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بدھ، 17 نومبر، 2010

European Union on the Verge of Breaking Up

Instead the exact opposite is taking place as the Irish economy contracts due to economic austerity whilst its bankrupt banks are sending the countries debt and liabilities soaring ...

Ominous reports of an imminent economic collapse emerge out of Euro zone as some former staunch allies of US-led global casino initiative in Europe, before and after invasion of oil-rich Iraq, sink deeper into debt crises. Ireland, Portugal, Spain and Greece whose former head of states preached beginning of a new era in the global system alongside George W. Bush's war on terrorism policy, are now effectively bankrupt countries without any hope of recovery soon. 
All of the above countries must choose either drastic cuts in their fiscal spending and accept bankruptcy bailouts or simply move out of European Union system completely.  Ireland is immediately in danger of financial ruin if it does not accept a European bailout. But Irish government has so far refused to accept that measure and is even contemplating to move out of Eurozone all together.
If Ireland decides to end its participation in the European Union, next will be Portugal with 1.7 percent of Euro zone GDP. Spain also experiences a near crisis banking system and could fall victim if the situation in Ireland and Portugal worsen. Last year Ireland had decided to impose a significant austerity measure to reduce the country's deficit, but for ordinary people, things have not changed for the better.
According to Nadeem Walayat, the harsh austerity measures that Ireland has endured during this past year have only made Ireland's financial problems even worse....
The people of Ireland having endured over a year of austerity on the promise that it was all necessary to suffer pain today by cutting public spending so as to reduce the annual budget deficit to sustainable level for economic gains tomorrow. Instead the exact opposite is taking place as the Irish economy contracts due to economic austerity whilst its bankrupt banks are sending the countries debt and liabilities soaring, thus resulting in a far worse budgetary position than where Ireland was before the austerity measures were implemented as the bond markets are waking up to evitable debt default which is sending interest rates demanded to hold Irish debt soaring to new credit crisis highs. 
Leading analysts believe more conscientious and politically aware Europeans will soon learn how to put in practice the actual prosecution of the main culprits including the former US administration officials,  the current one and their European cohorts behind the current global economic/institutional mess.

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