So The Irish Bailout Isn’t All Roses?
Last night, of course, this was presented as “all done” and “all good.”
DUBLIN – The Green Party in Ireland’s shaky government has threatened to withdraw from the coalition unless Prime Minister Brian Cowen agrees to hold an early national election in January.
Green Party leader John Gormley says he wants the government to forge a four-year austerity plan and pass an emergency 2011 budget next month, then dissolve parliament early in the new year so that Ireland’s shellshocked voters can pick a new government with a strong majority.
Irish Finance Minister Brian Lenihan needs to inject at least 5 billion euros ($6.8 billion) more cash into the country’s two biggest lenders immediately as part of Ireland’s international rescue, analysts said.
But I thought that the bailout was contingent and didn’t represent any immediate need? That everything was ok now, and that there was no actual need for an immediate injection of capital?
And why is it, may I ask, that we are once again bailing out private banking interests with government money? Isn’t the real reason that if they don’t German – and banks in other nations – will suffer losses?
So we now have, once again, taxpayers bailing out foreign banking interests.
How long will the people of the world stand for this?
Why do we stand for this?
We now know that in the United States this mess occurred due to fraud. Citibank’s former Chief Underwriter, I will continue to remind you, testified under oath that by 2007 the bank knew that 80% of the mortgages his business unit was writing were trash.
That’s not an accident, it’s not “unforeseeable circumstances”, it’s not “nobody could have seen this coming.”
Not only did they see it coming they actively participated in doing it and it was an intentional act that continued right up until the banking system basically collapsed.
These people – all of them – need to go to prison – no matter where they are.
These “bailouts” are nothing more than Racketeering and organized Financial Rape, and we are now more than three years into this crap, with the governments of the world all complicit in literally stealing the citizens’ money to pay for the theft that was originally perpetrated on those very same citizens!
Ireland: Bailout Down The Drain?
The government is under siege, with protesters attempting to storm Parliament. More-ominously, however, is that The Green Party appears to have pulled out from their government coalition, which would mean that any budgetary reforms that are as a condition of the bailout could fail.
That, in turn, would trash the entire process.
The EU in turn has said that Ireland is willing to consider “softening” their position on the corporate tax rate. This has trouble written all over it, as much of the “Irish Miracle” has been due to the very low corporate tax rate that dragged a number of corporate headquarters there – including some from the United States. Should changes in tax rates promote corporate flight further serious pressure would be placed on government budgets due to the loss of jobs and thus tax revenue.
The ultimate problem with bailouts is that everyone seems to think there’s a free lunch. There isn’t. You can rob someone to pay someone else, but you can’t conjure up money from nowhere. But bailouts inherently wind up taxing the people who got robbed in the first place to pay off the people who made the bad bets and lost money. When it comes to bailing out banks it gets even worse due to the leverage involved – the banksters keep the money, including their salary and bonuses, while the people get robbed not only in the form of losses on their so-called “safe” investments but then again when they are taxed to fund the bailout!
There’s nothing like getting stuck up at gunpoint and not only losing the hold-up money but then being taxed a second time to pay for the robbery in which you were victimized!
This nonsense has to stop and the banks involved must be taken into receivership, reorganized, and the executives involved removed from their positions, tried and jailed.