The ’85 Bn. Bail-out for Ireland is far too little and too late to prevent a full-blown Banking Crisis II
Here’s what today’s €uro–PIIGS look like in numbers:
And here is the data you really need to know: the quantum of EU cross-border debts from BIS-reporting banks only.
Ireland €715 Bn.
Spain €534 Bn.
Italy €467 Bn.
Total PIIGS €1,982 Bn., or 32% of the EU Total.
What do we infer from this? That the €85 Bn. Bail-out for Ireland is far too little and too late to prevent a full-blown Banking Crisis II.
Armed with this ammo, here are some rather obvious points to make:
1. The unelected bureauocrats of Brussels specified in that dreadful Treaty of Masstricht that no country could have a National Debt greater than 60% of GDP. Bravo Spain for getting that one right – but that’s before you add in their Cajas banking crisis.
2. The unelected bureauocrats of Brussels specified in that dreadful Treaty of Maastricht that no country could have a Budgetary Deficit greater than 3% of GDP. None of the PIIGS, or any of the others, come close to staying within this rule.
3. The unelected bureauocrats of Brussels and that dreadful Treaty of Maastricht have been swamped by Global Crunch and their own incompetence to monitor the acceptance of new members, or their behaviour after admission. It’s time for a cull.
4. The EU Bail-out pot stands at €750 billion, about half of what may be needed, and that’s before the Banking Crisis II breaks. Is it worth putting up this kind of wedge to keep 30% of the EU’s GDP in the eurozone? Why not ask the electorate in the other 70%?
5. The only public figure to say anything sensible in the Irish crisis was Rt. Hon. John Redwood, MP, who pointed out the obvious when he said that the £7.0 billion about to be lent by the UK would be better spent/lent getting Ireland out of the eurozone. He received a general round of abuse from all the usual quarters, for telling the obvious truth.
6. In this crisis of the politicians own-making, the EU electorate have had no say. Result: stand by for marches, strikes and Civil Disobedience on a grand scale. Stand by for the eurozone as currently constituted to be blown away by Banking Crisis II in the next few months.
Try and have a Merry Christmas and a good laugh at it all, at the expense of those Brussels Bungling Bureauocrats. Ha! Ha! Ha!