The Irish Economy
Commentary, information, and intelligent discourse about the Irish economy
Chapters and summary version available here.
Maybe the GFIR-Global Financial Instability Report.
At the moment its a bit like the old song:
‘Three wheels on my wagon’
“The report urges policymakers to act now to restore confidence, reverse capital flight, and reintegrate the euro zone. ”
Reverse capital flight should be first on list. Capital controls are needed.
I’d guess it won’t be long before the figures on Ireland in Table 2.1 are misinterpreted (again).
Gross debt as a % of GDP, 2012
General Government: 118
Non-Financial Corporations: 289
Financial Corporations: 706
External Liabilities: 1,750
The price of Stability? Who pays?
Iceland the Top Echelons; Ireland the Bottom Echelons.
The institutionalized imperative in Hibernia to flog the lower orders continues since the early 19th Century …. the inter-generational cost will not be pretty …
The figure notes that external liabilities includes financial centres.
“This is the land where nothing changes
The land of red buses
And blue blooded babies
This is the place where pensioners are raped
And the hearts are being cut from the welfare state
Let the poor drink the milk
While the rich eat their honey
Let the bums count their blessings
While they count the money” (Matt Johson, The The)
TAKE A BREAK
WELCOME TO THE DESERT OF THE REAL
ECB chief dismisses promissory notes deal
By Ann Cahill
Wednesday, October 10, 2012
ECB president Mario Draghi has made a withering reference to Ireland and the efforts to swap the Anglo Irish Bank promissory notes for more affordable funding. […]
Mr Draghi said any possible rescheduling of the €31bn put into banks by the Government must wait until the banking supervisor is in place. He indicated this might not happen until the end of 2013.
‘Spose Lucinda ‘ll fix it! Welcome to the desert of the real!
Global Financial Stability at Risk?
IMF Demands Swift Banking Union in Europe
The International Monetary Fund is losing patience with European politicians. Officials at the Washington-based institution are calling on the EU to present a clear plan for its banking union. Europe’s debt and euro crisis, the IMF warns, remains a persistent threat to the global economy.
future pan-European banking supervisory authority should take. The establishment of the authority is considered to be an important step toward creating a true European banking union. Currently, Germany and the European Commission are bickering over those plans, which German Finance Minister Wolfgang Schäuble believes are poorly conceived. Schäuble, a member of Chancellor Angela Merkel’s conservative Christian Democratic Union (CDU) party, has also expressed doubts about the planned start date of January 2013, which he has described as overly ambitious. Some have said it could take months or longer before an agreement is reached.
The European Commission foresees a key role for the European Central Bank in monitoring European banks, but Schäuble has warned of conflicts of interest at the ECB, which is responsible for both monetary policy and interest rate decisions. But the start date for a common supervisory authority for banks operating within the common currency zone is important, because it is considered to be a prerequisite for providing direct aid from the euro bailout funds to troubled banks, including those of Spain that have been particularly afflicted by the crisis.
Germany is also at odds with France, which would like to see all 6,000 financial institutions in the euro zone be monitored by the ECB. Berlin, however, believes that a regime which keeps an eye just on “systemically important” banks would be sufficient.
After German Federal Elections anyone? Let alone this October on the PN matter!
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