The EU Wants 7% From Ireland. No Chance.

The small print of the Irish bail-out should make anyone think.  The main figure of importance is what the rate of interest will be, and it appears that the ECB is talking of asking Ireland to pay 7% for the monies it provides, which include 100 billion Euros already lent, to the 90 billion Euros bail-out.  There is no way Ireland can afford to pay it.

Guardian blogs on the Irish interest rate – Numbers coming out of the City are that it will be somewhere above 6%, which economists say is unsustainable.

The interest rate could be an albatross around Ireland’s neck lumbering the tax payer with a bill of billions a year to rescue a crocked banking system.
Last night government minister Batt O’Keefe did not deny the interest rate charged by the IMF/EFSF could be a punitive 7%.
This is beginning to sound like default territory.  If default is the preferred option, the Germans are going to be pleased, not to mention Britain who are owed the most.  It will be an event with worldwide consequences.

Once the first default kicks in,  other countries struggling with their debts will tumble like dominoes, and the numbers of countries in default will likely include many who are nothing to do with the EU.

The I.T. says there are many lenders interested in securely backed bonds in peripheral Euro countries paying 7%.  That said, who an afford to pay that amount?  If Ireland defaulted and reissued her own currency, she could probably borrow at half that rate.  The bond-holders will have to accept a one-off loss.  The Punt could find a level where Irish exports would blossom, and the recovery would be two years, not ten.  And Ireland would start to regain her freedom and recover her sovereignty.  That’s a win-win.

Defaults are going to come anyway since Germany insisted bond-holders must accept losses.  Ireland might as well stop the save-the-Euro nonsense now, as far fewepeople will be hurt, the sooner the plug is pulled.  Only Cowen’s cronies care about saving face and their wallets.  Don’t worry about them.  They’ve got plenty of money.

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.

2 Responses to “The EU Wants 7% From Ireland. No Chance.”

  1. stedra rulz says:

    I caught this comment from a Swiss TV crew who were covering events in Ireland on the Irish Nine o’Clock news.

    It went something like this: “if we had joined the European Union we might be where Ireland is today”.

    I’d say that they won’t be in any rush to join this rotten European Union.

  2. Tapestry says:

    The euroisation process works by bankrupting the countries, corrupting their elites and eliminating political opposition by media control or worse.

    Any country is vulnerable to such measures, which have been used to subjugate Third World countries for near fifty years.

    The same game works just as well in subjugating rich countries, unless their political systems are robust enough to stop or reverse the rot.

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