In the Telegraph we read an article of Ambrose Evans-Pritchard titled: Ireland is ECB’s sacrifical lamb to satisfy German inflation demands.
Of course, it’s Easter.
What’s happening on the Emerald shores?
We can bring it down to the Budget of Hell which was released last week.
The core of everything is the following
It (Ireland) was betrayed again by the European Central Bank, which opened the monetary floodgates early this decade to nurse Germany through a slump, holding rates at 2pc until late 2005, despite flagrant breach of the ECB's own M3 money targets. Fast-growing Ireland and the Club Med over-heaters were sacrificed to help Germany. They were left to cope with credit bubbles as best they could.
Ireland struggled. Construction reached 21pc of GDP – a world record? – compared with 11pc in the US at the peak
Ireland risks a deflationary slide into bankruptcy. Especially in the effort to swallow 90 bln euro of toxic bank debts – or 50% of their GDP.
Ok, this is only one view.
We’ll enjoy the springtime here at the sea side and hope that everything will work out fine. The Celtic tiger is only wounded. Not death.
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Of course, it’s Easter.
What’s happening on the Emerald shores?
We can bring it down to the Budget of Hell which was released last week.
The core of everything is the following
It (Ireland) was betrayed again by the European Central Bank, which opened the monetary floodgates early this decade to nurse Germany through a slump, holding rates at 2pc until late 2005, despite flagrant breach of the ECB's own M3 money targets. Fast-growing Ireland and the Club Med over-heaters were sacrificed to help Germany. They were left to cope with credit bubbles as best they could.
Ireland struggled. Construction reached 21pc of GDP – a world record? – compared with 11pc in the US at the peak
Ireland risks a deflationary slide into bankruptcy. Especially in the effort to swallow 90 bln euro of toxic bank debts – or 50% of their GDP.
Ok, this is only one view.
We’ll enjoy the springtime here at the sea side and hope that everything will work out fine. The Celtic tiger is only wounded. Not death.
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