Madam, – The world and its mother know that we are engaging with the EU on the matter of an impending bailout, yet it continues to be denied. You’d almost think that our Government doesn’t want the EU to come in and sort out its mess – is it perhaps afraid of what might come to light if and when this happens? – Yours, etc,
Madam, – Much of the recent news frenzy as to if, or indeed when, Ireland would accept the much touted ECB/IMF bailout can be readily explained.
As we stand today, we are in a very real position to default on our bank bonds without answering to anyone but the markets. It would be tough but it has been done before, eg Brazil defaulted only a few years ago and is now a star of international markets. Anyone that lent money to Anglo did so without any due diligence, that is the risk they took.
Indeed, any conspiracy theorist would accept that it may well be our current creditors that are spreading the rumours about us engaging in bailout discussions. The media/political frenzy is forcing EU member states to put pressure on Ireland to give in and “socialise” the debts within the euro zone, thereby protecting current bondholder interests.
After a bailout, instead of answering to the markets, we would owe that money to our European peers. As a small country our new European creditors can and will exert massive influence on Ireland in ways that our current creditors cannot. One would guess one of the pawns on the table would be our enviable 12.5 per cent corporate tax rate. We would be moving from an extremely tight situation, into a bottomless black hole. – Yours, etc,
Madam, – Knowing how things work in Ireland, it is unlikely we will ever get an honest answer as to why Brian Cowen and Brian Lenihan thought it right, ethically, morally or politically, to give a blanket guarantee to the entire Irish banking system in the middle of the night, or why Cabinet members literally couldn’t be bothered to get out of bed to ensure the decision being taken was the correct one. The consequences of that decision, which we have to assume was made to protect those with whom Fianna Fáil is financially compromised, are now becoming clearer. Yet, Mr Cowen and Mr Lenihan still refuse to face the reality of what they’ve done, and have done nothing to make banks provide verifiably accurate data or to give the Opposition full access to the State accounts. They are allowed peddle the myth that Ireland is “funded” until the middle of next year, conveniently not mentioning that funding is just more debt that has to be paid back.
So, instead of structurally reforming how the country is financed and how it spends its money, Mr Cowen and Mr Lenihan seem to think the solution is to rack up as much debt as possible and, by the stage that time- bomb explodes, they’ll have walked away with their golden pensions (so what do they care?).
It is truly astounding that the bank guarantee, at the stroke of a pen, transferred more debt to the Irish people than Cromwell transferred from them. How much more is the bunker mentality of Mr Cowen and Mr Lenihan going to cost us? How many more lost jobs, homes, suicides and broken families? We can only hope the EU has the sense to end this farce, and make Mr Cowen and Mr Lenihan face the reality that Ireland is broken and they are responsible, before they bring the whole EU down around them too. – Yours, etc,
Madam, – The bond markets have had their say about this dreadful Government. Why can’t we? – Yours, etc,
Madam, – What’s all this fuss about taking money from Europe? Never stopped us before! Is it because we will have to pay it back? – Yours, etc,
Madam, – Our capacity for self-inflicted punishment defies logic. During the Famine the Irish people refused to take the “soup” because of the fear of proselytism. Today the Government refuses to take the offer of the EU-IMF bailout fund because of the threat to our sovereignty. – Yours, etc,