November 16, 2010
Due to the fact Ireland is part of the European Union, it can’t do what the U.S. is doing under the auspices of the Federal Reserve — crank up the presses and print its way out of the manufactured debt crisis. Irish currency cannot be devalued.
Austerity was advertised as the ticket to Ireland’s budgetary woes, but this bitter medicine has made the situation worse.
“The people of Ireland having endured over a year of austerity on the promise that it was all necessary to suffer pain today by cutting public spending so as to reduce the annual budget deficit to sustainable level for economic gains tomorrow,” writes Nadeem Walayat. “Instead the exact opposite is taking place as the Irish economy contracts due to economic austerity whilst its bankrupt banks are sending the countries debt and liabilities soaring, thus resulting in a far worse budgetary position than where Ireland was before the austerity measures were implemented as the bond markets are waking up to evitable debt default which is sending interest rates demanded to hold Irish debt soaring to new credit crisis highs.”
Meanwhile, the IMF and EU wait in the wings like hungry vultures. “The danger is that if this Government acquiesces to the EU’s offer of help, the ‘payback’ to the EU will be to control Ireland’s taxation policies,” writes Aindrias Scannell for the Irish Independent. “This Government is weak and will cave in to demands from the EU ‘bully boys’ — remember Lisbon 2: Ireland did not deliver and was told to try again.”
Ireland has yet to crawl to the IMF with hat in hand. IMF boss Dominique Strauss-Kahn said over the weekend that Ireland can manage its fiscal affairs and the bankster loan sharking operation has yet to receive a request for aid. Strauss-Kahn said it is “business as usual” in Ireland, in other words the IMF will see how Ireland fares at the hands of the European Financial Stability Facility. Ireland has not officially applied for EU aid.
Belgium and Portugal are not far behind. “The price that these countries pay for being stuck in the Euro single currency is that they cannot devalue to try and gain some competitive advantage for their economies and therefore try and grow and inflate their way out of a high debt burden that stifles economic activity,” explains Walayat.
Ireland, Belgium and Portugal cannot devalue their way out of debt and budget crises and move to a “new sustainable equilibrium,” as Walayat calls it, within a globalist euro block that demands “greater competitiveness by means of reduction in costs i.e. by deflating wages.” Ireland is caught between a rock and a hard place. If it fails to impoverish its citizens, the banksters will hit it with higher interest rates and a greater debt burden. The idea is to turn not only Ireland, but the entire world into a third world slave plantation.
The IMF and World Bank played the same game with Latvia it played with much of the third world. Nathan Greenhalgh is the editor-in-chief of the Baltic Reports news website and he explained that “the IMF has primarily insisted that Latvia continue with deep cuts to meet agreed-upon GDP deficit percentages. It’s been a bit of good cop, bad cop with the World Bank praising Latvia’s resolve to cut while the IMF insists it isn’t doing enough and must cut more.”
In other words, the IMF insists more people must be thrown into abject poverty in order to solve things. Retirement, pensions, education and other public services are to be deep sixed in order to pay off debt created out of thin air by predatory banksters.
In 2009, the Center for Economic and Policy Research discovered that a majority of countries on the hook to the IMF have experienced economic slowdowns, as planned. CEPR suggested more funny money be doled out in the form of IMF SDRs (Special Drawing Rights) and the “harmful conditions attached to other IMF lending facilities” be eliminated.
Not a chance. Might as well wish for a Christmas pony. Harmful conditions are part of the deal.
The Latvian government predicted 5% contraction in 2009 but the contraction in that year was actually 18%. In other words, the EU/IMF deal signed in December of 2008 made things worse — far worse.
“In the last two years, the austerity measures in Latvia’s budgets have seen massive cuts in the health and education sectors. The number of hospitals has been cut from 59 to 42 and 58 schools have been closed down,” writes McMorrow. “The unemployment rate tripled, hitting a peak of 22% in January before it fell back to 16% in June.”
As Ireland balks at submitting to the EU and the IMF, a far larger economic train wreck looms. “The only solution is for a costly European Union / ECB / IMF bailout of Ireland as they cannot allow the current crisis in Ireland to trigger a complete bailout of ALL of the PIIGS [Portugal, Italy, Ireland, Greece and Spain] which could cost as much as Euros 2 trillion. Therefore the Irish debt crisis has the potential to turn into the mother of all bailouts where today’s talk of billions turns into trillions if decisive action is not taken to finance the Irish budget deficit before they triggered a PIIGS debt collapse Euro-zone wide bailout,” notes Walayat.
Meanwhile, Ireland’s fellow PIIGs are furious. “Spain’s central bank governor, Miguel Angel Ordonez, lashed out at Dublin on Monday, calling on the Irish government to halt the panic and take the ‘proper decision’ of activating the EU-IMF bail-out mechanism,” reports the Telegraph.
But of course. It is always the “proper decision” to impoverish your people, at least according to the global elite.
Kurt Nimmo edits Infowars.com. He is the author of Another Day in the Empire: Life In Neoconservative America.
This article was posted: Tuesday, November 16, 2010 at 11:00 am