Posted on 11/22/2010 10:14:54 AM PST by FromLori
In this interview with the RT, Jim Rogers says what everyone except a few bankers and corrupt (soon to be unemployed) politicians grasp: namely, that Ireland should go bankrupt. Instead, the government is forcing the country into a tough spot, where social tensions are flaring, and could erupt into an all out social conflict, confirming that the interests of its people is the last thing the Irish government cares about, and is only concerned about preserving what is now virtually proven to be a failed model (with even JPM saying so tongue in cheekly), and prevent losses at all major German and English banks. Quote Rogers: "It would teach everybody a good lesson, and in the end Europe would be stronger for it, and the EUR would be stronger... You can not spend staggering amounts of money that you don't have of other people's money that you don't have because somebody has to pay the piper. This is ludicrous. This will cripple the Irish economy for years to come. In the future Ireland will be crippled because everything they earn will go to pay off old debt. There is no reason why taxpayers around Europe or in Ireland should pay for other people's mistakes. The bondholders and the stockholders of banks should lose money"... So simple, yet so irrelevant when dealing with a dying economic model.
http://www.youtube.com/watch?v=1tk2IFsUtJc&feature=player_embedded
“They bought their tickets, they knew what they were getting into....I say, ‘Let ‘em crash.’”
If Jim Soros ne Rogers says it, it’s because him & his butt buddy have a lot of money riding on it.
I hope they lose their shirt.
Ireland will sink/swim/whatever.
“...the interests of its people is the last thing the Irish government cares about...”
.
Not a very unique situation — there is an other country where this is happening, which has a capital named after its first president..
Germany would love to keep sitting high and pretty forever dominating the Eurozone, but this is not possible for two reasons:
1. Discordant fertility rates mean that France, not Germany, will have the largest population in the E.U. by the middle of the century.
2. After Greece and Ireland, Portugal and Spain will be next (hence the acronym PIGS, which by the way Portugal has denounced as "racist"). This domino effect will spread to Italy (hence the extension PIIGS), and if the final showdown has not yet happened, possibly to France as well. But the Euro is likely to be defunct before that happens.
The best solution for Greece, for Ireland and in the long run for all the European countries is to force these first two to exit the Eurozone and revive the drachma and punt. Then they can declare bankruptcy, default on the debt and let their currencies collapse. This is the solution that will best allow them to preserve fiscal independence--especially important to Ireland as its 12.5% corporate tax rate was largely responsible for its spectacular economic development in the 1990s and 2000s--and to preserve living standards at least at modestly dignified levels. The spectacle will be just ugly enough to discourage other countries from following suit. Moreover, this will avoid putting the bailout burden on the backs of we the taxpayers in France and Germany.
Why is this option not being pursued? Because it is the route that is most likely to leave sovereign creditors in the dust. Of course these irresponsible high-risk lenders do not deserve to be bailed out, but that is just the way of things. Angela Merkel may have sold herself as a fiscal conservative, but she is proving to be just like all the other Eurocrats in catering to the international plutocracy rather than defending her own country's interests. Ireland's political parties, for their part, are not likely to be so bold as to stand up to pressure to remain on the Euro, as they have been too committed to the status quo for too many years.
The irony, of course, is that in so desperately clinging to the European ideal, Merkel is pursuing a course that will ultimately destroy the Euro and the E.U.: France and Germany may not be able to bail out Spain when and if this last goes and will definitely be exhausted by the time Italy's turn comes.
The ultimatum is this: either the PIGS countries are expelled from the Euro, or everyone is. The former choice is infinitely preferable for European morale. The time to choose is ticking away...
“They bought their tickets, they knew what they were getting into....I say, ‘Let ‘em crash.’”
Do you mean the banks or the people? That Debt belonged to the Banks but they Socialized the losses much like they did here with the bailouts only on a grander scale.
http://finance.yahoo.com/news/Why-the-Irish-Crisis-is-Going-usnews-4028366968.html?x=0
Here’s The Market Ticker Guy’s take on it...
“The ultimate problem with bailouts is that everyone seems to think there’s a free lunch. There isn’t. You can rob someone to pay someone else, but you can’t conjure up money from nowhere. But bailouts inherently wind up taxing the people who got robbed in the first place to pay off the people who made the bad bets and lost money. When it comes to bailing out banks it gets even worse due to the leverage involved - the banksters keep the money, including their salary and bonuses, while the people get robbed not only in the form of losses on their so-called “safe” investments but then again when they are taxed to fund the bailout!
There’s nothing like getting stuck up at gunpoint and not only losing the hold-up money but then being taxed a second time to pay for the robbery in which you were victimized!”
http://market-ticker.org/akcs-www?post=172991
Jim Rogers “The Great”
If they do go bankrupt it would be the best thing
Maybe Ireland will be a good place to go
Don’t bailout the Banks and don’t bailout the homeowners.
Keep Government out of the free market and this situation will sort itself out: - messily, but it will sort itself out.
A massive wave of foreclosures, a movement into rentals, a collapse of housing and rental prices - it would be painful but there’s no real alternative.
A lot of Irish people brought houses at immense prices which are in no way sustainable. Their creditors should end up losing money, and so should they. No-one else should be involved.
And for their children and their children's children, they will be better for it. All bailouts do is delay the inevitable, and make the inevitable much worse in the end.
I completely agree that is what capitalism is all about you either succeed or you fail but you should not be bailed out by others that’s communism whether it’s bailing out the banks or the people.
Government manipulation of markets, economy and currencies is also wrong. Not only do that run the risk of loosing control (which I believe they have), they also great artificial demand and supply that leads to inefficiencies and ultimately disaster when food and energy shortages result.
create = great
That’s the NWO plan coming to pass it seems enslaving the people and to think the Commies in China of all places are temporarily holding them back (albeit for their own self interest)from a global currency/global government though I suspect not for long. The Elites I’m sure will work that out amongst themselves.
http://www.acivilsociety.net/detail/alinsky-v-china
I agree and am preparing for those shortages.
I agree. Also, it really pisses me off that I'm supposed to bail out a bunch of US banks, companies, and individuals who got greedy and ignored the danger signs with respect to loans made. Bogus debt instruments were bought because they promised unrealistically high rates of return which equally greedy investors bought up. I'm having a hard time seeing why such two-party transactions now wants to drag me (and my money) into the fray. Screw 'em...let them suffer the losses. If it screws up someone's pension fund, too bad. Maybe the pension owners should pay closer attention to who they elect to their Boards and what those Boards are doing. Not my problem...well, at least it shouldn't be...
Jim Rogers should be stripped naked and be publicly beaten by drunken Irishmen with Shillelaghs until George Soros pays his ransom.
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