So the UK Government can find £7bn to help bail out Ireland

Yet another Euro country is requiring a huge bailout, and this time, the UK Government is planning to aid Ireland with up to £7bn.

How strange that our government is cutting millions from support of its own people but is quite happy to spend money bailing out other countries who's leaders have managed their economy so badly.

Dare I mention NWO in all of this?

reply to post by Freedom ERP


Not uk, The european Union.

The uk are giving a fraction of the overall amount lol

www.guardian.co.uk...

We're not doing it out of the goodness of our hearts. Its another finger in the leaky dam, nothing more.

We are almost in as bad a situation as they are. Its all a confidence trick. A market confidence trick specifically :-)

there really is only two possibilities here.

1) the government lends 7 billion from the banks which it pays back with interest, and then charges the british public to pay back the loan, or make even bigger cuts to pay back the loan.

which means the british public are worse off.

2) the cuts are a load of rubbish and there is plenty of money the government can pull out its A***, the cuts are just to make people worse off and is a scam/excuse to give less for the same amount of tax etc in return.

either way it is an outrage, unbelievable, but east enders is on all week and the whole thing is shown on a weekend,
the football is getting exciting what with chelsea losing 3 in 4, and robbie williams is back with take that, so all is good to the majority of british people.

reply to post by Freedom ERP


Well I would explain the whole thing to you but instead I will just tell you in plain words. The help offered by the UK to Ireland (£7bn). The only reason why the UK is helping Ireland is because if Ireland declares bankruptcy the british economy would suffer greatly and at the end of the day the £7bn would look like pocket money in comparison.
Also the amount of Irish inmigrants crossing the border would collapse the job market in the UK.

Originally posted by TedHodgson
reply to post by Freedom ERP

 

Not uk, The european Union.

The uk are giving a fraction of the overall amount lol

www.guardian.co.uk...

edit on 22/11/10 by TedHodgson because: added content

even still where they getting that money from? we have to make cuts but can give loads in aid when it suits.

it just does not make sense.

reply to post by lifeform11


3) The UK govt is massively in hock and cannot take the chance that Ireland will default and upset the bond market. Thus increasing the interest UK must pay on its gigantic borrowing and opening the hole up even deeper underneath us.

Its an investment, or another attempt to forestall the inevitable depending on your perspective.

What I find hard to understand is that when this current UK Government took over they told us the kitty was empty and serious financial cuts would have to be made, then months later said that overseas aid would be increased to 8 billion. Then this latest that we to lend Ireland 7 billion. Are the telling us porkies ??

reply to post by TedHodgson


Did you read my post and then assume that it was about the EU bailout? My post is about the point that my government can find £7bn to bail out Ireland.

Originally posted by Freedom ERP
Yet another Euro country is requiring a huge bailout, and this time, the UK Government is planning to aid Ireland with up to £7bn.

How strange that our government is cutting millions from support of its own people but is quite happy to spend money bailing out other countries who's leaders have managed their economy so badly.

Dare I mention NWO in all of this?

I'm really surprised that no one is talking about this, but why do you really think we can't afford to the the Irish economy fail?

What happens when a nation becomes bankrupt and unstable?

Power Vacuum.

EXODUS!

Where are those people going to go but the UK? How the hell will the UK government handle that massive influx of people?

I'm angry that the government isn't telling the truth and explaining exactly why we can't see Ireland become an unstable mess. Our government is still thinking about "market confidence" that's why they won't tell the truth.

But I also now understand why we have to do it. I don't agree with any of it, and I think Ireland, Portugal, Spain and England will all falter financially, but I understand why our government has made this decision.

reply to post by justwokeup


which would come under option 1 in my post? borrow the money? charge the british public?

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 pay

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

reply to post by manitu69


So it is worth us bailing out Ireland to the tune of £7bn to protect £15bn of exports and £12bn of imports. A balance of payments of £3bn.

reply to post by Freedom ERP


I seriously have to wonder if we are at the point where the global financial system is so complex that no one alive actually knows how it really works, it''s almost like some self aware entity that has a life of it's own and no one can stop.

reply to post by getso


The kitty is empty. Taxation does not cover expenditure. Has not for a while. The difference is the deficit.

The deficit is covered by raising money from the bond market. Like a national visit to a loan shark. We live as a nation on tick.

The national debt is the accumulation of the sustained year on year defecits. We need new loans to cover old loans coming due.

The interest we pay on those new loans depends on how much confidence the bond market has that we can pay back. Thus our massive debt is heavily dependent on how nervous the bond markets are.

If Ireland defaults on its govt debt it'll send the market into a frenzy which will impact our ability to borrow at tolerable rates. The 7 billion is obviously reckoned to be a prudent hedge against this scenario.

Its cheaper to borrow it and give it away than have a default spook the market and put us in deeper doodoo.

I think the ties that bind run deep, regardless of whether people accept this or not, and I have no problem providing aid to the Irish people.

But I resent propping up a system I have little faith or belief in.

And in light of the alleged reasoning behind the recent cuts, which in reality are nothing more than a spiteful and hateful attack on the everyday people of this country, it is particularly hard to stomach.

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 pay

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 them 7bn.

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.

Originally posted by TedHodgson
reply to post by Freedom ERP

 

Not uk, The european Union.

The uk are giving a fraction of the overall amount lol

www.guardian.co.uk...

edit on 22/11/10 by TedHodgson because: added content

It was a bi-lateral loan according to tonights news on RTE.

UK 2009 Exports and Imports

According to the above, the balance of payments with Ireland was approx £3bn in our favour, so spending £7bn is good business. I want to meet the finance minister that can explain we should spend £7bn to protect £3bn.

Maybe, it is time we let a country go to the dogs and take the hit on the bond markets.

My annoyance is that we are facing huge cuts in the services, and just think what £7bn can be spent on. Sorry, Ireland was forced into the Euro and it should be the Euro countries that foot the bill.

Let them sink or swin but not with my money. Spend British taxes on Britain, not the Republic of Ireland. I would rather this £7bn was used to re-generate the Northern Irish economy, if we have to spend money on the Island.

reply to post by lifeform11


Kind of.

You have to remember that the UK spending cuts are only sufficient to calm the nerves of the bond markets. Its basically PR for the benefit of the markets.

The cuts have little impact on the deficit never mind the debt (i explain the difference in my other post). The interest on our national debt in 2010 was £42 Billion. Our overall national debt will be over £1 Trillion in the near future.

Its too big hole to fix with 'belt tightening' of any measure. An extra 7 billion added to a 1 trillion mountain is small beer. However a % point increase in our borrowing charges is terrible. Thats why we are helping ireland. Thats why ireland has had 'help' rammed down their throats in the last week.

We are suffering so the markets wont get spooked and collapse the whole house of cards.