posted on Nov, 22 2010 @ 03:08 PM
Originally posted by davespanners
I read the article that was linked too and it just made me more confussed.
So the UK has a steak in the whole European bailout package, but we are also going to give Ireland Bilateral Loans.
We are giving them the loans so that Ireland can afford to pay back the loans that we gave them in the first place which otherwise the couldn't
What in the name of all that is holy is the point in that??
It's at this point that I would just kick the monopoly board over and walk out of the room
No. Because we are not in the Euro, we chose to make a direct loan to Ireland for our "representative share" of the larger bail out. We are lending
And, as I understand it, we are doing so because Ireland is our fifth biggest trade partner (I think). If Ireland falls, we will loose a lot more than
7bn. Our financial ties are highly complex, but we have to have their bonds stable to make our money back.
his 7bn serves to reassure the wider world that Ireland is safe for investment, thereby getting our money back in the future.
But, it's also because we cannot afford to have millions of immigrants coming into England from Ireland.
Neither can we allow a violent faction of the previous IRA/RIRA (or any one of a number of radical Irish groups) to destabilize the country.
Look at what happened in other nations, and without a bankruptcy. Governments have fallen. Rioting in the streets. Massive security problems.
If Ireland indeed became bankrupt, can you imagine the opportunities which would arise for radical groups?
However, I don't think any of this will actually make any difference. I firmly believe we passed the point of no return before most of us even knew
how bad it was. And I don't think we even know the true magnitude of this financial situation.