First of all, here’s a picture of the protest against the austerity program of the Irish government.
I want to show the austerity money going to the banks. I wanted to find a simple pie chart that put social spending next to interest payments, next to the bank bailout.
I was defeated by the Gaelic Government. All I found was this wonderful government document.
Don’t bother reading it. It just looks like this:
Copyright Irish government
Now, I admitted that I don’t know. Next, I start asking questions: For example, how much did it cost the Irish government to nationalise the Anglo Irish Bank?
Answer: €44.4 billion and growing.
Here’s a 1-2 punch. (Think of yourself being pummeled by my writing)
The Irish underestimated the severity of the losses for the past two years. In September, the government said that the bank bailout may cost as much as 50 billion euros. NAMA says it will absorb an estimated 73 billion euros of loans from the banks at a discount of about half of their value.
Track to today’s news that € 67.5bn of IMF and international aid plus €18bn of Irish pensions and cash.
(The remaining €17.5bn of the program will come from Ireland (€12.5bn from the National Pension Reserve Fund –currently EUR 24.5bn -and €5 billion from the state’s cash reserves).
So is the Irish government borrowing money to pay for the 50 billion euro bank bailout? How the hell should I know? That’s what it says though.
This newspaper ran a poll that said a majority of people want a DEFAULT. Yes, A DEFAULT on the bank bailout. That means Irish banks would have to bail themselves out or ask their bondholders to take a haircut.
Don’t listen to me. Listen to Charles Hugh Smith:
When a nation such as Ireland is running a State deficit equal to 32% of GDP, austerity cannot generate the stupendous surpluses needed to make good the vast sums which are already lost.
The Irish economy is equal to Minnesota’s economy.
GDP of Ireland
GDP of Minnesota
If the IMF package is €85bn How could a smallish economy pay back billions of dollars?
By signing the pension fund over to the banks. IMF-tastic!
ALSO FORCED ON THE IRISH
Forced IMF approval of future Irish budgets:
The Irish Examiner took the same line, saying Ireland would be “crippled” by interest payments of ten billion euros a year.
You know, I didn’t need to give a racist Irish joke. The Government of Ireland is a Joke at the expense of the people of Ireland. It’s funny because it’s the British banks that get bailed out:
By supporting the Irish government and their banking system, we might be preventing some British banks from suffering financial pain. Both Lloyds Banking Group and RBS appear to have significant exposure to Irish loans.
In the case of Lloyds, around 44% of their ‘Irish book’ of £26.7bn consists of impaired loans. RBS also has significant exposure to Ireland, through their Ulster Bank division, with a total book of over £50bn.
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“No Country For Young Men” a reference to the Unemployment in Ireland