by Mish Shedlock in the USA
IMF’s Trojan Horse Gift to Ireland
I believe we have all heard the story and know how it ends.
Iceland is No Ireland
Inquiring Irish minds just might be interested to see how Iceland fared after they told EU bankers to go to hell. For the answer, please consider Iceland Is No Ireland as State Kept Free of Bank Debt
Iceland’s President Olafur R. Grimsson said his country is better off than Ireland thanks to the government’s decision to allow the banks to fail two years ago and because the krona could be devalued.
“The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton today. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”
“How far can we ask ordinary people — farmers and fishermen and teachers and doctors and nurses — to shoulder the responsibility of failed private banks,” said Grimsson. “That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”
Vote the Bums Out and Tell the EU and IMF to Go to Hell
Unfortunately, the idiots running Ireland’s government, especially Minister Brian Cowen, don’t see it the way Iceland’s president does.
However, Iceland’s government did not see it that way either, but the citizens of Iceland took matters into their own hands and voted the bums out, rejecting “Icesave”.
Regardless of what deal Cowen signs, I see no reason it need be binding on the next Irish Parliament. Indeed, I recommend to to citizens of Ireland that they firmly tell their representatives that if they vote for Cowen’s proposed budget, they will be voted out of office.
That may be all it will take to stop this nonsense right here right now. Should I be wrong, the remedy is simple: Vote the bums out and vote in a Prime Minister and Parliament who will tell the IMF and EU to go to hell.
Just Who The Hell Do You Think You Are?
Nigel Farage in a speech before European Parliament says “The Euro Game Is Up… Just Who The Hell Do You Think You Are?”
Words alone cannot describe that video. Please play it.
ANY Rate is Onerous
In case you missed it, please consider In Rare Agreement with Krugman; Onerous “Bailout” Rates of 6.7% Denied; Don’t do Stupid Things; “Tell the EU and IMF to Shove It!”
All these questions “Is the rate 4.7%, 5.2%, or 6.7% and if so for how long and on what portion?” are complete silliness.
ANY Rate is Onerous.
Except for those who participated in the property bubble (and they will be adequately punished), the people of Ireland are not at fault, at least in general.
Should Irish Prime Minister Brian Cowen manage to hang on long enough to get the votes for an onerous bailout, I would encourage Irish voter to elect someone who campaigns on a promise to renege on the deal and default.
Irish citizens cannot afford to rescue German, UK, and French banks stupid enough to bet on bubbles in Ireland. It should be the creditors’ problem not the problem of Irish citizens.
There is much more in the article so please give it a look if you haven’t done so already.
Structural Reforms Needed
Bear in mind Ireland does need structural reforms. Those reforms must include some sacrifices such as lower minimum wages and reduced public sector employment.
However, it would be foolish for Ireland to raise corporate income taxes or pay one penny to bail out UK, German, French, or US banks.
Iceland told its creditors to go to hell and is better off for it. Ireland can do the same.
With thanks to Mike “Mish” Shedlock