Posts Tagged ‘Ireland’


By Becket Adams

The Blaze reported earlier this afternoon that Spain had finally caved and asked the European Union to save its ailing banking sector with a bailout of up to $125 billion (€100 billion). When news of the Spanish bailout broke, this was also reported [emphasis added]:

Economy Minister Luis de Guindos said Saturday the aid will go to the banking sector only and so would not come with new austerity conditions attached for the economy in general. A statement from the finance ministers of the 17 countries that use the euro explained that the money would be fed directly into a fund Spain set up to recapitalize its banks, but underscored that the Spanish government is ultimately responsible for the loan.
Did you catch that? Spain scored itself a massive no-strings-attached bailout deal. Clearly, this sets them apart from the other eurozone countries that were forced to agree to austerity measures in order to be eligible for financial aid.

But, for lack of a better comparison, the EU is like a family. And as anyone with siblings can tell you, when one kid gets special treatment, all the kids want special treatment. And that’s exactly what is brewing in Ireland.

“Ireland wants to renegotiate its rescue plan to benefit from the same treatment as Spain, which looks set to win a bailout for its banks without any broader economic reforms in return,” the AFP reports.

“Ireland [wants] to ensure parity of the deal with Spain retroactively on its bailout from EFSF [European Financial Stability Facility],” an EU government source told AFP.

The rescue package Ireland agreed to back in November 2010 involved an injection of €85 billion ($112 billion) from the European Union and the International Monetary Fund. Of course, in order to get their hands on all that money, they had to agree to austerity.

So why was Spain given a sweetheart deal? That’s exactly what leaders in the Emerald Isle want to know.

“Dublin plans to raise the issue during the next meeting of eurozone finance ministers to be held June 21,” the AFP reports.

You know what this means, right? Ireland isn’t going to be the only bailed out country crying foul.

You know who else is going to be unhappy about this?

“[W]ith Ireland on the renegotiation train, next comes Greece. Only with Greece the wheels for a bailout overhaul are already in motion and are called a ‘vote of Syriza on June 17.’ And remember how everyone was threatening the Greeks with the 10th circle of hell if they dare to renegotiate the memorandum?” writers at Zero Hedge ask.

“Well, Spain just showed that a condition-free bailout is an option. Which means Syriza will get all the votes it needs and then some with promises of a consequence free bailout renegotiation. In other words Syriza’s Tsipras should send a bottle of the finest champagne to de Guindos — he just won him the election,” Zero Hedge adds.

Indeed, if you thought the situation in the EU was dire, consider a scenario where previously rescued countries decide to renege on the terms of their bailouts. And why not? If Spain gets an unconditional bailout, why not Greece?

“Congrats Germany: you have now opened the Pandora’s box of infinite moral hazard, bailout renegotiations and unconditional rescues. Anything less than a pari passu bailout to Spain’s, which the economy minister touted as having no political strings attached, will incite a revolution,” Zero Hedge adds.

Bilderberg conference 2011: agenda overview



According several inside sources, the Bilderberg 2011 agenda included a number of critical issues at the top of the elite’s to-do list.

These breakdown as follows:

Arab Spring:

The elite are concerned that the American Congress may soon turn against the illegal and immoral invasion under humanitarian cover by NATO and the UN against the north African dictator Muammar Gaddafi.

Congress is rising in opposition to bogus wars launched by the executive branch in violation of the Constitution. More than a third of House Republicans voted to pull out of the NATO coalition attacking Gaddafi’s forces, in essence forcing a NATO withdrawal from the color revolution engineered civil war in that country.

The elite behind closed doors in Switzerland are pushing for a wider war and incalculable suffering in the Middle East. The money masters have long profited from war and mass murder: Nathan Rothschild made a financial bet on Napoleon at the Battle of Waterloo  while also funding the Duke of Wellington’s peninsular campaign against Napoleon. The House of Rothschild financed the Prussian War, the Crimean War and the British attempt to seize the Suez Canal from the Frenchand also financed the Mexican War and the Civil War in the U.S.

Internet Censorship:

In addition to worrying about Congress waking up to the Libyan scam, the global elite is also concerned about a diverse liberty movement that has grown exponentially with the help of an open and free internet. In response, the pocketed pawns in Congress have introduced a raft of bills over the last few months designed to take down the internet and blunt its impact as a medium for alternative news and information.

On the international front, the European Commission gave a nod toward implementing the Anti-Counterfeiting Trade Agreement (ACTA), a draconian measure that will subvert national sovereignty, trash Net Neutrality, consumer privacy, and civil liberties. In the United States, the corporate media has virtually ignored ACTA, but then key players in the Mockingbird media are often Bilderberg attendees and privy to aspects of the agenda.

The above represent a small sampling of legislation and treaties that will be used to shut down the opposition under the cover of protecting copyright and preventing terrorism.

The globalists are not opposed to the internet, especially as a corporatized money-making instrument. They are, however, opposed to an open, free, and unregulated by government internet where alternative media opposed to their globalist devices are allowed to thrive. In addition, we can expect minions of the global elite who parade around as our elected representatives and appointed government officials to continue their propaganda efforts to convince the people that the internet will be used as a terrorist weapon of mass destruction and as such needs to be tightly regulated – for our own safety, of course, and that of the children.

Prolonging the economic crisis:

Finally, the Bilderbergers will work on an effort to continue into further fantastic debt producing bankster bailouts, specifically for Greece, Ireland, Portugal, and other member EU nations sliding toward bankruptcy and social disruption on a monumental scale.

Oil prices will skyrocket – a faith accomplished with gas prices at the pump now at historically high levels – as the global elite work behind the scenes to take take down national economies. New revelations also deal with the death of the dollar, exploding energy prices, and the engineered onset of order out of chaos revolution worldwide.

Because the plan is to take down national sovereignty, impose drastic austerity measures, hold fire sales on national assets, consolidate wealth and power, and use an endless economic crisis as an excuse to usher in world government, a one-world currency, and a sprawling high-tech police state.

New head of the IMF decision:

It was reported that the new IMF head would be decided at the Bilderberg meeting. A prominent attendee to the elitist gathering has been entered into the race to become the IMF head at the eleventh hour.

Bank of Israel Governor Stanley Fischer, an insider favorite of Bilderberg and multiple time attendee, announced his intention to bid to become the replacement managing director of the IMF, taking the position previously held by Dominique Strauss-Kahn, himself a former Bilderberg attendee. Fischer is also a member of The Council on Foreign Relations and The Trilateral Commission.

Strauss-Kahn stepped down from the position after it was alleged he attempted to rape a hotel maid. Some believe Strauss-Kahn was set-up in order to remove him from the IMF.

A three way race is now in place between Fischer, Mexican central banker Agustín Carstens and French Finance Minister Christine Lagarde.

Both Carstens and Lagarde have embarked on tours to promote their bids and will be joined now by Stanley Fischer.


Jim Tucker’s anonymous steering level Bilderberg inside source told him war in the Middle East is at the top of the elite’s agenda.

The long time Bilderberg sleuth said the elite believe the world is over-populated and war represents a partial solution.

“They are unified on their war project,” said Tucker, citing his Trilateralist-Bilderberg source, “their rationalize the world is too crowded anyway, they have to limit the population growth, the one way to do it is with wars. They have been emphasizing that all day.”

Bilderberg Conference awareness and coverage:


Tucker also said the elite are outraged by the patriot movement and the alternative media’s coverage of the Bilderberg meetings and the release of information by moles and insiders. He said the elite attempted to get media magnate Rupert Murdoch to convince The Guardian in the United Kingdom and the Irish Times to scale back their reportage on the Bilderbergers, but he was unable to do so.


Tucker’s sources also said the Bilderbergers are stunned about the presence of demonstrators and alternative media.



George Soros Says EU May Disintegrate, Again


The European Union is at risk of disintegration unless Ireland is allowed to restructure its bank debts, and Greece is allowed to restructure its government debts.

That’s the moderately apocalyptic message George Soros has chosen to bring to this year’s Davos boondoggle.

It’s not the first time Soros has delivered this warning, but it comes at a time when euro-zone policy makers appear to have had some success in convincing nervous investors that the currency area can deal with its debt problems.


George Soros, speaks at the Seehof hotel on the sidelines of the World Economic Forum in Davos, Switzerland on Wednesday, Jan. 26, 2011.

Soros doesn’t disagree, telling the BBC that, narrowly defined, “the euro crisis is on the way to being solved.”

But he argues that the way in which euro-zone policy makers are addressing investor concerns is sowing the seeds for a future crisis, one that threatens the European Union. For Soros, the burden of repaying very large debts will be so great for Ireland, Greece, Portugal and others that it will create a “two-speed Europe,” and political tensions that could at some point force some of those countries out of the bloc.

It has to be said that a small number of small countries leaving a group of 27 nations, many of which are very large by comparison, isn’t exactly disintegration. It’s more like a slight shrinkage in something that has already grown way beyond anyone’s imaginings.

After all, the EU started with six members in the 1950s, and had only managed to rise to 15 by the time of the big expansion in 2004.

But it’s also unclear why nations facing debt problems would leave the EU, rather than the euro zone. They might have to drop the euro to gain some competitiveness in export markets and default on their debts without doing too much damage to the currency area as a whole, but leaving the EU wouldn’t help, and would hurt a lot. That doesn’t mean that Soros is wrong about the need for debt rescheduling, just that he’s conjuring up an excessively gloomy scenario if that isn’t pursued.

As they prepare for a general election on February 25, Irish voters are likely to make their preference for a renegotiation of the nation’s bank debts very clear. And many economists believe that Greece will be unable to stabilize its finances without a debt rescheduling.

For now, euro zone policy makers don’t want to contemplate either possibility, because that might spook investors and make it even harder for Portugal and Spain to borrow in the international bond markets. But there’s little doubt that the burden or repaying and servicing their debts will act as a drag on some euro-zone nations for a very long time, and that it might be better to find a negotiated way of easing that pain.

Continuing Crisis in the Eurozone

By Bud Conrad

In casting about for insights of how the ongoing global financial crisis may unfold, I am coming across an increasing number of stories about inflation in emerging countries, along with the persistent problems being caused by the overhang of sovereign debt in developed countries.

One article worth your time is authored by Ambrose Evans-Pritchard writing in London’s Telegraph on the latest problems in the eurozone having to do with Portugal. In his article, he points out that when interest rates rise to 7%, it is hard to keep the country from moving into default and bailout.

The purpose of the hundreds of billions of dollars in bailouts arranged by the European Central Bank has been to save the banks of Germany and France, not to help Portugal or its citizens. These bailouts will continue until the European Union is bankrupt and sold out to Asia, particularly China and Japan, as they are the ones with the money to buy cheap assets after the crash.

This accelerating crisis in Europe does not leave the rest of the world safer, because it leads to contagion. And those looking for a safe harbor in the U.S. will increasingly find their options limited. That’s because the huge U.S. deficits and spending are even worse than in the eurozone, where at least some attempt is being made to introduce a semblance of austerity. By contrast, the U.S. is unswerving in its headlong rush to spend itself into dollar collapse.

The extent of the problems in Europe, as well as elsewhere, can be seen in the rising cost of insuring debt against default. In the chart here, you can see the rising costs of default coverage on an index made up of the sovereign debt of 19 Western European countries.

The dam breaks in Portugal

Those of us chained by journalistic destiny to the eternal EMU crisis remember the exact moment when Ireland succumbed.

Premier Brian Cowen was still insisting that his government was fully funded for months to come and had no need whatsoever for an EU-IMF loan package when the central bank put a swift stop to the charade.

The moment that Governor Patrick Hohonan said he “absolutely” expected his country to accept a loan package worth “tens of billion”, it was over.

So I had a sense of deja vu this morning when Teodora Cardoso, the Adminstradora of the Banco de Portugal, blurted out in a conference that her country should turn to the IMF. “It would be easier if we had external support because the adjustment would be less abrupt: if we leave it to the markets it may be brutal,” she said. (My loose translation).

Here is the Portuguese version from Economico for Lusophiles: “É mais fácil se tivermos um apoio externo, desde logo porque isso permite que o ajustamento não seja tão abrupto, mas feito sozinho, para os mercados acreditarem nele, teria que ser brutal. Com o apoio de uma dessas instituições (FMI ou Fundo Europeu) poderá ser menos abrupto”.

Meanwhile, Publico reports that “technical talks” are going on behind the scenes with the EU authorities and the IMF, with a plan likely to be in place by next week. This feels exactly like the final days – or hours – before Ireland gave in.

Evidently, there is a split at the central bank. Governor Carlos Costa still insists that a rescue can be avoided. “I have said it, and I will say it again: the Portuguese are solving their problems and have the ability to solve their problems themselves,” he said.

Well, Dr Costa, if you cannot hold your own board together, do you expect us to believe this?

The current rule of thumb in the markets is that when yields on 10-year bonds rise above 7pc – they reached 7.24pc yesterday before ECB gunners fired off a whiff of grapeshot – the situation becomes untenable, especially for economies that are contracting.

Portugal’s central bank has just released its forecast for 2011, predicting that GDP will contract 1.3pc. Think about this. Interest costs on total public/private debt of 325pc of GDP are rising on a shrinking economy. The debt dynamics are deathly.

Finance minister Fernando Texeira dos Santos this morning sounded like a man who has just been flattened by a Panzer. “We are doing our job. Clearly, Europe is not doing its job to defend the stability of the euro,” he said.

Diabo, Senhor.

I cannot see what Portugal gains at this point from dragging out the agony, though I can quite understand why the ruling Socialists prefer to delude themselves a little longer. Any recourse to the IMF would shatter all that remains of their credibility.

Let me be clear, there is no shame or necessary stigma to an IMF package, and the Fund is a much cuddlier institution than it was last time Portugal needed help. Nor let it ever be forgotten that Portugal is to a great extent the victim of EMU’s unworkable structure. However, the political reality is that any bail-out would be viewed by Portugal’s people as a disgrace and a humiliation.

As for Germany and France, what do they think will be gained by using press leaks to set in motion a chain of events that forces Portugal to take a loan package? Did they not learn from Ireland’s forced rescue that deployment of the EFSF bail-out fund offered no defence whatsoever against further contagion, failed to bring down Irish spreads, and merely drew closer attention to the fact the EU rescue machinery is too small and dysfunctional to cope with the berg beneath the protruding ice?

As Wolfgang Munchau wrote in the FT on Monday, the essential problem is that Spain and other Club Med states cannot both deflate to regain lost competitiveness within EMU and at the same grow fast enough to control debt dynamics. They can do one or the other, but not both at the same time.

The EU strategy is simply unworkable. It relies on hope and a prayer, and the misguided belief that the North-South imbalances are “self-correcting”  to pinch from Wolfgang’s excellent column once again.

All we can do is stand back and watch in pain as the Euro-Hegelians ruin one country after another.

My sympathies to the Portuguese people who are not to blame for the foolish illusions of their governing elites. And remember, Cara Nação, this bail-out is not for you: it is for European banks exposed to Portuguese debt, just as the Irish and Greek bail-outs were in reality rescues for German, French, Belgian, Dutch, British, and Spanish lenders that ran amok during the credit bubble.
But you pay.


Portugal held a successful auction of €1.25bn of debt today (January 12), including the sale of 10-year bonds at 6.72pc.

Well done.

However, there were many such successful auctions in the build-up to the Greek and Irish bail-outs. Such events are dramatic if they fail. Merely to survive an auction is less meaningful than some readers seem to think.

(I did not, by the way, predict that this auction would fail, given that China has promised to buy Iberian debt)

The ECB has been buying Portuguese debt heavily for two days. This has rammed down yields, but the ECB’s actions are subject to court challenge in Germany and the Bundesbank is openly opposed to such intervention. This policy cannot be used for long.

Precisely who bought the debt is an interesting question. It does not matter whether it is technically domestic or foreign, because foreign buyers can use proxies.

So no, I still view the dam as broken. Germany, Finland, and the Netherlands are pushing Portugal to take a rescue, for reasons that have little to do with Portugal.

Given the power politics going on in the EU, I do not see how this can be resisted for long.

Furthermore, I cannot see why people are so emotional about the specific question of a loan package.

There is nothing disgraceful about IMF help. That is what the Fund is there for.

Top-down engineered financial crash designed to take over Europe


Be thankful this holiday weekend that you don't live in Ireland or Greece.

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