Original source : Irish Independent
Picked by: the daily
expensive and insufficient, the European funds are no longer enough. But Dublin has found a solution: return to mint. Even if it is for the continental
For months, Europe has faced the crisis of sovereign debt dissected the problem from every point of view. It has been discussed widely in rescue funds and the domino effect, but also of the possible downsizing of Euroland and the guidelines of the Stability Pact. Each hypothesis was evaluated by looking for the answer to the worst crisis that the continent accounts of collective memories. Yet no one had realized what the solution is simple. Other than restructure debts with complex plans watery and bloody. Better, much better, dramatically reducing the most obvious way: by printing at home billion € . Of course, it's just a joke in bad taste. Too bad that he does not laugh. Also because this is really happening in Ireland, of course.
The news reported recently by the newspaper in Dublin Irish Independent is nothing short of amazing, as much as the that no one from Brussels to Berlin has not yet raised his voice. The Irish Central Bank is financing an ambitious plan of 51 billion euro loan from printing the money itself. Exactly. In November, the last for which figures are available, the loans granted by the Central Bank fell 136.4000000000-132000000000 euro. The central institution in Ireland, beating themselves money, but has paid 6.4 billion more in favor of private banks in the country. A spokesman for the ECB, reports the Irish Times, confirmed all, stating in essence that can print all Dublin € he wants as long as the European Central Bank to be informed.
"Let's € Greece molds, let them mold Italy, Spain, Portugal and Belgium," said an analyst at Business Insider Mike Shedlock of Sitka Pacific. "As long as you can counterfeit (sic - ed) that the ECB's money without values, because every country euro should not print enough to pay off her debt? Each nation could become 'debt free' in a few seconds. I hope Cogliate sarcasm. Because this is an incredibly slippery slope and I am surprised that Germany is going in and screaming. " Difficult to give wrong Shedlock, especially in light of the financial implications of the strategy and policies Ireland.
the eve of the Ecofin, Economic Minister Brian Lenihan in Dublin has publicly complained about the loan conditions which apply to his country, asked to pay an average annual interest of 5.8% to the EU and the International Monetary Fund about € 67.5 billion that were secured. A statement that sounds like an implicit justification. In other words: to save on interest in producing better home a bit 'of cash. All perfectly logical if it were not such a choice results in an inflationary pressure on the entire continent downloaded. And what of the temptation in the face of logic could be applied to the other economies in trouble? So far the ECB has authorized Dublin counting on the fact that some one billion euro more should have no significant impact on the value of the euro. But what if the other countries in similar crisis of claims? really the central bank would still have the authority and ability to respond negatively?
All questions unanswered, and for this very disturbing, that you will re forcefully if the government finances were to deteriorate again. Good news, if anything, is today from Madrid, where he successfully completed the last auction on government bonds to 12 and 18 months: 5.54 billion total of bonds sold at average rates of 2.94 (12 months) and 3.36% (18 months), thereby marking the first decrease in interest since last October. The spread between yields on bonds of the periphery of Europe and German bunds remain relatively stable while the price of credit default swaps (a measure of de facto sovereign bankruptcy risk) increased slightly (+10 Portugal, Ireland +9, +14 Greece, marks the final analysis of Markit). Pending an agreement on expanding the bottom save states, the ECB confirmed the meantime a good customer for domestic bonds. This week the central bank has purchased 2.313 billion against 113 million the week previous year.
The news reported recently by the newspaper in Dublin Irish Independent is nothing short of amazing, as much as the that no one from Brussels to Berlin has not yet raised his voice. The Irish Central Bank is financing an ambitious plan of 51 billion euro loan from printing the money itself. Exactly. In November, the last for which figures are available, the loans granted by the Central Bank fell 136.4000000000-132000000000 euro. The central institution in Ireland, beating themselves money, but has paid 6.4 billion more in favor of private banks in the country. A spokesman for the ECB, reports the Irish Times, confirmed all, stating in essence that can print all Dublin € he wants as long as the European Central Bank to be informed.
"Let's € Greece molds, let them mold Italy, Spain, Portugal and Belgium," said an analyst at Business Insider Mike Shedlock of Sitka Pacific. "As long as you can counterfeit (sic - ed) that the ECB's money without values, because every country euro should not print enough to pay off her debt? Each nation could become 'debt free' in a few seconds. I hope Cogliate sarcasm. Because this is an incredibly slippery slope and I am surprised that Germany is going in and screaming. " Difficult to give wrong Shedlock, especially in light of the financial implications of the strategy and policies Ireland.
the eve of the Ecofin, Economic Minister Brian Lenihan in Dublin has publicly complained about the loan conditions which apply to his country, asked to pay an average annual interest of 5.8% to the EU and the International Monetary Fund about € 67.5 billion that were secured. A statement that sounds like an implicit justification. In other words: to save on interest in producing better home a bit 'of cash. All perfectly logical if it were not such a choice results in an inflationary pressure on the entire continent downloaded. And what of the temptation in the face of logic could be applied to the other economies in trouble? So far the ECB has authorized Dublin counting on the fact that some one billion euro more should have no significant impact on the value of the euro. But what if the other countries in similar crisis of claims? really the central bank would still have the authority and ability to respond negatively?
All questions unanswered, and for this very disturbing, that you will re forcefully if the government finances were to deteriorate again. Good news, if anything, is today from Madrid, where he successfully completed the last auction on government bonds to 12 and 18 months: 5.54 billion total of bonds sold at average rates of 2.94 (12 months) and 3.36% (18 months), thereby marking the first decrease in interest since last October. The spread between yields on bonds of the periphery of Europe and German bunds remain relatively stable while the price of credit default swaps (a measure of de facto sovereign bankruptcy risk) increased slightly (+10 Portugal, Ireland +9, +14 Greece, marks the final analysis of Markit). Pending an agreement on expanding the bottom save states, the ECB confirmed the meantime a good customer for domestic bonds. This week the central bank has purchased 2.313 billion against 113 million the week previous year.
