European governments sought to quell the market turmoil menacing the euro, handing Ireland an 85 billion-euro ($113 billion) aid package and diluting proposals to force bondholders to bear some cost of future bailouts.
Yeah, right. Incidentally, the interest rate on that package is 5.8%. That means that if my math is right this has larded up $1,473 per year in interest costs on every man, woman and child.
This of course has to be paid each and every year, which means taxes are going up and government services are going down – by a lot, given that there’s plenty of people who don’t work in Ireland.
How any government gets away with this sort of thing is beyond me. But they all have thus far – our banks, Greek banks, now Irish banks. All ripped off the people with false claims of “growth” and “prosperity” and when exposed they then get the politicians to take their losses onto the public balance sheet and bail them out, effectively charging the citizens for the costs of their original robbery!
The market is not impressed, and yet the market is the alleged reason this is being done. To “stabilize” the market. To provide “confidence.”
Yet CON is the root of CONfidence, and conned is exactly what you’ve had served up – by Paulson, by Geithner, by Congress and by our President, both past and present.
People keep saying that while these actions might have been “unseemly” and “unacceptable” they weren’t illegal. They keep forgetting that operating a bank is a privilege granted by the government, not a right, because banks inherently trade on the credit of the sovereign state behind them.
Yet we the people of this nation continue to allow our government to pull this crap. We do it repeatedly despite plenty of evidence that we’re getting screwed repeatedly. Asset “inflation” is thought of as good, but it’s really bad – if you want to buy a house you want it to be cheap, not expensive, just as you do for your DVD player, computer or television. We allow ourselves to be scared into believing that Deflation is the “bogeyman” even when we’re talking about deflating previous inflation, and even though anyone with a fifth-grade understanding of math can easily determine that the alternative is literally impossible – which means attempting it won’t end in happiness and smiles but rather in collapse and tears.
Never mind that the market doesn’t care if you believe in the candy-crapping unicorn or not. This morning it has “moved on” and blown spreads wide on Portugal and Spain, and will continue to do so until the truth is recognized.
We are choosing only how long we would like to avoid what has to happen, and how much damage we’re willing to sustain through that waiting – damage that is compounding the longer we wait – not whether we can succeed on the path we’re on.
The possibility of success there is not determined by wants or desires, but by what can be done, and the simple fact of the matter is that the path our government, and those of Europe, are on cannot lead to success.