Monday, 15 November 2010

Ireland - a war by economic means

There are any number of Irishmen who believe their country joined the Euro simply because the UK did not do so. If the UK were to change it's mind about assisting the Irish bail out with a €7 billion contribution it will be seen as a tit for tat gesture by these same Irishmen and probably by the rest of Ireland. This would be wrong though. Why should the UK, which is not a member of the Eurozone, make any contribution to the bail out fund? Yes, we want strong trading partners but the result of the present EU policy will produce weaker buyers for our goods. It is thus in the UK's interest for the Euro to fail and we should be doing all in our power to bring this about as soon as possible so that the whole mess gets sorted out with the minimum delay. Coincidentally it is more important for Ireland and indeed Greece, Portugal, Spain and Italy to leave the Eurozone since to stay in will result in levels of unemployment and tax rises that will leave them impoverished, and possibly in danger of revolution or extreme left goverments, for years. Each of them will recover more quickly outside the Eurozone. The only reason why the Eurozone is so keen for them to stay in is to save the French and other European banks, that have bought Irish, Greek, Spanish etc bonds, from being forced into liquidation - a real danger if Ireland et al default on their bonds. If that were to occur France and the governments of the other countries with shaky banks will have to rely on themselves to sort out their own mess and not on the citizens of those Eurozone countries least capable of doing so. It seems that the current policy being pursued by the EU is being done solely for the benefit of the more stable European economies such as Germany. Is this a war by economic means and in the hope that Ireland et al will become vassal states? Sure seems like it. 

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