Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Ethereum EIP 1559 and Raven Coin - 21st Apr 21
Gold, USDX: The Board is Set, the Pieces are Moving - 21st Apr 21
World Economies Need to Find a Lot More COPPER! - 21st Apr 21
DogeCoin CRASH! Time to Start Mining BOODGIE Coin! Crypto Mania 2021 - 21st Apr 21
Pausing Stocks and Gold Fireworks - 21st Apr 21
Precious Metals and Miners Start of New Longer-Term Bullish Trend - P2 - 21st Apr 21
Looking For A Mortgage Broker? Here Is How To Hire One - 21st Apr 21
Amazon AMZN Stock PRIMEDAY SALE! Trend Analysis - 20th Apr 21
Stock Market Sentiment Speaks: You May Not Believe My 2021 Targets - 20th Apr 21
Stock Market Phase Two Projection - 20th Apr 21
Are Precious Metals & Miners Starting A New Longer-Term Bullish Trend? - 20th Apr 21
Inflation: First the Gain, Then the Pain… - 20th Apr 21
8 Stock Market Indicators in 1: Here's the Message of the Panic/Euphoria Model - 19th Apr 21
Gold - You Can Win a Battle, but Still Lose the War - 19th Apr 21
Will Interest Rates Rally Further Push Gold Price Down? - 19th Apr 21
Gold Fireworks Doubt the Official Inflation Story - 19th Apr 21
YuanPay Team Discuss The Process Of Crypto Diversification - 19th Apr 21
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Ireland Still Refuses To Contemplate Leaving the “Imperial” Euro and Joining a “Mediterranean” Euro Zone

Politics / Euro-Zone Nov 23, 2010 - 06:48 AM GMT

By: Christopher_Quigley

Politics

Best Financial Markets Analysis ArticleOn Thursday 18th 2010 The IMF arrived in the Emerald Isle. What a sad sad day for the proud people of Ireland. Following 300 years of armed struggle the resident government have replaced English masters with the Continental variety. However the method of usurpation this time was not guns and bullets and starvation but economic and financial prowess.


To the victor goes the spoils.  Professor Honohan Governor of the “Irish” central bank and his associate Mark Elderfield, the resident bailiffs of the Continental finance houses, already have a list of the target assets compiled courtesy of  “An Bord Snip” ( A committee set up to identify where Ireland’s creditors can get funds quickly in the event of default). On this schedule of valuations are such national jewels as: An Bord Gais, C.I.E., Coillte,  The Dublin Airport Authority, The Dublin Port, R.T.E., The National Transport Network, The ESB power grid, The National Lottery etc. etc. You get the picture. These assets belong to the Irish nation. Some will soon belong to foreign bondholders.

The crisis which brought the IMF to Ireland shows no signs of abating. As we speak the full extent of the problem has not been fully comprehended. There are in effect 6 levels to the “credit” fiasco in the Euro zone:

1.        Insolvent Property Development Lending
2.        Unsustainable Annual Government Deficits
3.        Sovereign Debt Credit Rating Collapse
4.        Insolvent Consumer Debt Lending
5.        Insolvent Mortgage Debt Lending
6.        “Off Balance Sheet: Mark To Market” Asset Value Collapse

All the above “problems” need a solution. The Euro is on the verge of collapse and we are still only half way through recognising the crisis, never mind solving it. As more and more countries become affected (as we move down the food chain of the “crisis” schedule above) the options open to the mandarins at the ECB/IMF will be fewer and fewer. Eventually it must be recognised that the only way to solve the banking crisis in each country is to find a way to restore growth. When the deflationary cul-de-sac of austerity is comprehended it will finally be accepted that the only real option left will be national currency devaluation. This measure would save the tourist industries in Spain, Greece and Portugal and return competitiveness to Italian and Irish manufacturing.

The hapless Prime Minister of Ireland Brian Cowen, like a rabbit in the headlights, refuses to face the inevitable fact that he has led his country to ruin through utter incompetence. One of the saving graces of ignorance is that your stupidity does not possess the intelligence to understand that it is stupid. It’s what psychologists call:  “a closed  self-deception psyche.” The vernacular manner of formulating this psychic state is; “ignorance is bliss.” Or as our great Lord expressed it so passionately in prayer on the mound at Golgotha; “father forgive them for they know not what they do.”

Mark my words Ireland will leave the Imperial Euro (IE). That is my prediction. If not now then in five or ten years time. It is inevitable. Economic law will demand it. Divorce is in the offing.  If we had true leadership in Ireland they would bite the bullet and file the papers now. A new “Mediterranean Euro Zone” (ME) should be conceived involving Ireland, Spain, Italy and Portugal and Greece. This “ME” is needed to pool resources to ensure that the countries leaving the “Imperial Euro” (IE) can get out of its hard currency loans without bankrupting French and German banks. Not to do so would be disaster. Argentina saw this problem and faithfully managed to “humble” American dollar bondholders and so saved their economy and their nation. Hungary failed to identify this issue and is now repaying hard Swiss and “Imperial” Euro loans in a significantly devalued national currency. As a result its economy is a structural basket case.

Why is it important that Ireland leave the “Imperial” Euro? Well the main reason is that, as mentioned, through simple devaluation we can restore competitiveness to our economy without applying crippling IMF deflationary “austerity measures.” Of course to prevent inflation and its concomitant problems undermining future growth of the nation, real enterprise with real wealth benefits must be promoted. The civil service mentality of pay without production must be finally put to rest. Economic survival demands it. The joust with European socialism must cease forthwith as it has brought us to the brink of national collapse.

If Ireland chooses to stay in the “Imperial” Euro and tries to continue to belong to a club it cannot afford Brussels’ price will be economic suicide for the proud Irish nation. IMF austerity cuts over the next five years are going to crush Irish GDP through budget & expenditure cuts and tax hikes. In addition none of its banks will remain native owned. It is also axiomatic that many of its prized semi-state assets will be sold off to foreign operators at bargain basement prices.

When Ireland Inc. finally leaves the IMF/ECB bankruptcy process it will be a shadow of its former self. If Ireland as a Nation complies with this liquidation without a strategy for future growth it will become a Nation in name only within a decade. The day a leader emerges in Ireland who formulates a credible “Mediterranean” Euro strategy with associated close tactical links to the Sterling area is the day a new dawn will have arrived. The past is indeed dead but we await a visionary who will provide a workable concept of the future. The longer the Irish psyche remains bound to the current mis-formulated Euro model the deeper the hole will become for Ireland. It is time to stop burying ourselves. It is a time for ladders not shovels.

By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin and holds a Batchelor Degree in Accounting and Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in 1989. in Belmont, California where he lived for 6 years. He developed the Wealthbuilder investment and trading course over the last decade as a result of research, study, experience and successful application. This course marries Fundamental Analysis with Technical Analysis and focuses on 3 specific approaches. Namely: Momentum, Value and Pension Strategies.

Mr. Quigley is now based in Dublin, Ireland and Tampa Bay, Florida.

© 2010 Copyright Christopher M. Quigley - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules