Irish government takes a gamble
After a week when the Irish government has been under significant pressure with regards to the proposed banking bailout, which could see national debt reach 30% of GDP, it seems that the Irish authorities are prepared to take a massive gamble. For some time they have refuted rumours of a potential international bailout instead attempting to talk round investors in relation to the possible €35 billion bailout required for the Allied Irish Bank. However, when this particular strategy began to founder it seems the authorities have now moved to a different tack.
In what many believe is a very dangerous challenge to investors around the world, the Irish authorities have confirmed that any collapse in the financial sector would ultimately see the economy collapsed and an international bailout required. So there has been a major shift in policy from a denial of major problems within the economy and the banking sector to an outright, support us or else!
The authorities will soon learn that investors do not take well to ultimatums as they have shown over the last week when as we have mentioned on numerous occasions, the "tail has been wagging the dog". In other words, investors have ignored political comments and have taken a very different approach.
Share this..
Related stories
Should politicians control the economy?
As we approach the next general election there are serious concerns that the UK government, and other governments around the world, will use taxpayers funds to shore up the economy in the short to medium term and offer "incentives" to those who may vote for them. While it will be the Labour government which will attract his attention in the short term there is no doubt that each and every governme...
Read MoreGeorge Osborne under attack for stating that the pound is under pressure
Shadow chancellor George Osborne is today under attack from Labour for suggesting that Gordon Brown's economic policies have caused the recent run on sterling. The situation bears strange similarities to Alistair Darling's comments about the collapse of the Icelandic economy although the problem is that the run on the pound is actually the fault of the UK government.
Gordon Brown ha...
Will the Bank of England revamp its quantitative easing programme?
Tomorrow's meeting of the monetary policy committee could be one of the more eventful of recent times with opinion split as to whether the Bank of England will inject more money into the quantitative easing programme or let it run its course when it hits £200 billion limit. The "clever money" would appear to be on a suspension or closure of the quantitative easing programme although there are con...
Read MoreIs immigration affecting job prospects in the UK?
While immigration is a very difficult subject to discuss it is one which has been brought up by the Labour Party in the context of British jobs for British workers, something we have heard of before but never seen any action. The reason why there has been no action is pure and simple, it is against the EU's open door policy which lets EU citizens move around Europe with the same rights as they ha...
Read MoreInflation falls to 2.4 per cent
Inflationary fears in Britain have again subsided after the latest official figures revealed a dip in June.According to the Office for National Statistics consumer price index (CPI) inflation, the government's target measure, fell to 2.4 per cent last month the lowest level recorded in 2007.In May CPI inflation was recorded at 2.5 per cent, with June's decrease in inflation preceding the Ba...
Read More