Irish Goose

A very heavy sell-off on the US and European stock markets followed raising Spanish and Italian bond rates. The politicians, particularly in Europe, continue to do too little too late. Germany and France, it is time to acknowledge that your banks have lost trillions, due to bad investments in periphery European markets, the trillions will not be returned. Rationalise your losses and move on, or cause a recession, the results of which cannot be predicted for anyone - Aug 5th 2011

The US dollar continues to fall, due to a threated US default, caused by Republican political brinksmanship in Congress. As if it the world financial system was not already in sufficient crisis. July 27th 2011

The market is very uncertain about the French and German proposals, the Euro has fallen again to approx .72 to the dollar. The latest moves by the creditor countries may well be seen a step in the right direction but as yet insufficient. Meanwhile the US administration is seeking a further 3 trillion dollars to save the United States from a default. The US figures give a more realistic indication of what may be required for the EU. - July 21st 2011

Europe begins to consider the 'Buy Back' of the clearly unredeemable loans from debtor countries. The future of the Euro and indeed the European project is at stake. The prime consideration at this point, for all concerned, is that the pain be shared out equally. However we await the full proposal, indications are however that the commitment by the creditor countries and their banks may be insufficient. However markets are optimistic, the Euro has gained a couple of cents on the dollar.- July 20th 2011

Italy's 1.8 trillion debt and conflict in the Italian government, causes sell-off as Euro falls

Irish Government begins to encounter real resistance (on the streets) to EU mandated cuts in Services

- Irish people and companies face huge uncertainty in the wake of the virtual collapse of Irish Banking. The banks ability and desire to fund the same businesses and individuals who have rescued them, is seriously under question, as the banks seek to consolidate their capital and even extract more from their current borrowers, good and bad. Prices in some sectors of the economy are falling very slowly. In many others however, Irish costs still remain among the highest in the EU; there seems to be very little competitive pressure. High rents and high property prices, little competition, high prices while monopolies, large and small, state and otherwise, continue. Added to this will be increasing tax and revenue collection by the government (which is seeking to satisfy international financiers) reduction in health, education and social services, and the loss of jobs resulting from same. We pay some of the highest salaries in the EU, because we need such sums to get by in such an expensive country; but then of course this also gives us the highest costs; it is a vicious circle.

Amid rioting in Athens the Greek parliament has pushed through legislation to mandate 28 Billion Euro in cutbacks to Greek government spending this year. In return the EMF and IMF will make available a further 12 billion in loans for Greece. It is hard to see how the Greeks can impliment these cuts, despite passing the legislative basis for its implimentation. It is also difficult to see how they could possibly pay back the latest loans from Frankfurt and Paris.
(Tue 30th June 2011)

The Minister for Finance plans to 'burn the senior bond holders' (i.e. repudiate any state liability for the over 4 Billion Euro debt owed by the now defunct Anglo-Irish Bank to creditors, principally German, French and British financial institutions). Will the European Central Bank penalise Ireland for allowing that? Meanwhile street battles rage in Athens, against the cutbacks in Jobs and Social Services, forced on Greece to pay the debts owed these same bond holders.

Enterprise Minister Richard Bruton plans to reduce pay for the poorest 250,000 workers, to help businesses survive and grow in the economic crisis.