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Idiots’ Guide to Irish Bailout

16 Nov

I’m trying to get this clear; to distill all the vast press comment into a few simple premises. As far as I can see, it comes down to this:

A) The Irish mistook the euro for a gravy train, but of course that particular train is permanently stuck in Brussels.

B) They set a low corporation tax, thus attracting many companies out of the UK and elsewhere.

C) This rush of FDI into Ireland goes to their head and creates a credit and property bubble. They mightily enjoyed this binge  and the title of Celtic Tigers until the train hit the buffers.

D) Now the chickens have come home to roost they teter on the edge of bankruptcy

E) They now need bailing out by the same competitors they stuffed with their low taxes

F) Labour signed up to this bailout AFTER losing the last election and before the new British government had been formed.

G) The Bruxellian Empire would love Ireland to ask for a bailout so that the former can encircle the Irish throat in its mighty steel pincers and – for a start – oblige it to up its corporation tax.

Yup – Alice would have felt quite at home among all this lot.

The ultimate goal for Bruxelles is of course the harmonisation (upwards) of all European taxes and is but one step along the road to the United States of Europe they slaver about. They are about to increase our taxes to pay for the USE Diplomatic Service, so it is a small step to creating the European Finance Ministry. Still, there is one consolation – we would no longer be stuck with a moron running the UK finances as in the last 13 years of Labour. And even if we were, EVERYONE ELSE would be stuck with the SAME moron, as he or she would be based in Frankfurt or Brussels. At least the moronicity would be shared out equally!

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6 responses to “Idiots’ Guide to Irish Bailout

  1. David W. Lincoln

    November 16, 2010 at 5:46 pm

    Well, given how Anglo-Irish Bank is being treated provides us with a template for what the Irish government is doing on a larger scale.

    Insisting that toxic assets are worth what was shelled
    out for them is plain and simple arrogance, and we simply cannot afford it.

     
  2. Chris Snuggs

    November 16, 2010 at 8:18 pm

    David – am I right? Is it crass incompetence allied to arrogance and wishful-thinking on the part of leaders and finance ministers or just bad luck?

    And why cannot we learn from history? Did you study the South-Sea Bubble at school? I did, but apprently a lot of the good and great missed that lesson.

     
  3. David W. Lincoln

    December 14, 2010 at 5:29 pm

    I would have to say the former, Chris. Henry Ford was
    right about this when it comes to history, “All we learn from history is, we do not learn from history”.

    “This time it’ll be different” has been said time and time again.

     
  4. Chris Snuggs

    December 14, 2010 at 6:24 pm

    Thanks for the comment David. The root cause seems to me to be arrogance. Because we are so “clever” with so many hi-tech gizmos we think we can buck history. The dot.com phenomenon was spoken about as indicative of “the new paradigm”. But the species didn’t suddenly change its spots, did it?

    What we desperately need is HUMILITY in ALL AREAS, including nationalism (Is the Chinese CP listening, too – as well as the Yanks of course ….)

     
    • David W. Lincoln

      December 20, 2010 at 7:23 pm

      One of the things that I watch is the Business Bullet,
      which far more often than not is hosted by Robert Miller, over at Telegraph finance page reserved for opinion. Namely: http://www.telegraph.co.uk/finance/financevideo/businessbullet/

      When France is mentioned as a potential trouble spot, primarily through its banks having bought so much dodgy sovereign bonds (plus, what about others who are
      French, and also invested in sovereign bonds that have
      higher interest rates than the most stable. I refer
      to pension plans, investors, and the equivalent of mutual funds), the problem is overpaying for junk.

      Like you said, the root cause is arrogance. So, once
      again history will repeat itself, but with different colours this time.

       
  5. Chris Snuggs

    December 20, 2010 at 8:04 pm

    Thanks for the tip re “Business Bullet”. I will have a look at it.

     

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