In future, before the government decides on a single penny of expenditure on vital services, it will have to take out more than €5 billion to pay the interest on the IMF / ECB loan at the penal interest rate of 6.7%. That’s €5 billion less to spend on health and education, so that the banks can be sheltered from their criminal mistakes, and so that the speculators who invested in them can be spared the pain of an investment gone wrong.
Free market economics, Lenihan-style.
Five billion every year in interest on a loan that would not be needed but for the decision to guarantee banks that failed due to mismanagement.
Every sane commentator in the world is saying this is a mistake. Even the Financial Times, hardly a bastion of left-wing dissent, is advising against it.
The alternative? Force the creditors to take ownership of the banks, so that they have no option but to recapitalise them if they want their money back. After five or ten years, the banks will be back in profit and perfectly capable of repaying the investment.
Instead, in the most extreme example of moral hazard ever seen, the Irish government has taken upon the Irish people responsibility for mistakes they did not commit. The argument that we all borrowed too much is utterly spurious because, for the most part, we all still continue to pay our debts, and are therefore not part of the problem. It doesn’t matter what you or I borrowed if we make the repayments. In fact, we’re a major asset to the banks, so let nobody lecture you about how you lost the run of yourself. It’s nonsense.
This punitive deal is being forced through over the weekend so that it can be completed before the markets open on Monday. Ireland is being sacrificed to appease the spivs and money-dealers because the EU and the IMF are worried about Spain.
Let me repeat: the Irish people did not cause this problem. What caused this problem was the greed, dishonesty and incompetence of the bankers. What brought the catastrophe on Ireland was the decision by Lenihan to guarantee the. whole lot of them.
You might have heard Peter Bacon on the radio recently saying that he advised Lenihan the banks were in hock to the tune of about €158 billion. A week later, Lenihan told the Dáil the figure was about €75 billion.
A lie. One lie among many, from a liar
By such lies, the Irish people have been led gently through a maze of deception to the point where we are now to be sacrificed for something we did not do. The world is baffled. Nobody can believe that an Irish government would willingly allow its country to be destroyed, and yet that’s precisely what Cowen and Lenihan are doing.
Why? Because they’re serfs. Forelock-tugging peasants lacking the courage to face up to those who are attempting to force this disaster on the country.