There is no safety in these numbers
Default is inevitable and the 'rescue plan' has only succeeded in delaying it, writes Constantin Gurdgiev
Published 05/12/2010 | 05:00
Last week's deal between the Irish Government and the ECB/EU/IMF troika -- the details of which continue to trickle down from the stratospheric heights of secretive bureaucracies to the lowly taxpayers -- has been anything but a rescue for our battered economy.
Far from providing a resolution to Ireland's financial and fiscal crises, it made the restructuring of our banks' debt inevitable, no matter what the conditions underlying the deal says.
Instead of resolving the core problem of catastrophic losses within our banking sector and the related problem of the fiscal insolvency of our Exchequer, the ECB/EU/IMF loan created an internationally binding agreement that officially transferred the debts of our private banks onto the shoulders of Irish taxpayers. By doing so, the EU, with the complicity of the Irish Government, has delivered a full-blown contagion across the entire Irish economy.