How to dismantle a financial bomb
Published 03/01/2011 | 05:00
Bono should forget debt relief in Africa. He should focus on debt default for Ireland. The country has accepted a bailout plan that looks as bad as the reparations Germany was forced to pay to the Allies after World War One.
Spiralling debt led to disaster in Germany and it is a well-trodden path to poverty perfected by African despots. Ireland's most famous musical frontman should start to lobby the EU for debt forgiveness and to beg the Dail to legislate a default. Default is not the radical option, it is the rational option.
When the Finance Minister insured the depositors and 100pc of the bondholders in the banking system, he boasted to the world's financial community that the citizens and the taxpayers of Ireland would pay off a €400bn bar tab taken on by 50 drunken Irish real-estate speculators. The Finance Minister baptised the citizens of Ireland with this burden by issuing a one-page press release. Bono has seen corrupt regimes all over Africa do similar things by government fiat -- a corrupt few impoverish the innocent many and the innocent pay the interest for generations. Bono should lobby the Dail to reverse this decision and Ireland should default on the banking debt.