Monday, November 22, 2010

Is the Irish "Bailout" EU's Groping Event?

It took groping by TSA's agents to slightly nudge awake Boobus Americanus out of its sound sleep and realize that government is creeping into more parts of our lives and closer to our orfices. And that this might be something to object to. In a way, the same awakening may be occurring in the EU after the "bailout" of Ireland.

It's important to note that Ireland was not in immediate financial danger. They were, and are, over their heads, but they had some time. They didn't need to raise any money immediately. In other words, there was no immediate crisis where all night meetings needed to be held for fear of Irish financial collapse.
John Carney explains:
On the face of it, it was a very strange dynamic. Irish government officials had been insisting that they were well-funded through at least the first quarter of next year. Without any current need to roll debt, Ireland could afford to be indifferent as its spreads blew out. The yields on Irish debt may have blown out, but it wasn’t costing Ireland anything.
So who was in panic? Here's Carney again:

The pressure for a bailout of Ireland did not come from Ireland itself—it came from Eurozone officials. If anything, Irish Finance Minister Brian Lehnihan’s announcement over the weekend that Ireland would seek a bailout was a concession to its European Union friends.
 In  other words, it was the banksters who needed Ireland to bend, buckle and seek EU/IMF "help":

...much of Ireland’s debt—both its sovereign debt and the debt of its banks—is held by many of Europe’s largest financial institutions. The continued downward pressure on the market value of Ireland’s debt was causing balance sheet issues for these banks. Many of Europe’s banks had written credit default swaps on Irish debt, which was draining cash. Finally, the banks were finding it increasingly expensive to borrow against Irish debt—that is, other banks would not lend money in exchange for Irish debt as collateral...
It's one thing, though very questionable, for the banksters to come in via the EU and IMF and bailout Greece, when it couldn't pay its immediate debt, but its an entirely different thing for the banksters to come in and require a country to bend over when they are current on all debt.

Once this is clearly understood by all in Ireland, and the word is being passed through the populous by the minute, there will be hell to pay for Irish government officials who signed off on the deal and any EU/IMF officials anywhere in the country. Further, the remainder of EU will be watching, listening and becoming even more aware that this is all about the banksters.

The banksters may have tried one grab too many.

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