Ireland QuEUing for more Bailout!

June 5, 2012

News today Wolfgang Shauble, German Finance Minister, today in telephone call with Enda Kenny, an Taoiseach, stated that giving any relief on our bank debt, would send ‘the wrong signal’. Enda had rung him to personally deliver news of our appeasement voter ‘Yes’ to the Fiscal Treaty.

It was very foolish of Enda to expect Wolfgang on hearing news of our ‘Yes’ vote to celebrate with an announcement that write down of our bank debt was in the pipeline. Sceptics such as this writer had signaled a ‘Y’ vote would send the wrong signal to Germany, that we were happy in our austerity nappy! Germany is not willing to give up its gains made through its lending to Ireland’s no brainers!

Why would Wolfgang not have announced debt writedown to odious ELA/PN of IBRC Irish casino banking malevolent debt foisted on Irish taxpayers, before the Referendum, in order to cull more ‘Y’ votes from the ‘No’s’? That is, if there was ever the remote possibility Wolfgang would require German banks to share in the losses foisted 100% upon Irish taxpayers.

Unfortunately, a litany of incompetence from Irish political leaders regarding banking matters is par for the course. Enda has been foiled and fooled again by banking interests.

We await the news of ‘growth’, ‘stability’ and ‘investment’ the totem of Enda’s ‘Yes’ campaign to come. There will be propaganda heralding every new job of 5 or more. But denial of the real facts of our meltdown is not only a political phenomenom in Ireland; it is also a feature of our economics profession in Ireland.

As a poster on Irisheconomy.ie eager to digest news on economic matters from an Irish point of view over the past 12-24 months, I contributed to many a debate on site content but have decided to move on post referendum in protest at the generally poor quality of intellectual probity displayed by many of our so-called ‘leading economists’ who’ve distinguished themselves in our referendum campaign, as fiddlers on the Irish Titanic. One should not be surprised to learn many of these economists failed to signal the dangers of our property meltdown bust.

Its hard not to come to the conclusion such economists doing very well out of our property bubble, Croke Park and membership of the euro, at all costs want the party to continue. Its time for me to move on and to follow thinking on economic matters I’ve more respect for.

I would like to give tribute to the intelligence and probity and wisdom of the No campaigners on Irisheconomy.ie who mounted a Herculean and Thermopylaean task in the face of Government propaganda throughout the Referendum campaign.

It was ironic support for the ‘No’ position came not from within Ireland eg in RTE/the media, which gave poor delivery of the issues and information people required to make an informed decision, but from abroad from Nobel prizewinning economists such as Prof Paul Krugman, Professor Joe Stiglitz, and others such as Nouriel Roubini, Martin Wolf, Professor Michael Hudson. Some eg Professor Krugman explicitly advised us to vote ‘No’. For example, Hudson in this clip demonstrates the need for debt writedown, lynch pin of Irish ‘No’ position.

http://www.youtube.com/watch?v=gX5RHhX8E2k

So, Ireland in the midst of a deep recession, with a Government intent and busy turning this country into another economically devastated European version of Latvia, the Spanish economy now on the point of collapse, Irish political class hoping a deal bailing out Spanish banks directly will retrospectively bail out Irish banks with Irish banks requiring another €5bn + bailout, its time for me to enter silent mode for the Summer months.

Financial and fiscal reform need to go hand and hand, according to Hudson; debt retructuring based on ‘ability to pay’ must be built into a post crisis resolution of a dysfunctional financial system.

GDP of Latvia has fallen 25%, massive emigration, a broken economy; Ireland has been led by an incompetent political class to join Latvia in the debt/bailout queue.

No, Enda, Germany is not going to bail out ‘the best boy in the class’, please ring Wolfgang, if you don’t believe me; or, if you want to give him a good laugh.

Oh, you bin there, already done that!

We’re done.

End

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