Posted on 11/12/2010 5:02:07 PM PST by JerseyHighlander
Ireland is teetering on the edge as their budget woes appear insurmountable and bond yields and credit spreads blowout to new highs. It looks increasingly likely that Ireland will have to tap into the EFSF. Angela Merkel, however, is not prepared for taxpayers to take all of the losses:
It’s a sad state of affairs when a foreign central bank and German Chancellor decide the fate of the Irish people, but this is the mess that single currency systems create. Quite honestly, it’s shameful that Irish politicians would even allow such a thing to occur. They have ceded their monetary sovereignty and destroyed their ability to protect their people. The ultimate role of any state should be to protect its citizenry at all costs. That is not the case in Europe and it is nothing short of inhumane.
As I’ve repeatedly stated, there is a moral hazard here that is beyond absurd.
There is a famous statue of James Larkin on O’Connell Street in Dublin. Inscribed on it are the famous words he once spoke:
“Ní uasal aon uasal ach sinne bheith íseal: Éirímis.
In english it reads:
“The great appear great because we are on our knees: Let us rise.”
The Irish people are on their knees. And for now, bankers and politicians are keeping them there. Let’s hope they rise.
(Excerpt) Read more at pragcap.com ...
“There was a time when Ireland, and not very long ago, was seen as an island of truly free enterprise in an ocean of socialism.”
When did it change? I thought that Ireland had low tax rates, reasonable regulations, and lots of individual initiative. Did it catch the Euro flu?
This type of mess is coming here unless we reform. I have little hope that any reasonable reform will occur. The rats can block any reforms. They still have the power to buy elections. They have passed so much terrible legislation that it is not enough to merely stop additional damage. We must unroll the damage already done.
what would a default look like?....would that ever happen here?
LOL, I thought the title said, “IT’S TIME FOR THE IRISH PEOPLE TO RINSE”.
All that Silicon Bog bull was empty storefronts and a couple of kids playing on the internet. Erin Go Broke.
People and countries (like China) with savings in US government bonds would see them wiped out. It would be an extremely unpopular thing to do because those who have most of their saving in cash or bonds would see their savings wiped out over night, pensions would also be devastated, and you would see violent protests from those affected, and there would be political consequences, at home and abroad. In addition, it would be virtually impossible for the government to borrow money again any time soon without paying a usurious amount of interest (although this may be a good thing in the long run). Several countries, like Argentina, have defaulted before, but an EU country doing so would send shockwaves around the world, if the US did it, as the producer of the world’s reserve currency, we would see nothing less than financial Armageddon and the rise of a completely new era in world affairs.
Economic dominance would be handed over to China instantly, as much of America’s economic dominance is based on her being the source of the USD, defaulting would destroy the USD’s status, and the US would have to compete on a more level playing field with the rest of the world. Like I say, the consequences are not good, but the alternatives; Massive, massive cuts (of the kind that would make anyone who isn’t a purebred libertarian squeal) are either politically unfeasible, or hyperinflation, which would be even more destructive and ultimately, futile...
I must confess I do not understand the Irish at all. If the ones in Ireland are anything like the ones in America, Ireland should be independent, prosperous, capitalistic, pro-life, devout and renowned for its literature and music.
Instead, there are Irish castles costing less than a dump in Pittsburgh. :(
“Ireland should be independent, prosperous, capitalistic, pro-life, devout and renowned for its literature and music.”
That’s like: California should be independent, prosperous, capitalistic, pro-life, devout and renowned for its literature and music.
The god damn EU didn’t spend their money and rose their dept. It was the irish them self. They spent money for subsidies to attract enterprises, but they didn’t tax anybody. Where should have the money for these subsidies come from ?!?
Well there you go. People are swell as individuals but in the collective they stink. I don’t know a single Irishman I don’t like. Yet there’s a whole country full of them over there. Go figure.
You’re absolutely right, but the EU is damned as is the US to their debts. There is no difference in a failing state like California in the US compared to Greece in the EU. The next one will be either Portugal or Ireland. Who will be next on the west side of the pond ?
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