Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Stock Market Time to Go All-in. Short, That Is - 19th Oct 17
How Gold Bullion Protects From Conflict And War - 19th Oct 17
Stock Market Super Cycle Wave C May Have Started - 19th Oct 17
Negative Expectations, Will the Stock Market Correct? - 19th Oct 17
Knowing the Factors Affect your Car Insurance Premium - 19th Oct 17
Getting Your Feet Wet In Crypto Currencies - 19th Oct 17
10 Years Ago Today a Stocks Bear Market Started - 19th Oct 17
1987 Stock Market Crash 30th Anniversary Greatest Investing Lesson Learned - 19th Oct 17
Virgin Media Broadband Down, Catastrophic UK Wide Failure! - 19th Oct 17
The Passive Investing Bubble May Trigger A Massive Exodus from Stocks - 18th Oct 17
Gold Is In A Dangerous Spot - 18th Oct 17
History Says Global Debt Levels Will Lead to Another Crisis - 18th Oct 17
Deflation Basics Series: The Quantity Theory of Money - 18th Oct 17
Attractive European Countries for Foreign Investors - 18th Oct 17
Financial Transcription Services – What investors should know about them - 18th Oct 17
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17
Q4 Pivot View for Stocks and Gold - 14th Oct 17
Gold Mining Stocks Q3’17 Preview - 14th Oct 17
U.S. Mint Gold Coin Sales and VIX Point To Increased Market Volatility and Higher Gold - 14th Oct 17
Yuan and Gold - 14th Oct 17
Tips for Avoiding a Debt Meltdown - 14th Oct 17
Bitcoin Hits New All-Time High Above $5,000 As Lagarde Concedes Defeat and Jamie Demon Shuts Up - 13th Oct 17
Golden Age for GOLD, Dark Age for the Stock Market - 13th Oct 17
The Struggle for Bolivia Is About to Begin - 13th Oct 17
3 Reasons to Take Your Invoicing Process Mobile - 13th Oct 17
What Happens When Amey Fells All of a Streets Trees (Sheffield Tree Fellings) - Video - 13th Oct 17
Stock Market Charts Show Smart Money And Dumb Money Are Moving In Opposite Directions—Here’s Why - 12th Oct 17
Your Pension Is a Lie: There’s $210 Trillion of Liabilities Our Government Can’t Fulfill - 12th Oct 17
Two Highly Recommended Books from Bob Prechter - 12th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Ireland Debt Crisis and Economic Austerity

Politics / Euro-Zone Nov 25, 2010 - 08:02 AM GMT

By: Kevin_Geary

Politics

As details of the worst austerity budget in memory emerged ahead of the budget debate on Dec. 7th, This was overheard at the Irish Stock Exchange:"We don't know where the money went," said the trader, half in jest, but half in earnest. "We've been debating it all morning. Cars, flat-screen TVs, Bulgarian properties? Everyone round here used to have a Mercedes. The whole country was a pyramid scheme."


Well, not quite. The Irish government actually only had a deficit of 12% of GDP, the lowest in the EU, just a couple of years ago (compared to 40% for Germany and 60% for France!). The coffers of the Irish government were pretty full and the government wasn't overspending. The truth of the matter is that the Irish banks went nuts, lending money to developers without a thought. The British, French and German banks bought up the debts like crazy, without a thought for the possible consequences of a downturn. Now, Ireland is having to borrow huge sums of money, and impose draconian measures on its people, essentially impoverishing them, all because the banks lied about the catastrophe repeatedly, and the British, French and German banks holding their crappy loans wanted to be paid at 100 cents of the euro, for now worthless shit.

Why, pray tell, don't the Irish tell the banks to bugger off, declare them all bankrupt and reorganise them in bankruptcy. And why are the bankers in England, France and Germany going to be paid in full, for now worthless pieces of shit, whilst the government is planning to lower the minimum wage on the backs of the poorest Irish?

There is, and was, no need to bail out the Irish government, it's the Irish banks (and all the foreign debt holders who are being bailed out), and the Irish are being told to just sit down and be kicked in the groin and have their pockets robbed for years to come to pay for worthless debt for which the bankers should be taking a shower.

The sooner there's a real revolution, and an overthrow of these greedy, irresponsible bankers, who simply made bad business decisions, and who should accept the consequences (i.e. bankruptcy) and move on, the better.

We should remember that it was "reparations," both to banks and foreign governments, in the 30s, that brought Germany and Italy to their knees economically, that led to the rise of Facism in Europe. Don't think that can't happen again.

One more thing. Hitler actually overcame the Great Depression in Germany by issuing government, instead of central bank, money. Indeed, had he not been a homicidal expansionist megalomaniac, and simply confined himself to his economic rescue of the money supply, he'd be thought of today as one of the greatest leaders in German history. He took the bankrupt German economy, which was the worst in Europe and, within four years, turned it into the richest economy in Europe and indeed the world at the time, by basically telling the bankers to bugger off, and printing his own (interest-free) money. Maybe it's time for the Irish to consider doing the same, and let the banks go belly up, instead of the people.

By Kevin Geary

www.kevingearyart.com and www.kevingearyportraits.com

Kevin Geary is an artist who lives in Sedona, Arizona. He was the youngest political cartoonist on the Financial Times at the age of 19. He had his first one man show at 20, opened by the prime minister of Great Britain, Harold Wilson. He has had over 60 exhibitions of his work; has work in several major museums, including the National Portrait Gallery in London, and his work has sold at major auction houses, such as Christie's, in London, Whyte's in Dublin and Doyle in New York.

He has followed politics, history and economic history for many years, and has also written about it elsewhere online. He predicted this depression long before it happened, timed the collapse of the stock market in June last year, long before it happened, and his stock picks have often been very accurate. The four stocks he picked on January 1st, 2009 to do well (Amazon, Apple, Baidu and Google ), are all up from the beginning of the year. He does not offer specific public advice about stocks, but he has written from time to time about long and short term trends in the political and economic realm.

© 2010 Copyright Kevin Geary - 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 losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Diarmuid Harrington
26 Nov 10, 17:59
Kevin Geary Irish Bond Holders

Dear MO,

Mr.Kevin Geary is right ! Lets kick the can down the road a little more. Bond holders should take a little bit of the burn too.

Lending Money is never foolproof.This seems easy money for the Bond Holders. Every one should takes a little pain. But some of the principles should go to Jail. Why should the Bond Holders not become shareholders ? Share the pain.

Sincerely,

Diarmuid Harrington

If the Irish were to offer a new currency I think we should call it "The Clowd" with a Daffodil as it's emblem. Just think what Ireland would look every Spring


Post Comment

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

Catching a Falling Financial Knife