Ireland Is Not Iceland
By Greg Hunter’s USAWatchdog.com
It is official. Ireland was bailed out yesterday by the European Union with a financial package totaling more than a $112 billion. This money bails out Irish banks but coincides with steep cuts in the Irish budget. Marketwatch.com is reporting, “This program is absolutely essential for the country,” said Irish Prime Minister Brian Cowen at a press conference in Dublin. “We have carefully considered all available policy options. (It’s) the best available deal for Ireland.” (Click here for the complete article from Marketwatch.com.)
Not everybody in Ireland thinks bailing out the banks was such a good idea. More than 100,000 people marched in protest in Dublin on Saturday. One of the Irishmen organizing the peaceful demonstration is Jim Corr. You may not recognize him, but you probably have heard many of the hits from his folk/rock band, “The Corrs.” I remember them being booked on Good Morning America in the early 2000’s when I worked there. Back then, getting them was a big deal. Corr is not just a musician. He is heavily involved in charity and, more recently, activism. Corr says the bailout of Ireland’s banks will enslave the island nation and means the end of Irish sovereignty. Corr put out a video to his countrymen recently before the protest over the weekend. Corr thinks the world financial crash is “engineered” and designed to take over not just Ireland but “many countries.” Hear what Jim Corr has to say for yourself. Keep in mind he could be talking to someone in any country affected by the financial meltdown, and that includes America. I thought what Corr had to say was compelling. Please check out his video here:
Corr believes Ireland should let the banks fail and not prop up insolvent institutions. That is exactly how Iceland is handling its meltdown from 2 years ago. Iceland’s President Olafur Grimsson appeared on Bloomberg TV last Friday and said his country is better off for not propping up his country’s banks. Iceland still owes $85 billion in debt. Grimsson said, “The difference is that in Iceland we allowed the banks to fail . . . These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks. . . . As a consequence, Iceland is faring much better than anybody expected.” (Click here to read the complete Bloomberg story.) What helped Iceland was the fact the country could devalue its currency (the Krona). Ireland uses the Euro, and it cannot devalue it.
The question for Iceland and any other country is how much should regular people have to pay for the mistakes of reckless private banks? In Iceland’s case, the people voted down a deal this year that would have saddled each and every person with a debt of more than $16,000. The referendum received a “no” vote by more than 90% of the people. The rating agencies cut the country’s debt to “junk,” but now Iceland is in a stronger negotiating position with its creditors. Iceland is going to pay some of the debt off, but many experts are anticipating creditors will take big losses.
Ireland’s leaders, on the other hand, accepted the EU bailout and will now be forced to pay the full price for the mistakes of its banks for generations to come. Before the Irish accepted the EU bailout, there was a meeting at the European Parliament where bailouts of Ireland and other countries were being discussed. One United Kingdom member of the EU Parliament, Nigel Farage, warned that the Irish bailout would lead to more bailouts and, ultimately, the destruction on the Euro currency. As I watched this, I wished he was an American politician. Enjoy:
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
It is truly sad that our world has devolved into this state, but even more disturbing how the banks are put before the will of the people. It seems that we are on the way to trading our liberties for fascism in other places besides the USA. As Mr. Farage stated, I fear we will see more nations being plundered by the inflationary bait-and-switch tactics of a banking system that has no governance by the people and little incentive to change.
I strongly agree with the idea that the bondholders and banks should shoulder the responsibility for the Irish debt burden. Afterall, bonds are a risk asset and the idea that the broad majority of Irish people would agree with massive pay cuts and increased taxes to satisfy bond holders or bank lenders sounds patently absurd. I think the passing of the bailout will be against the will of the people and the needs of the nation.
Adam, Art and Slingshot,
These are good comments guys. Thank you for adding to this post.
Greg
Greg, our banks have been bailed out and will again although the government and wall street will decide which one will get the bail out. The little local bank on main street, if they are in trouble, will be let to fail while the investment banks will do quite fine. Maybe they can even get a big X-mas bonus again this year, afterall they have families who need new villas in third world counties to vacation at just like the rest of us, not to mention private jets and royal treatment. When you think of it, why would the banks not take the money if someone else is paying the bill, and you were
taught that entitlements was not american! The same people preaching about the evils of welfare, the government, wallstreet & the banks, have their hands out all the time; simply stated, they can’t be shamed.
“How much should regular people have to pay for the mistakes of reckless private banks?”
Not one penny! But, you sure can place plenty of blame on everyone. The word “pay” may be a two edged sword. One being of monetary nature and second having to experience a devastated way of life. Regular people? Does that mean people who have a job or can afford to pay? Again, how much? Each according to his own. Where have I heard that before?
Attaboys to Mr. Jim Corr and Mr. Nigal Farage, standing up to this evil. Least they are on record.
Although some say it is a different story, Spain, Portugal and Italy are in the same boat and most likely will begin some type of financial restructuring in the near future. But one also has to look internally. California, with 60+billion in debt exceeds many foreign countries total debt, leaving the USA in a position to have to bailout mismangement of a state to prop up debt that is close to being rated “junk” by the rating agencies. We have a long road to recovery. Then add the debt problems of New York, New Jersey and Illinois to see how large the problem really is. But then we do tend to elect officials more inclined to react than to govern, leading to these problems.
Ron,
Like Mr. Farage, I don’t see how the Euro makes it in the long, or maybe not so long term. Thank you for the comment.
Greg
Why do politicians believe that bailing out the banks will revive their economies? We saw what happened with QE1 in America — the banks just held onto the money and gave themselves huge bonuses (knowing full well that they were still in debt and the bailout money was not nearly enough to make them whole again).
Banks don’t do business with aliens. If the average middle-class person can’t afford to purchase goods or services, businesses are not going to start new companies to create goods that no one can afford to buy.
I don’t understand what the banks are doing here. What is their long-term goal?
NM,
I think they simply want to remain in control. Hey, being in charge of the fake money is a nice gig!!
Greg
Privately owned and run central banking should be outlawed internationally. It is non-constitutioinal and it is the largest problem facing America in my opinion. The video by Corr was right on the money. I do think this is all being done on purpose and by design in order to push in a global currency/government. Watch Confessions of an Economic Hitman sometime to see how it works. If we are going to live with fiat money then I guess it would be better to have a public central bank. I still do not trust anyone to run it though. I know there is call for going back to gold/silver money but if it is going to be an international currency then count me out. We need to protect our soveriegnty and constitution above all else. Globalists want the North American Union to be on par with the European Union, so if we want to follow our friends in Europe down this path of destruction and never ending debt then support your globalist politicians in the Council on Foriegn Relations. I really liked the second video with Nigel. I have seen him a few time before and he is a great politician in my view. Greg is spot on about the fact that we need people like him running our own country, people of priciple that are not afraid to say what they think and what is best for the people and not what is best for banks and corporations. Unfortunately capitalism is scapegoated for all our failures but anyone with half a brain knows we do not live in a capitalist system any longer. If it looks like facsism and smells like facsism, it’s probably fascism. I have no problem with any corporations providing goods and services on a level playing field with fair rules and competition but those days are long gone as far as I can tell. Government of the banks, for the banks and by the banks.
James M,
I agree totally but I do not thing that will happen anytime soon. Thank you for the comment.
Greg
Support your politicians in the Council on Foriegn Relations and we can get rid of that silly constiution thingy and have a North American Union just like the lucky Europeans. Good videos. I love Nigel, he tells it like it is and Greg is spot on about us needing people like him in our government. We could only be so lucky. If it smells like fascisim and tastes like fascism, then it is probably fascism lol. Welcome to global government where everyone is equally poor and destitute as their neighbors, well unless your a politician, banker or coporate big wig. The book Confessions of an Economic Hitman shows how the game works for those who are interested. I think there is a video too. Once the IMF comes in your all done. Destroy private central banking. It is a direct threat to our soveriegn government and constitution. Give me some real gold or silver, thanks. If the bankers want more then they can get a shovel and go dig for it like the rest of us. Shut em down.
Thanks James M.
Greg
Greg,
Don’t think it is going to happen anytime soon? I would agree to a point. It is like Murphy’s Law combined with the Laws of Probability, trying to figure it out. You just have no foundation to which you can even make an educated guess. What I read is that the powers that be do not have a handle on it anymore. They have told so many lies that the results they wanted to obtain will be at higher costs to us all. The only item that has been constant is the printing of the dollar. They will print to save themselves from the wrath of the people and the people have no idea how bad it can be. Although the dollar index has strenghtened, a reversal could be the signal bad things over the horizon. Bonds and interest rates are just a side show. Sell the bonds and the government monetizes the sale. Interest rates will stay low or kill the recovery if there is one.
There are all types of indications of the financial HEALTH of the world. I would bet my bottom dollar, if the US Dollar falls below 70 on the index we are close to a revaluation and a hyperinflation scenario. That’s the best I can do ;0)
Slingshot,
Your analysis is spot on. You are asking all the right questions!
Greg
The financial tsunami will swamped the entire EU in the near future and continue across the oceans to our shores. I feel very sad for the Irish people being sold out to the corporate bank gangsters.
Jan,
I predict the U.S. will be hit with the biggest wave of all. Thank you for the comment.
Greg
What do you think about Obama’s pay freeze on federal salaries? Does he think people are that stupid?
The biggest benefit to having a federal job is not the salary per se, but the benefits that come with it (like lifetime pensions and lifetime medical benefits). If you don’t cut those, nothing really changes.
I’m just worried about holding onto my job at this point. I can’t even think about saving. By the time I’m done paying bills, there’s hardly anything left.
nm,
It is a step in the right direction but it is a small step. There needs to be mass cuts in spending but instead we are getting mass bailouts and money printing.
Greg
Hi Greg,
FYI – Your first YouTube posting from Mr. Corr doesn’t display properly on a Windows machine in IE v8.0. It overlaps your right pane by about 1/2 inch.
🙂 Diane
Diane,
Thank you for catching that little mistake. It is fixed.
Greg
The scramble to unload those confederate dollars,….I mean euros, when each European Nation goes back to their own currency, is when the real show begins.
However, TPTB, may give the world quite a show, trying their best to hang on to power. The world, may very well see $100,000+ oz gold, if the Banksters see re-valuating gold, as their only way, to remain in power.
Of course, that doesn’t happen, till they have most of the gold.
2 cents worth from central mo. What do I know , anyway?
Lostinmissouri,
Thank you for the compelling comment.
Greg
Back in May of this year, when the financial commentators were talking about the PIIGS defaulting, the European Union announced a trillion dollar rescue package. Is this $ 112 billion bailout part of that package – or is it in addition to that package? If it is part of the original package of bail out money then its not really news. If it is an additional appropriation then, where did the original trillion dollars go? I have always suspected that much of these public announcements of TARP, EU Bailout, QE1,QE2… are for public consumption and the intention is to kick the can down the road.
Stanley,
Every time they kick the can the road covered gets shorter and shorter. Thank you for the comment.
Greg
Great comments, our area in cental California is in free fall. Very few people who live in this great valley are doing well. Most are losing jobs, hours, or their businesses are suffering. Foreclosures are everywhere, each street has one or more, business closures everywhere, emply spaces galore. The media continues to report on the improving economy and the great start for Christmas season. Frankly, they arn’t reporting around here! Now for my point. The banks are bad guys, the government and wall street are also, but frankly, the worst of the lot is the national media. They refuse to tell the real story so I place them right up with the banksters, wallstreet and our
government fat cats and the 2 percent elite class. Don’t believe a word they print or video. The rosey color they picture is simply not the american I see around here. Greg, my hats off to you and yours!
Art Barnes,
Thank you for the news from the front lines of the economy and your kind words.
Greg
After reading many peoples thoughts about the bail outs of the corrupt banks of the EU & USA, it seems like the Icelanders got it right, even if they had to endure harsh changes to the life styles that liked. The Irish would also fair better in the long run. You see if they take the Deal, it will only a matter of time before the bankers would have them in worse shape because central planning has never worked in all of the worlds history.
The US government should have never gave the bail outs to any banks, not a dime. But is what it is. Now we see they have not changed the way they place high risk bets & if they lose they come back to the slopping trough the Fed has given them. So the fact is the bankers run the government with no intentions of looking out for the Nation that made them rich, bu they damn sure want the public to pay for any losses form the derivative products they produced & sold. At the rate some banksters are going,they will be Trillionaires soon.
WikiLeaks has started a fire storm that many have put their two cents in from Obama to a very pissed off bunch in the state dept. We have got all sorts of stuff from the MSM that he should be snuffed out to others he’s a hero! Who knows, but if he exposes the Fed & its actions to Americans where congress “could/would” not do, I would thank him! At least people are getting interested as they lose unemployment checks & taxes are set to go way up.
We should watch Iceland, they chose freedom over being slaves to corruption in gov & the banking system & slowly paying off the debt trap set by the central planners made up of bankers running gov. For once the will of the people won out as it should be. If it would only spread here like wild fire, just like the drug cartels on our boarders are doing while Obama plays his fiddle as the nation burns! Buy Gold & Silver & plenty of can food,ammo & keep your faith in GOD!
M Smith,
I totally agree, and wrote something along the same lines as you a year ago in a post called “Default Option.” Great minds think alike!!! Thank you for the comment.
Greg
Nigel farage is a patriot in the true sense and I have rooted him on for some time. I’m very impressed with Mr. Corrs although I’m not the biggest fan of his music.
Sadly, while all these gentlemen are correct, nothing will be done until the citizens of these once great nations are bankrupted and forced to eat a can of dog food for dinner, especially in the U.S.
The Cat,
I hope you are wrong but I fear you are not. Thank you for your stark comment.
Greg