Posts Tagged ‘irish economic crisis’

Ireland’s Sorry Economic Mess: Irish Economy Remains in Crisis

December 3rd, 2012 Comments off

Despite official claims from Dublin that Irish consumer confidence rose slightly, the economic outlook for Ireland remains extremely guarded. The economy remains mired in recession, with the Organization for Economic Co-operation and Development (OECD)  stating that Dublin’s  economy is forecast to have grown by 0.6 percent in 2012, essentially zero growth, with a government deficit exceeding 8 percent of the nation’s GDP.

The OECD is suggesting that Ireland, which like several other PIIGS countries is surviving on a taxpayer-funded Eurozone bailout, be allowed a delay in austerity targets if growth remains stagnant, meaning the goal of cutting the deficit to GDP ratio down to 3 percent by 2015 may have to be further pushed back. It should be recalled that the root cause of the fiscal and economic disaster suffocating the Irish nation was the decision by Dublin’s politicians to force the country’s taxpayers to guarantee the debts of Ireland’s private banks. By socializing the losses of the private banking sector, the ruling circles in Ireland have condemned their fellow countrymen to many years, and possibly decades, of financial misery.







 To view the official trailer YouTube video for “Wall Street Kills,” click image below:

In a world dominated by high finance, how far would Wall Street go in search of profits? In Sheldon Filger’s terrifying novel about money, sex and murder, Wall Street has no limits. “Wall Street Kills” is the ultimate thriller about greed gone mad. Read “Wall Street Kills” and blow your mind.



Is Ireland On The Brink Of Economic Collapse?

November 23rd, 2010 Comments off

The Taoiseach of the Republic of Ireland, Brian Cowen, has a paper-thin majority of a mere three seat in the Dail, Ireland’s parliament. Its junior coalition partner, the Green Party, is already threatening to pull out and force a general election, unless Cowen agrees to call new elections by late January. Whether or not the current Irish government is forced into an immediate dissolution of the Dail, or agrees to new elections in January, it faces certain retribution at the hands of an increasingly irate and depressed Irish electorate.

There are two primary causes to the soon-to-be finale of the Cowen government. The first involves the disastrous management of the Irish economy and its acute financial crisis. Reckless speculation by the Anglo-Irish Bank created one of the worst banking crises amid the global financial crisis of 2008. As in other countries facing a similar predicament, the Irish government used the taxpayers of the nation as a backstop for the banking system. In effect, the troubled institution was nationalized, and the entire banking system had its deposits and obligations underwritten by the government, meaning the taxpaying citizens. The net effect has been an ever-escalating figure for the cost of bailing out Anglo-Irish Bank, and the concomitant public obligation to cover the surreal expenses of the banking bailout. While the banking system was being “saved,” the ordinary citizens of Ireland have been punished with higher taxes in synchronization with sharp cuts in social appending, as the unemployment rate reached historic highs.

Despite the cuts in public spending and tax increases, the cost of the bank bailout and the increasing spreads  on government bonds defied the ability of a nation of four and a half million people to cover such a large fiscal obligation. Yet, when word leaked out regarding the secret negotiations between Dublin, the EU, IMF and European Central Bank over the terms of a bailout of Ireland itself, the Cowen government at first sharply denied the widely circulated accounts. It turns out that the Cowen government was lying through its teeth, and has now openly admitted to the need for an EU bailout of the Republic of Ireland, to the tune of at least $120 billion.

With Ireland already confronting an annual deficit equal to about 35 percent of its GDP, the even higher levels of tax increases and public spending cuts the EU and IMF bailout will require, on top of the emergence of political instability, point to the meager prospects for the long-term future of the Irish economy. Her sovereign debt crisis is now clearly of catastrophic proportions, and the Irish nation is facing the very real danger of a sustained economic implosion.

First it was Greece and now it is Ireland. In each case, the European policymakers boasted that their massive binge of public borrowing to put together sovereign bailout packages has saved the continent from a much worse financial and economic disaster. But given their track record, how certain can we be that Portugal and Spain won’t be the next dominos to fall? The financial and economic disarray within the European Union appears to be metastasizing rapidly.

Irish Debt and Banking Crisis Creates Political Time Bomb in Ireland

November 20th, 2010 Comments off

At first the Irish government, headed by Brian Cowen, the Taoiseach, denied the reports that Dublin was talking to the European Central Bank about a bailout. But with the ECB, EU and IMF shuttling into Dublin by the planeload for meetings with key Irish economic and financial policymakers, Cowen and his ruling party have been forced to admit what the whole world already knew; Ireland is in advanced negotiations with the ECB and IMF for a vast financial bailout, measured in the tens of billions of euros.

In a fierce editorial, the Irish Times asked rhetorically; is this what Irish patriots sacrificed their lives for in the Easter Rebellion of 1916? As the editorial points out, Ireland struggled for its national sovereignty, not for a corrupt and incompetent clique of politicians to bankrupt the nation, forcing it to beg for a handout, in the process eroding what is left of its national sovereignty.

As  in Iceland and Greece, the financial and economic crisis in Ireland, in her case driven by the reckless speculation of the Anglo-Irish Bank that necessitated a massive taxpayer bailout (according to the same politicians who allowed the speculation in the first place) is about to morph into a political crisis. Until recently, some commentators have expressed amazement at the restraint of the Irish people, as their taxes exploded along with the unemployment rate, while social spending plummeted in order to finance the massive bailout costs involved in rescuing Anglo-Irish Bank. However, with the combination of a looming bailout with strings attached, coming after the outright deception of the Irish government, public anger may be about to explode. The revised Anglo-Irish bailout costs will push Ireland’s deficit to an incredulous 35 percent of GDP. This is not only unsustainable; it will break the back of what is left of social restraint in Ireland. The bailout package being put together by the ECB and IMF is unlikely to prevent the public outrage that will gather momentum, as hinted at in the Irish Times editorial.

Irish Prime Minister Predicts Cost of Anglo Irish Bank Bailout for Ireland’s Taxpayers is 70 Billion Euros

September 4th, 2010 Comments off

Ireland’s own case of a financial institution that is “too big to fail” will probably in the end impose a penalty of €70billion on the already beleaguered people of Ireland, according to a prediction made by the Irish prime minister, Brian Cowen . The tale of woes concerning this bank I have reported on in a previous blog posting.  Let us just point out that if this projection is correct, every man, woman and child in Ireland, which has a population of about 6.2 million, will pay 11,280 euros for this financial disaster not of their making, or about 14,500 U.S. dollars at the current exchange rate.

If a typical Irish family of four is told they must fork over approximately sixty thousand dollars to bailout the no doubt well paid (and well bunused) executives of  Anglo Irish Bank and their bond holders, will they remain quiescent? On top of massive unemployment, brutalizing austerity and a shaky economic future, the people of Ireland must now add  higher future taxes to pay off the excesses of a few to their growing tab of  financial and economic suffering.

Ireland’s Economy In Free Fall Collapse

April 12th, 2009 Comments off
Once known as the “Celtic Tiger” for its sustained record of double-digit economic growth, Ireland is now in the midst of a financial tsunami. Unemployment is soaring, economic activity is contracting, banks are over-loaded on toxic assets and government spending is out of control. In many ways, Ireland seems to be a microcosm of the United States, only with a Gaelic accent. However, sheer size and the status of the U.S. dollar as the world’s reserve currency has delayed the full replication of what Ireland is currently experiencing. For that reason, what is occurring to the Irish economy in the present may be a window of what might soon lie ahead for the United States.
The strength of Ireland’s economy during its glory years was largely based on the seeming success of the globalization economic model. International businesses, especially in the high technology sphere, set up shop on the Emerald Isle, taking advantage of a well educated, cost-competitive workforce in close proximity to the European mainland, and an economy fully integrated into the Eurozone. This globalized corporate presence ended the historic migration of Irish workers overseas, as the local economy’s demands even drew immigrants from Eastern Europe into Ireland. The increase in domestic opportunities contributed to a massive explosion in property prices. Irish banks bet heavily on securitized assets, as the financial sector assumed a leading role in the Irish economy. This is a scenario we have seen elsewhere, and led to Ireland being especially vulnerable to the consequences of the Global Economic Crisis.
Since the onset of the synchronized global recession, the Irish economy has undergone a rapid contraction, erasing almost overnight the economic gains of the past several years. Unemployment in the Irish republic stands at near 11%, and is likely to get much worse. According to Ireland’s Central Statistics Office, the nation’s GDP shrank by 7.5% in Q4 of 2008. Added to these grim numbers hangs the dismal situation characterizing Irish banking and financial institutions; approximately $110 billion of toxic assets are eroding their balance sheets.
The Irish Taoiseach, Brian Cowen, has reacted with desperation. Recently, his government unveiled a second emergency budget. Ireland’s finance minister, Brian Lenihan, submitted a spending plan that contained a smorgasbord of selective tax increases and spending cuts. These steps were taken in recognition of the dual emergency facing the Irish economy. The once “Celtic Tiger” is not only incurring massive unemployment and social distress; the collapse in revenues has driven the nation’s budget deficit through the roof. The steps proposed by Lenihan sought to reduce the government’s budget deficit from nearly 14% to about 10.75% of GDP. These steps were not nearly enough to comfort the worried rating agencies. Standard and Poor’s has removed Ireland’s coveted AAA rating, while Moody’s downgraded all 12 Irish banks.

With expenditures of 55 billion euros and revenues falling below 35 billion euros, Ireland is facing the daunting paradox confronting a growing host of nations, including the United States. The politicians maintain they cannot implement draconian spending cuts in the face of severe human hardships being created by the Global Economic Crisis. Yet, mathematical realities may constrict the ability of political leaders to infinitely borrow money in order to maintain high structural deficits. With the rating agencies having made their move, the ability of Ireland to finance its deficits through the largess of the global credit market will become increasingly more problematic. It appears that the IMF may be the ultimate lender of last resort for Ireland, and that kind of assistance will impose costs of its own.

The economic catastrophe facing Ireland will cause sorrows that cannot be suppressed by a pint of Guiness. Nothing less than national insolvency threatens this once robust economy. And lest the United States pretend that the economic collapse now underway in Ireland is irrelevant to its own situation, the elements that have brought down the “Celtic Tiger” are almost identical to those now eating away at the very foundation of the U.S. economy.



For More Information on “Global Economic Forecast 2010-2015” please go to the homepage of our website,