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Tuesday, November 23, 2010

Ireland Forever

Ireland, after much resistance, has finally applied for a bailout of over $100 billion for her banks.  The bailout will come partially from the European Union and partially from in IMF.  Extreme austerity measures will be required as terms of the loan.

Although Ireland's banks were no longer as financially stable as they had been prior to the 2008 world wide financial crisis, Ireland said for a long time that she did not need the same kind of bailout that Europe gave Greece   Although the mortgage market in Ireland had taken a similar nose dive to the American market, the government budget was balanced.  In fact she had already taken severe austerity measures, a 7.1% cut in the budget which had slowed down her economy, driven up unemployment, and hampered her recovery, much as similar measures in Portugal were doing.
Ireland's hope was that with a balanced budget the rest of Europe would look with favor on her, and continue to treat her banks with favorable conditions.  But European banks tightened credit terms, leaving Ireland no other choice than a bailout.

Now Ireland will be required to raise her corporate income rate, raise personal taxes, reduce unemployment and welfare and other government budgets.  The result, predictably, will be further depression of the Irish economy.

What is going on in Europe is that Germany and France, and the Central European banks are forcing austerity measures on the rest of Europe, claiming that they worked in France and Germany.  In fact it could be said that they did less harm in France and Germany because of various factors that limited layoffs there and made stimulus less needed.  The austerity measures and the bailout terms are not for the sake of the small European countries, but for the sake of the big European banks, who are seeking profits at the expense of Greece, Ireland, and other countries.

Effectively, at least for a time, Ireland has been re-colonized by France, Germany and England.  Her national sovereignty has been trampled on by the bankers.

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