The IMF Money Trap

sking81

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Aug 24, 2009
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Im probably simplifing things quite a bit here, but my take on our current situation is this-at the minute, we have no means of borrowing from the international bond markets, who basically priced us out due to our rotten banking system and fear of the IMF having to enter the country.

However now that the IMF are here, the markets are still refusing to loan to us (bonds are over 9%) even after the governments 4 year plan was made public, most likely because they have seen the IMF's affect on other countries, and know theres not a hope in hell their going to save us.

All suggestions point to us being out of the markets for the next three years or so, forcing us to loan off the IMF, as they will be the only party that will lend to us. The markets will see us as nothing more than a debt recycling economy. Which means we're stuck borrowing from the IMF for the forseeable future.

The IMF appear to be loaning to us at a penal rate we wont be able to pay back (between 5-7%). As long as they keep their rate lower than the bond markets, we'll have no option but to borrow from them.

The incredibly worrying thing for me, is that the IMF also appear to have requested our state assets (mines, natural resources etc would fall under this catageory) be put up as collateral for our IMF borrowings. As we slip further and further back with our debt repayments, they'll slowly start turning the screw and selling off these assets, peice by peice, until theres nothing left. At which stage we'd have been better off defaulting in the first place.

I think if we default (and preferably leave the euro) theres a good chance we can rebuild our economy relativily quickly through exploiting our natural resources (the ones that havent been sold already) and exports. By natural resources, I mean more specifically our oil, gas and uranium deposits as opposed to wind energy and the like.

If we try pay back this debt, (that most of us arent even remotely responsible for) we will face years of slow economic strangulation, political and social unrest (crime is going to skyrocket), only to have absolutely nothing at the end of it.

We would be a lot better off to admit our failures (I think the ego's of Cowen and Lenny are playing an extremely understated role in all this), default, learn our lessons, and move on.

Would you say this is the correct option or no?
 


sport02

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Personally default would be good, but with tensions mounting even more with the general public, and a huge march planned for saturday, coupled with political doubt, involving the bye-election and fear that Cowen was seriously thinking about going to the Aras this week.
Well after all that we seem to have put the sh1ts up Sarkosy and Merkel, don't think they slept too well last couple of nights, so they had an emergency phone call this evenning, and hey presto, the Irish goverment have been politely given a kick up the backside, and told the deal must be struck by Sunday.

Now if this is the case, well weren't we told we could not get the deal unless we passed the budget, so personally when Brian Clowen and Comical Pathological Liar Lenihan signs on the dotted line on Sunday, the following day Clowen should go to the park and resign, call a general election.
 

myhonorisloyalty666

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Nov 19, 2010
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Will they insist on a 1 child policy? Every aborted embryo could be used for stem cell treatment.
Irish girls are very pretty so if we relax our prostitution laws this country could become the sex capitol of Europe - the Muslims are shutting down Amsterdam's red light district so it gives us a hole we could fill if you excuse the pun.
Croagh Patrick is apparently sitting on a huge gold pocket so it will become the largest open strip mine in Western Europe.
Because all the farms are going to go bust, we could plant deciduous forests all over Ireland and release cattle and sheep to go feral so that big game hunters could come over to kill them with high velocity rifles.
With all the hundreds of thousands of surplus human beings sitting on their backsides doing nothing we could invite the US military to use them as simulated terrorists they can kill with their new Predator drones or the hunter killer Terminator robots they have in the pipeline.
There's lots of ways we can raise money.
Don't lose hope guys and girls.
Cheer up!
 

Future

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Sep 25, 2010
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To me its the European Commission and ECB that seem to be the ones pushing for harsh and penal interest rates.

If it was the IMF on their own I think we'd be better off.
 

sking81

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Aug 24, 2009
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Im actually a pretty positive person petunia, I just see this as the most realistic outcome of this crisis.

Anyways-

Will they insist on a 1 child policy? Every aborted embryo could be used for stem cell treatment.!
I doubt the Pope would allow it.

Irish girls are very pretty so if we relax our prostitution laws this country could become the sex capitol of Europe - the Muslims are shutting down Amsterdam's red light district so it gives us a hole we could fill if you excuse the pun.
Ironically enough Im of the firm belief prostitution should be regualted. It is in numerous other European states, as well as Nevada in the US, why not here? Tax revenue would get a boost thats for sure...

Croagh Patrick is apparently sitting on a huge gold pocket so it will become the largest open strip mine in Western Europe..
Maybe, maybe not. What we do have is approx 10 billion barrels of oil off our west coast.

Because all the farms are going to go bust, we could plant deciduous forests all over Ireland and release cattle and sheep to go feral so that big game hunters could come over to kill them with high velocity rifles...
Our indiginous farming would be crucial in case of default...see Iceland. They pretty much had to go back to their local cusine (McDonalds actually left the country), I'd imagine that our agricultural ability to provide for ourselves would lead to the farms staying open, and our cattle and sheep peacefully grazing away until we eat them.

With all the hundreds of thousands of surplus human beings sitting on their backsides doing nothing we could invite the US military to use them as simulated terrorists they can kill with their new Predator drones or the hunter killer Terminator robots they have in the pipeline
Naaa we'll just have them emigrate and become labour fodder instead.
 


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