The Great Irish Robbery

Details are just out on the Irish "bailout", and they're pretty painful if you happen to work for a living in the Emerald Isle. From where I'm sitting, it looks like the "troika" (EU, ECB & IMF) have literally robbed the Irish National Pension Reserve Fund, which acts as a backstop to all Irish pension funds. It has a value of €24 billion. Of this, eight billion is already "invested" in Irish banks. Of the €16 billion left, the troika has determined that €12.5 billion is to go directly into Irish banks, with the troika providing another €22.5 billion for the banks. Another €50 billion will be lent to the Irish Gov't, which is to provide the banks with sufficient funds to avoid going belly up. All told, the troika has agreed to loan Ireland and her banks €67.5 billion (only after emptying the pension fund) at an interest rate of 5.8%, a rate that is higher than was given to the Greeks six months ago. Given that Ireland is about to enter into a Depression and that the Irish Gov't is being held responsible for the solvency of these banks, this actually isn't nearly enough, especially as Ireland's economy (and thus tax revenues) begin declining.

In the last year or so, the ECB has provided Irish banks €130 billion in loans to keep them afloat. The troika has informed Ireland that this support will be ending as well.

Oh yes.. and the troika demanded Ireland's government enact a new "austerity" budget. Amongst the things included in this budget were slashing the minimum wage, 24,000 job cuts, raises in taxes amongst all income groups and slashes in services provided to the poorest amongst the Irish.

What of the (mainly German and English) bondholders of these banks.. do they get to feel the pain ? Of course not.. 100% guarantees across the board. Restructuring is still not negotiable.

All of this.. why ? To support Irish banks which foolishly lent out waaayy too much to waaayy too many, especially in the area of real estate. But more accurately, it's to protect the German, English and other banks which are very heavily invested in Irish banks. Were the Irish government to simply walk away (ala Iceland) it might cause a catastrophe for some very large banks on the Olde Continent.

If I were in Dublin, I myself would down a few pints of stout and join the protesters. One day soon enough, the people of a nation will have enough of this robbery on behalf of the banksters and put an end to this. They in fact maybe already awakening. On last Thursday, there was an election in Donegal, an Irish county where the Fiana Fail Party of PM Cowen has always won. The result ? Fiana Fail was flailed by a two to one margin by the Sinn Fein Party.. yes the very same party that is arm in arm with the IRA. The day after the election a couple of Sinn Fein MP's met with the IMF delegation.. and told the delegation they were neither needed or wanted in Ireland. The AK47 round across the bow I dare say. Then on saturday, an estimated 75,000 Irish marched against the bailout.. whilst small for America, this in fact amounts to roughly 2% of the population. Here in the States, that would be the equivalent of having six million people march to the White House. Another Irish Rebellion at hand ? If so, it's d@mn sure for the right reasons. This article in the Irish Times says it all: http://www.irishtimes.com/newspaper/opinion/2010/1129/1224284370155.html?via=rel

Update: Having just read an article from Paul Krugman, who gets absolutely everything dead wrong, I find myself in agreement with his post re: Ireland. The End is Nigh !! http://www.nytimes.com/2010/11/26/opinion/26krugman.html?_r=2