimates in 2008 put the number of the refugees at over 4.6 million.
The network cited an al-Quds-based think tank as saying that 3,655 Palestinians, including 807 women and 1699 children, would be forced out of East al-Quds in the next year as a result of the demolitions.
- See also:
History of Zionism – Ethnic Cleansing of Palestine !
Zionists Israel’s War Crime is Undeniable ! 60+ Years of Genocide And Ethnic Cleansing!
Something Your Zionist Media Won’t Tell You!
BBC: Israeli Soldiers Ate Chocolate While Shooting Children!
Video Israel Doesn’t Want You to See!
Flashback: Not guilty. The Israeli Captain Who Emptied His Rifle Into A Palestinian Schoolgirl !
Israel Plans Mass Forced Removals of Bedouin! Negev Village Torn Down For Second Time!
Ethnic Cleansing in the Israeli Negev!
Israel Denying Life Saving Health Care To Palestinians!
If Americans Knew What Israel Is Doing! VIDEO WAS CENSORED!
Netanyahu Admits On Video He Deceived US To Destroy Oslo Accord ! America Is Easy To Push Around !
Israel Refuses To Stop Using Internationally Banned Phosphorus Bombs!
Torture Of Palestinian Child Prisoners “Widespread And Institutionalised”!
Palestinian Women Political Prisoners!
Terrorist Foundation of Zionist Israel ! Terrorist Menachem Begin, King David Hotel Terrorism, Irgun, Lehi…Deir Yassin …
IDF Put Arsenic in Detained Gaza Flotilla Volunteer’s Food !
Most of the Palestinians Are Jews! The Biological Descendents of The 12 Tribes Of Israel !
Israeli Border Police Destroy Vegetable Fields in Al Baqa’a Valley!
Exposing Zionist Israel !
Zionist Israeli Confessions!
Gaza Flotilla: Facts vs Zionist Israeli Fiction!
Zionist Mossad Involvement in 9/11: Five Dancing Israelis!
Fake Al Qaeda Actors EXPOSED! Adam Gadahn & Yousef Al-Khattab! Zionists!
Israel Lying to English Speaking World About Lifting Gaza Blockade!
Zionist Israel: Man Evicted From His Own Home And Shot In The Hand And Feet For Not Running Away Quicker!
Israel’s Inhumane Siege of Gaza!
Fake Israeli Videos on the Attack of the Mavi Marmara! Deception Has Failed !
The Racial Supremacist State of Israel !
Israel’s Cult of Victimhood: ‘Barefoot’ Soldiers on the High Seas!
The Gaza Blockade Is Illegal and the Flotilla Attack Was an Illegal Act of War!
Palestinian Loss Of Land 1946-2000!
Jenin Jenin: The World Is Turning A Deaf Ear To The Genocide of Palestinians by Zionist State Of Israel!
Dr. Norman Finkelstein at the University of Waterloo: We Should Not Be Silent On The Massacre Of The Palestinians By The Zionist State Of Israel!
Gilad Atzmon: To Say NO To Israel Is To Say NO To Racism!’
Jews Against Zionism!
Israel Accused of Ethnic Discrimination After Stripping Palestinians of East Jerusalem Residency !
Zionist Israel Keeps Up Palestinian Evictions !
Say NO To Ethnic Cleansing Of Palestinians by Zionist Israel!
Jewish Rabbi: Kill Enemy Children!
Zionist Israel: 60 years of Ethnic Cleansing and Mass Murder!
After All I am a Proper Zionist Jew by Gilad Atzmon !
Israel Preparing Public for a New War(Genocide) in Gaza !
Palestinians Homeless Again After Eviction! Israeli Racism and Oppression!
WHO: Israel Prevented Entry Of Medical Equipment Into Gaza!
Amnesty International: Palestinians Denied Water !
Daily Show: Anna Baltzer and Mustafa Barghouti on Peace in Palestine!
Zionist Israel’s Terrorist Roots!
Gaza 2009: Operation Cast Lead!
The Synagogue of Satan!
The Roots of Evil in Jerusalem!
If Americans Knew What Zionist Israel Is Doing!
Zionism: The Real Enemy of the Jews!
Jewish Rabbi: Zionists are Godless Criminal Thugs!
Zionism: A Conspiracy Against Jews!
Hannity vs Traficant on Israel Lobby and US Policy!
Jews Say ‘Justice for the Palestinian People!’
United Nations Report: Gaza Acts Amounted to War Crimes!
Zionist Pioneer Renounces Zionism!
Ex-Israeli Minister Shulamit Aloni: Calling People Anti Semitic is a Trick to Stifle Criticism! We Always Use it !
Did Ahmadinejad Really Called for Israel To Be ‘Wiped Off the Map’?
Alex Jones on Israeli Lobby And The Zionist
LA Times – Zionism is the Problem!
Jewish Canadians Concerned About Suppression of Criticism of Israel
Gaza Genocide Must Not Be Forgotten
Khazar Empire, Illuminati and New World Order
Richard Falk – Memories of Warsaw Ghetto
CBS 60 minutes – Exposing Apartheid !
Gaza 2009 – We will never Forget !
Solidarity with Gaza – Canberra Australia
The Truth About the Gaza Massacre!
We will not be silent on Gaza!
UK Jewish MP – Israel Behaving Like Nazis
Life In Occupied Palestine – Anna Baltzer
Protests Against Gaza Massacre by Anti Zionist Jews
Anti Zionist Jews’ Demonstration Against the Zionist Massacre in Gaza
Zionism is the Cause of the Problems - Rabbi
Anti Zionist Jews that lived in Palestine Tell Their Story
AMERICAN JEWS OPPOSE ISRAELI POLICY IN GAZA
Israelis who Refuse to Serve in the Military – American Jews Protest !

Revelation 2:9 - .... and I know the blasphemy of those who say they are Jews and are not, but are a synagogue of Satan.
end
The European Sovereign Debt Situation Will Be Solved By Money Printing!
- Do not listen to what the politician snakes and the financial MSM says. See what actions snakes take. How do you tell when snakes lie? Whenever they move their lips! America, Eurozone and Japan will QE to infinity! All major fiat currencies are in trouble. We are heading towards an engineered global currency crisis. The Illuminist snakes will introduce their One World Currency, Global Central Bank and World Government at the end of it. They will undoubtedly use war as ‘gentle persuasion’ for the rest of the world to comply with their new Luciferian world hegemony! Guild Investment:
The European Sovereign Debt Situation Will Be Solved By Money Printing!
European Crisis In The Headlines; Irish Example Proves That The European Sovereign Debt Situation Will Be Solved By Money Printing
Ireland gets a bailout, and at least part of it will be provided by money printing, aka quantitative easing (QE). This bailout is not nearly enough to solve the problem that Europe faces as a whole, which has been delayed as predicted. It is not surprising that Europe’s short embrace of austerity has been unsuccessful. It seems that politicians only choose austerity until all other alternatives have been exhausted, and history is replete with examples of this pattern.
It is obvious now, and has long been obvious to us that Europe will opt for QE combined with a small smattering of austerity. Their claims of “implementing real austerity” are largely just political talk, and we believe they will opt for very moderate and insufficient levels of austerity.
Experienced observers have learned to watch what they do, rather than believe what they say. The European nations are bailing out Ireland, and Portugal is next, to be followed by Spain, Belgium, Italy, and even France in the future. The solution that politicians will embrace will be QE because a program of strong economic austerity means the end of their political careers. They will put their careers above their national interest and the interest of the Euro community.
end
Irish Minister: ECB ‘Bounced’ Ireland Into Bailout!
- C’mon Irish Tigers: tell the banksters to piss off. They are making you pay for Illuminist banksters debts till the umpteenth generation. Why should your children, grand children, great grand children…. be made to pay for all these banksters’ debts? This is an engineered crisis to screw Ireland. To bring Ireland into debt servitude. It is simply conquest of Europe via fraudulent finance! Do yourself and your children a big favor: DEFAULT!
Irish Minister: ECB ‘Bounced’ Ireland Into Bailout
DUBLIN—The European Central Bank is putting pressure on Portugal to seek a financial rescue package just as it did in the run-up to Ireland’s bailout, Irish Justice Minister Dermot Ahern said Tuesday.
“There were people from outside this country who were trying to bounce us …into making an application—throwing in the towel before we had even considered it as a government,” Mr. Ahern said state broadcaster RTE Radio. “If you notice they are doing the same with Portugal now because they fear that Portugal will now cause contagion,” he added. When asked who “they” were, Mr. Ahern said they were “quite obviously” officials from the ECB.
Ireland on Sunday agreed to a €67.5 billion ($88.58 billion) financial aid package with the European Union and the International Monetary Fund. The U.K., Sweden and Denmark are providing bilateral loans as part of the package, while the Irish state will contribute an additional €17.5 billion from the National Pensions Reserve Fund.
Mr. Ahern said the European Central Bank’s effort to “bounce” the government into a decision occurred before the cabinet had discussed applying for aid formally or otherwise. He said the government wasn’t lying when it said it hadn’t made an application.
Ireland’s Prime Minister Brian Cowen and Finance Minister Brian Lenihan were heavily criticized by the opposition and the Irish public for denying the country was going to make an application to the European Union and International Monetary Fund for funds.
Speaking to state broadcaster RTE Radio, Mr. Ahern said there was “considerable pressure” for Ireland to give up its 12.5% corporation tax rate in the lead-up to the country agreeing to the rescue package.
The minister—who said he won’t be standing in the forthcoming general election early next year—also said he believed officials at the ECB were leaking information on plans for Ireland’s aid package, adding further pressure.
end
Ireland’s Debt Servitude!

Source: The Telegraph UK. http://www.telegraph.co.uk
- The Illuminist banksters have taken over Ireland. The Irish people should reject the bailout (actually debt/loan) by the ECB/IMF. They will be paying for it for generations. Ireland should vote to get out of the EU and EMU immediately! Do the world a favor: default and tell the banksters to piss off!
Ireland’s Debt Servitude
Stripped to its essentials, the €85bn package imposed on Ireland by the Eurogroup and the European Central Bank is a bail-out for improvident British, German, Dutch, and Belgian bankers and creditors. The Irish taxpayers carry the full burden, and deplete what remains of their reserve pension fund to cover a quarter of the cost.
This arrangement … was announced in Brussels before the elected Taoiseach of Ireland had been able to tell his own people what their fate would be. The Taoiseach said afterwards that Brussels had squelched any idea of haircuts for senior bondholders: a lack of “political and institutional” support in his polite words: or “they hit the roof”, according to leaks.
One can see why the EU authorities reacted so vehemently. Such a move at this delicate juncture would have set off an even more dramatic chain reaction in the EMU debt markets than the one we are already seeing. It is harder to justify why the Irish should pay the entire price for upholding the European banking system, and why they should accept ruinous terms.
I might add that if it is really true that a haircut on the senior debt of Anglo Irish, et al, would bring down the entire financial edifice of Europe, then how did any of these European banks pass their stress tests this summer, and how did the EU authorities ever let the matter reach this point? Brussels cannot have it both ways.
Ireland did not run large fiscal deficits or violate the Maastricht Treaty in the boom years. It ran a fiscal surplus, (as did Spain) and reduced its public debt to near zero. German finance minister Wolfgang Schauble keeps missing this basic point, but then we don’t want to disturb a comfortable – and convenient – German prejudice.
Patrick Honohan, the World Bank veteran brought in to clean house at the Irish Central Bank, wrote the definitive paper on the causes of this disaster from his perch at Trinity College Dublin in early 2009. Entitled “What Went Wrong In Ireland?”, it recounts how the genuine tiger economy lost its way after the launch of the euro, and because of the euro. “Real interest rates from 1998 to 2007 averaged -1pc [compared with plus 7pc in the early 1990s],” he said. A (positive) interest shock of this magnitude in a vibrant fast-growing economy was bound to stoke a massive credit and property bubble.
“Eurozone membership certainly contributed to the property boom, and to the deteriorating drift in wage competitiveness. To be sure, all of these imbalances and misalignments could have happened outside EMU, but the policy antennae had not been retuned in Ireland. Warning signs were muted. Lacking these prompts, Irish policy-makers neglected the basics of public finance.”
“Lengthy success lulled policy makers into a false sense of security. Captured by hubris, they neglected to ensure the basics, allowing a rogue bank’s reckless expansionism,” he wrote.
…..
Given this, why should the Irish people accept the current terms? As Citigroup said in a note today, the EU part of the package will come at around 7pc — higher than the fee paid by Greece. … By 2014, interest payments on Ireland’s public debt (then 120pc of GDP) will be €10bn, while tax revenues will be €36bn. This ratio is well above the average default trigger of 22pc, as calculated in a Moody’s study.
Nominal Irish GNP has contracted by 26pc since the peak. It is nominal, not real, that matters for debt dynamics. Ireland is in a classic debt-deflation trap , as described by Irving Fisher in his 1933 Economica paper. Yes, it has a very vibrant export sector, and can perhaps claw its way out of the trap – which Greece and Portugal cannot hope to do in time, in my view. In a way that makes the choice even harder.
The question is, should the Dail vote against the austerity budget on December 7, Pearl Harbour Day. And should the next government – with Sinn Fein in the coalition? – tell the EU to go to Hell, do an Iceland, wash its hands of the banks, and carry out a unilateral default on senior debt by refusing to extend the guarantee?
The risks are huge, but then the provocations are also huge. And there is a score to settle. Did the EU not disregard the Irish `No’ to Lisbon, just as it disregarded the first Irish `No’ to Nice? Did it not trample all over Irish democracy? It is not for a British newspaper to suggest which course to take. Both outcomes are ghastly, but as one Irish reader wrote to me: if Eamon De Valera could defy world opinion in 1945 by sending condolences to Germany for the death of the Fuhrer, today’s leaders need not worry too much about scandalizing those who made them swallow Lisbon.
Compliance is traumatic. Default is traumatic. What the Irish have before them is a political choice about what they wish to be as a people, and a nation. Let me finish with a few words by Dan O’Brien, the Economics Editor of the Irish Times, that caught my eye.
“Nothing quite symbolised this State’s loss of sovereignty than the press conference at which the ECB man spoke along with two IMF men and a European Commission official. It was held in the Government press centre beneath the Taoiseach’s office. I am a xenophile and cosmopolitan by nature, but to see foreign technocrats take over the very heart of the apparatus of this State to tell the media how the State will be run into the foreseeable future caused a sickening feeling in the pit of my stomach.”
end
Paul C. Roberts: FBI Creating Police State! Faked Terrorism!
- The Illuminist snakes have taken over America!
Russia Today: Entrapment has become a favorite tool for the FBI; just recently the FBI successfully thwarted a terrorist bombing in Portland, OR, after following the suspect for over a year. However, as these entrapments continue to take place it seems that the US government is simply making up these threats. Former Reagan Administration aide Paul Craig Roberts points out this is all a part of the US government attempting to create a police state to control its citizens.
http://RedactedNews.com
Oregon: FBI Thwarts Their Own Car Bomb Given to Portland Patsy
http://redactednews.blogspot.com/2010…
end

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