November 30th, 2010

Iceland Shows the Way Forward for Ireland:
Decouple, Default, Devalue and Develop

Iceland’s President, Olafur R. Grimsson, told Bloomberg TV on Friday that his country is better off than Ireland because they allowed the banks to fail two years ago and devalued the krona:

“The difference is that in Iceland we allowed the banks to fail. These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”

The Irish bank bail-out is being foisted on them by the EU and the IMF whereas sovereign Iceland let the banks go bust and restructured the financial sector to keep the commercial sector serviced. As a consequence, “Iceland is faring much better than anybody expected” says Grimsson:

“How far can we ask ordinary people – farmers and fishermen and teachers and doctors and nurses – to shoulder the responsibility of failed private banks… That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”

Under this plan 20 cents of every euro of Irish taxes will go to pay the interest on the bank bail-out debts. The Irish bail-out plan will cost €54,800 per Irish household. Ireland’s future thus looks a lot more bleak than Iceland’s path of debt default and a devaluation of 60% two years ago which has the country rebounding: exports and manufacturing are growing by 20%, tourism is back near all-time highs, real wages are rising, unemployment is declining sharply, interest rates fell from 18% to 5.5% and the stock market has rebounded 50% from its lows. In contrast this euro-banker’s bail-out will only burden the next generation of Irish who don’t flee with crushing debts not of their making…

Britain and europe should keep their bail-out billions rather than foist them on Irish taxpayers to cover the responsibility for bad investments made by their own private banks. They can use the billions to bail-out their own banks directly if they want, without involving the Irish taxpayers…


104 Comments

  1. 1

    I hope Ireland slides into utter fucking financial misery….

    Like

    • 17
      It's a Square world. says:

      I don’t belieeeeeve it.

      FIFA corruption is to be investigated by the IOC. That would be like having MPs corruption investigated by MPs.

      at least we all know what the outcome will be.

      Like

    • 25
      misterned says:

      When everyone was predicting absolute doom for Iceland two years ago if they did not adopt the Euro, I thought that they would be able to prosper far better outside the Eurozone.

      Like

    • 45
      Leprechaun says:

      What’s really mind blowing is that with the whole western banking system and Eurozone viability hanging on their word the Irish politicians couldn’t negotiate a better deal.

      They must’ve been some pretty amazing brown envelopes.

      Like

    • 73
      Worthless Lib Dem pledge says:

      Iceland have acted properly, private banks who got rewards from risks should also accept the pain when they fail. It is not the responsibility of the taxpayer to underwrite bankers bonuses from their taxes. Banks and bankers might contribute to political parties by that is not in the national or public interest, it is in individual and party interest. Look at USA, Obama curbed his bank changes because of the funding he received from the banks for the mid term elections.

      Vote with your feet to give the Coalition a kicking for already failing to deliver on their promises. How Clegg has the bare faced cheek to write to the Student Union defies all decency- lying fcker.

      Wikie leakes also show the Americans commenting how the UK could not cope with mass immigration instigated by Liebour and it is still has not been stopped by the Coalition, quite the opposite Red Cable wants more immigration. vote sensibly during the local elections in May- ie anything other than Liebour, Tory or LibDem.

      Like

    • 94
      Osama the Nazarene says:

      Readymix Pump you are the original Mr Nasty or 미스터 더러워

      Like

    • 100
      Anonymous says:

      Ireland voted for the the EU and the Euro. Ireland has got the EU and the Euro. Fuck Ireland.

      Like

  2. 2
    Gordon Brown says:

    They are all Terrorists in Iceland

    Like

    • 21
      Wikikosherleaks says:

      Anyone not believing in Global Warming, that thing in NY, with magical falling towers, the man in the cave, wot did it all, and the tooth fairy, is a TERRORIST.

      Like

      • 34
        Osama bin Laden says:

        Magical falling towers?!

        I suppose the planes were incidental? Jesus H, how many videos do I have to make saying “I DID IT!”? God above, why do I bother?

        Like

        • 68
          the next Mr Katona says:

          That’s the problem I always have with the 9/11 conspiracy nutjobs……muslims in the middle-east were dancing in the streets and they were quite pleased their boys did it. They still are.

          It’s a good con if you can make it look like someone else was to blame, but a miracle con if you can get someone to willingly accept responsibility, and keep accepting responsibility, if they didn’t do it !!!

          For it to be a con job would take too many operatives. Someone would have blabbed by now.

          Like

  3. 3
    Ludwig von Mises says:

    Looks like I shall have the last laugh…

    Like

  4. 4
    Charles Flaccidwidger says:

    Was Ireland using McMental as a financial adviser?

    Like

    • 80
      Old dog no tricks says:

      Actually – the whole EU is following Gordons example ! Spend Spend Spend and then spend some more !

      I said all along that letting the banks go was the only way to avoid fiscal meltdown and that Brown – if he had an inkling of common sense would only protect the ‘savings’ (i.e. real existant money) of people with taxpayers money.

      Had that happened there would be quite a mess BUT – solvent banks would have taken on the good repayable debt thus saving viable businesses etc. All junk would have gone to the wall ! IT is the way the market works. Yes a lot of people would have gone under – but (real) life’s like that !

      We would no longer having failed banks dishing out huge bonuses to their directors (and why should we object now when they have literally made their banks squillions of pounds for no risk from the taxpayer – I’d call that successful banking !) We would not have huge (bank bailout) debt to deal with on top of Gordons prolific spending blow and we would be in a much better place to not burden our grandchildrens grandchildren with the results. Still when the ediface comes crashing down – from the EU politicians meddling and doing what Gordon proposed – we will have at least regained our freedom. Which (much to his disgust I would hope) will be Gordons legacy !

      An interesting question to ask is whether without the EU project saving agenda – would the Germans would be quite so keen on dumping all of their money in the sink holes of the PIBIGS economies ? IF the answer is no – then the EU will collapse – if yes then it will take longer (the pilotico’s will not let their iron grip loose easily !) but probably without the Euro – which dooms the union to failure eventually anyway ! IMHO !

      Like

  5. 5
    Gordon Brown says:

    It was a Global Recession that started in Iceland

    Like

  6. 6
    Tooth fairy says:

    Guido must pay Irish taxes, methinks??

    Like

  7. 7
    Chris Myers says:

    Yes sir, I can boogie, I can boogie all night looooooooong

    Like

  8. 8

    Ireland can’t do an Iceland – you need control of your own currency to do that and the silly Paddies went and gave that away a few years ago.

    Like

    • 10
      Tooth fairy says:

      Guido did say they must decouple first.

      Like

      • 26
        Senator Bloodn' Gore, says:

        Guido is simply venting his spleen here:

        1) There is no decoupling mechanism – to simply leave would isolate Ireland for the next two generations at least. Ireland would become a third world country treated by former partners in a manner similar to that experienced by Germany after the first war
        2) It is fatuous to compare Ireland and Iceland; the scale of the two country’s economies are disparate to such an extent that it’s similar to the comparison of the economies of USA and the UK.
        3) The collapse of the Euro may be desirable but the ripple effect of a “tear” rather than an orderly withdrawal would spread to all the smaller EU member countries and their small trading partners which would lead to grave social unrest.

        If you wish to continue to trade with your major trading partners, Guido, it’s always wise not to shaft them…..you may not like what’s happening now but I’m sure that you enjoyed everything that preceded the current situation. Cheesed off that your smart 5 bedroom overlooking the Liffey is now worth about the same sort of money as the give away model cars at your local BP filling station?

        Like

        • 29
          sockpuppet #4 says:

          Even if one really hates the euro, a “collapse” – would mean a couple of years at least of instability, uncertainty, lack of confidence, would be bad news for everyone. apart from people playing the meeerkets.

          Like

        • 32

          What a load of rubbish, Ireland’s biggest export market is Britain, outside the eurozone. There is a decoupling mechanism – it is called taking back your sovereignty.

          Ireland and Iceland are two small countries on the West European fringes with many similarities.

          When the EU is shafting you it is time to defend yourself.

          Like

          • Aesop o'Sardis says:

            Too right GF!

            Like

          • misterned says:

            Agreed.

            As they say, money talks, bullshit walks. The EU countries will still trade with countries that decouple from the Euro.

            The Irish people need to take back THEIR country again!

            Just as we Brits should take back ours!

            Like

          • Old dog no tricks says:

            There is another fun way to decouple too – first to take some piano wire, select a few well lit streets and then go hunting for the traitorous politicians that got you into the mess by lying their ar*es off to get you to accept what they and their mates would benefit from by lying to you.

            I seem to remember that Mussolini was decoupled from the N*zi’s in such a way – and it worked extremely well !

            It would serve also to those who do their own thing as opposed to the bidding of the people they were elected to represent how much fun life can be when the people get angry enough to take the power away ! And the people are so so angry ! Down the pub – in their homes and in the bloggs !

            Like

        • 55
          Major Eyeswater says:

          Harrumph. Vile warmist.
          1) If allowed to choose between a) sovereignty and penury followed by devaluation and recovery or b) upsetting the European federalists a bit I think I’d go with the Icelandic route (you could call it a democratic Thing ;-)

          2) However disparate their economies, the scale and nature of their main problem (stonking bad bank debts) is similar. To contrast their options from this point on is therefore quite valid and highly informative.

          3) Traditionally the way to avert social unrest in a crisis is to take the earliest opportunity to “kick the bums out” at the ballot box, allowing one and all to stag on and carry their own water (“Sinn Fein” as they probabl;y don’t say in Gaelic). The “grave social unrest” you refer to is much more likely when the jailor of your debtor’s prison is another country. That Ireland has compromised her sovereignty by knuckling under to the Euronutters is in my opionion more likely to increase public discontent. The same would go for the rest of the Club Med countries as they go under.

          Although default upsets everybody, when it’s inevitable it is better to get it over and done with as fast as possible. Kicking the can down the road by borrowing 85 yards from your “closest trading partners” and defaulting on that… well, isn’t that worse? Where will history point the finger of blame for the collapse of the Euro? Ireland or Germany?

          Carry on.

          Like

    • 38
      Willsteed says:

      @TRM
      ‘Ireland can’t do an Iceland – you need control of your own currency to do that and the silly Paddies went and gave that away a few years ago.’

      Nope, they joined with the rest on 1 Jan 99, nigh on 12 years ago.

      Like

  9. 9
    Steve Miliband says:

    Their adverts are still crap, using C list celebs to promote frozen food to chavs.

    Like

    • 37
      Dorothy Slopbucket (aged 90) from Peacehaven says:

      I don’t know about their TV adverts (aren’t all adverts targeted at the lowest common denominator?), but their products are actually very good.

      Like

  10. 11
    BEN eFIT CHEAT says:

    Keep up the good work Iceland You are truly on the road to recovery
    i mean the “Two for one deal on fishfingers is fantastic “

    Like

  11. 12
    Postlethwaite says:

    That’s what they did in the last bank crash in 1907

    Your bank, your problem . . .

    Like

  12. 13
    Selohesra says:

    Since all the lefties think it is fine to protest by occupying and damaging property would it also be acceptable for suited office workers to occupy and vandalise the Labour & RMT HQs?

    Like

  13. 14

    The 20 cent per tax euro is to service overall state debt which is much more than just bank bailout debt! It includes the existing state debt, the ban bailout money AND the 50bn we’ll borrow to pay current expenditure over the next few years.

    Like

    • 30
      I Remember You Hoo says:

      Just tell the banks, IMF, EU, no. Ireland are the ones with the gun in all this, despite appearences. Guido is quite correct, use the 4D’s to your advantage, though your existing political class are rather of the same persuation as our spineless imbeciles and will probably cave.

      Like

  14. 15
    Centre Parting says:

    Obama describes Cameron as a ‘lightweight’ – as opposed to a ‘darkweight’?

    Like

    • 19
      Ed Miliband says:

      Did someone mention lightweight?

      Come off it, let’s have a serious debate about the issues that matter!

      Mr Potatohead is the best!

      Like

    • 28
      Maximus says:

      More likely ‘bantamweight’

      Like

    • 44
      Willsteed says:

      re15, Ironic, given that post the US mid-terms, Obama is going to get nothing substantial passed through Congress.

      Dead-duck is what comes to mind…

      Like

    • 69
      SlashnBurn says:

      He never did! Seriously, does anyone believe that someone born and raised in a completely different part of the world with a completely different culture and a completely different political establishment “by accident” uses Gordon Brown’s favourite term of abuse? And just at the time when McRuin was trying to depict Cameron as a “lightweight”? This is “rumour” always had Peter Mandelson’s greasy fingerprints all over.

      P.S. That doesn’t mean that Cameron isn’t a lightweight…

      Like

  15. 20
    The big D says:

    The lure of a well paid EU job will be sufficient to prevent any Irish politician suggesting such an action.The Euro project is too valuable to be stopped by democratic action. Anyone attempting to will be sidelined or bought off.

    Like

  16. 22
    Hello says:

    Good.

    Ireland will tell IMF/ECB et al to GFT.

    Like

  17. 27
  18. 31
    giant gonad says:

    100% right Mr Fawkes. Ireland will be stuck with low growth and depression unless it devalues. This might not suit Frau Merkel, but she can fuck off.

    Like

  19. 33
    giant gonad says:

    Ireland must devalue. Frau Merkel can take a running jump.

    Like

  20. 36
    Maximus says:

    The Landsdómur is a special court in Iceland which was established in 1905 with the mandate to handle cases where members of the Cabinet are suspected of criminal behavior. [1]

    The Landsdómur has 15 members — five supreme court justices, a district court president, a constitutional law professor and eight people chosen by parliament every six years. [2]

    The court will be assembled for the first time to prosecute former Prime Minister Geir Haarde for alleged gross misconduct in the events leading up to the 2008 Icelandic financial crisis. The Althing decided on September 28, 2010 with 33 votes against 30 to charge Haarde. [3]

    http://wapedia.mobi/en/Landsdómur

    Like

  21. 47
    Kim Jong-Il says:

    Fuck Ireland.

    Like

  22. 48
    Seth the pig farmer says:

    1. It would be better for us and the Irish if we just giving the money that we are “lending” to Ireland to our banks and allowed the Irish to default on their loans to UK banks. That would allow a clean line to be drawn under a chunk of their debt, and allow both parties to move on.

    2. Don’t you wish we had kept that gold.

    3. Can anyone explain to me why if we can increase the level of cuts to welfare spending we can’t also maintain the cuts to employment in the state sector. Seems to me a triple whammy – reduced spending on entitlements, savings on payroll & future pensions, making an additional 100k literate & numerate potential employees available to the wealth creating economy.

    4. Time to cut the minimum wage to increase the employment options to women, the young, the ill-educated, minorities and make up the difference with tax credits?

    5. Surely time to reconsider the VAT increase?

    Like

    • 51
      Barry says:

      It may be OK for the Pres of Iceland to say we’re fine, and their actions were correct, to sort out the issues. However, having been there and met many Icelanders, who accepted the methodology, ‘cos it got rid of the gangster bankers, remember that many people lost ALL their savings……

      Another thing, the Icelanders are still livid at Gordon B for using terrorism legislation to protect stupid local authorities (advised by their auditors). There was a t shirt on sale in Iceland which had the slogan “brown is the colour of poo”

      Like

      • 66
        Anonymous says:

        “There was a t shirt on sale in Iceland which had the slogan “brown is the colour of poo”

        Looks like Fawkes missed out on that one. He would have made a killing selling them on this blog.

        Like

    • 84
      Old dog no tricks says:

      The fla is in item 3 – the vast majority of public sector workers were employed in order to maintain quota’s – thus the number of literate and numerically cometant public sector employee’s runs at about 2% ! Of course they will not get chopped because they will be needed to keep the quota’s intact ! So the 2% of able public sector workers are more likely to be cut !

      Like

  23. 49
    Billy t' beast of t' yorkshire moors says:

    Kerry Katona would have made an ideal labour chancellor

    Given lots of cash and then spunked it up the wall before sulking off into oblivion
    Everybody is going to Iceland

    Like

  24. 53
    Billy Bowden is the greatest umpire ever ! says:

    So Guido , Are you saying that we should have let the bad banks go under (Or swallowed up by the good banks) instaed of throwing billions at em ?

    Like

  25. 56
    Batty Hattie Harmanescu says:

    The Irish had it in their power to save us and the rest of Europe from the Lisbon treaty. They chose not to, so I really couldn’t giver a stuff what happens to the Ireland, and no, we should not be bailing them out.

    With luck the Euro will eventually fail and take the EU with it.

    Like

    • 60
      Recently deceased Dorothy Slopbucket (RIP) says:

      Hattie, you’re not so batty.

      Like

    • 87
      Old dog no tricks says:

      What you have to remember is that it is not the Irish peoples fault ! If they had voted no a second time – they would have just been made to vote again and again and again – the EU does not take no for an answer – even if in between they had had to rewrite Lisbon and call it the ‘Gay Paris dance routine’ they would have got it through !

      Eventually it would have been done through 20 different treaties if necessary – all individually sold as ‘tidying up exercises’ ‘inconsequential’ or ‘we’ve got an opt out’ or ‘red line’ or whatever ! The ‘EU’ intends to become a marxist state and will take as long as it needs to get there ! Fortunately – unless they nationalise all the member states – the markets will come to the fore and generate a collapse ! the only way that it could work is through (a desired by the people) full political and fiscal union – which is what Ireland is (being forced into) signing up to ! But as the UK people will never agree – the EU cannot achive its aims ! It was doomed from the moment we joined – which is why they had to sell us a pig in a poke in the first place ! Fact is that the EU would be (half) glad if we withdrew (so long as they could keep a large chunk of our contributions) – they know that they would stand a far better chance of completing their federal ambitions without us !

      Like

  26. 57
    Max says:

    Totally agree Mr F. Instability, unrest etc etc will happen anyway so it may as well happen when going in the right direction. As to when things crack (throughout Europe, including the UK) it’ll be down to how much of a hold the various banks have over the politicians. I cannot think of a bank that is not bust (ok there may be a couple) because of essentially property-related bad debt.

    Try buying property at the correct price from a UK bank. It is impossible, hence no transactions. By not selling, losses are not being crystalised so the banks look solvent according to their balance sheets. But…they are bust.

    Bankers and Socialists, who’d believe it?

    Like

  27. 58
    Johnny says says:

    The European bank bailouts was a plan devised by the European Commission, including the bailouts here in the UK. Brown was just following orders. I wonder… Might the EC or people connected to it happen to have a lot of money on deposit in European banks?

    Like

  28. 59
    Major Eyeswater says:

    Nick Robinson on Pravda last night said the UK was likely to join in a bailout of Portugal. I nearly spilt my port. Didn’t Gideon give his scout’s honour to Carswell et al. in the House on this after the Irish fiasco? Is this just a vile rumour? If true Gideon should immediately be offered Macallan and the mess Webley.

    Like

    • 62
      Johnny says says:

      Without it ever seeing the inside of Parliament, during the coalition negotiations Alistair Darling signed us up to being part of the Euro bailout scheme between then and 2013.

      Like

      • 89
        Old dog no tricks says:

        On Carswells website today it is said (have not dug deeper yet) that Georgie boy was consulted by Darling BEFORE signing up ! So tacit agreement was there – Georgie is as big a traitor and liar as Cameron ! From this point on blaming the Labour party should be seen as a non starter as they are (as said many times before) all in cahoots ! They just shuffle the magicians stacked deck every 4 or 5 years !

        UK democracy – its just an illusion !

        Like

  29. 61
    13eastie says:

    Guіdо,

    “Оrdіnаry реорlе” аrе nоt іnѕulаtеd frоm thе bаnkѕ’ fаіlurеѕ by реrmіttіng thеm tо hарреn. Іt іѕ lаrgеly оrdіnаry реорlе whо, by mаkіng dероѕіtѕ, рrоvіdе thе саріtаl аnd lіquіdіty thаt еnаblе thе bаnkѕ’ оthеr асtіvіtіеѕ.

    Тhе rеаl dесоuрlіng thаt nееdѕ tо tаkе рlасе іѕ thаt оf thе Еxсhеquеr frоm аѕѕеt рrісеѕ. Іf Ѕtаmр Duty wеrе tо bе рhаѕеd оut іn аll fоrmѕ, thе Тrеаѕury wоuld rеly lеѕѕ оn аѕѕеt-рrісе-bubblеѕ tо fund rесklеѕѕ gоvеrnmеnt ѕреndіng, аnd mіght hеnсе bе lеѕѕ іnсlіnеd tо rеgulаtе thе rеtаіl bаnkѕ ѕеnѕіbly іn thе fіrѕt рlасе.

    Наd thіѕ bееn dоnе іn thе UK, wе mіght nоt hаvе hаd: ѕо muсh М&А асtіvіty іn thе ѕесtоr; ѕuісіdаl еxtеnѕіоn оf соnѕumеr сrеdіt; аѕѕеt-рrісе-bubblе; lunаtіс рrорrіеtаry trаdіng; lасk оf ѕесurіty; undеr-саріtаlіѕаtіоn.

    Wіthоut thеѕе іllѕ, wе (аnd Іrеlаnd) соuld hаvе аllоwеd bаnkѕ tо fаіl wіlly-nіlly.

    Еxсерt thеy wоuldn’t hаvе.

    Like

    • 71
      Cable Guy says:

      I think stamp duty has a place in controlling inflation, if you take the swiss model. In that country if you buy a house and sell it within 5 years you pay super stamp duty. I think this is a good way of stopping people speculating the market. Should adopt the same policy here

      Like

      • 88
        Postlethwaite says:

        Stamp duty is a “tax for nothing”
        .
        It is also a brake on people moving jobs to different areas, because they have to pay
        a tax for nothing
        .
        .
        ok it probably pays for many thousands of the unemployed . . .

        Like

  30. 63
    Anonymous says:

    Any price is worth paying to keep the marxist euro dream alive. Like any socialist project it bears no relation to sense or reason. Long may they fuck up.

    Like

  31. 70
    Cable Guy says:

    I think this kind of argument bodes well thinking in the short term, but unlike Iceland our banks will again return to profit, it may take longer. But in the long term the taxpayers share in the banks should be sold at a profit ?

    Like

    • 90
      Old dog no tricks says:

      And the banking debt that the taxpayers are funding though ‘loans’ not shares – what will happen to that ? Does the taxpayer get some sort of super-dividend when the banks are sold off i.e. a dividend for not owning shares in the bank ? Or interest/debt repayment that has to be paid BEFORE the dividend issue ? So who’s going to buy the shares ? The debt across the taxpayer owned banks is too great – unless you are talking debt repayment over hundreds of years to keep the share dividend payout a worthwhile investment ! Or inflating the economy so that the payback will be worthless to the taxpayer ! Gordons solution was wrong – the banks should have gone bust !

      Like

  32. 72
    wolfofwallstreet says:

    Yo dont get it. British banks are exposed to over 100 billion of Irish bonds. In exchange for full repayment on the bonds and 8 billion euro “support” Osborne has eliminated the risk to UK banks. As the general public would be baying for blood at the mention of another bankster bailout, representing this as a soveriegn bailout of our good friends and allies the Irish is great spin.

    Like

  33. 75
    Peter the Painter says:

    How a Irish bailout package works

    It is a slow day in a damp little Irish town.

    The rain is beating down and the streets are deserted. Times are tough, everybody is in debt and everybody lives on credit.

    On this particular day a rich German tourist is driving through the town, stops at the local hotel and lays a €100 note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night.

    The owner gives him some keys and, as soon as the visitor has walked
    upstairs, the hotelier grabs the €100 note and runs next door to pay his
    debt to the butcher.

    The butcher takes the €100 note and runs down the street to repay his debt to the pig farmer.

    The pig farmer takes the €100 note and heads off to pay his bill at the Farmers Co-op.

    The guy at the Farmers’ Co-op takes the €100 note and runs to pay his
    drinks bill at the pub.

    The publican slips the money along to the local prostitute drinking at the
    bar, who has also been facing hard times and has had to offer him
    “services” on credit.

    The hooker then rushes to the hotel and pays off her room bill to the hotel
    owner with the €100 note.

    The hotel proprietor then places the €100 note back on the counter so the
    rich traveller will not suspect anything.

    At that moment the traveller comes down the stairs, picks up the $100 note,
    states that the rooms are not satisfactory, pockets the money and leaves town.

    No one produced anything. No one earned anything. However, the whole
    town is now out of debt and looking to the future with a lot more optimism.

    And that, ladies and gentlemen, is how the bailout package works.

    Like

    • 85
      13eastie says:

      Whаt іf аny оf thеѕе реорlе uѕе thе саѕh tо раy оff а lоаn tо а bаnk, thаt іѕ thrеаtеnіng tо ѕtаrt іnѕоlvеnсy рrосееdіngѕ?

      Тhе bаnk nоw hаѕ thе саѕh ѕо thе Gеrmаn саn rеdееm а bоnd іt іѕѕuеd tо hіm рrеvіоuѕly, whісh hе dоеѕ іmmеdіаtеly.

      Тhе Gеrmаn аѕkѕ thе hоtеlіеr fоr hіѕ mоnеy bасk.

      Тhе hоtеlіеr аѕkѕ hіm tо wаіt whіlе hе рhоnеѕ thе bаnk fоr а lоаn.

      Тhе bаnk іѕѕuеѕ аnоthеr bоnd tо thе Gеrmаn, but bесаuѕе thе Gеrmаn knоwѕ аbоut thе hоtеlіеr, thе yіеld іѕ muсh hіghеr thіѕ tіmе. Не thеn lеаvеѕ wіth hіѕ €100 аnd а nеw bоnd.

      Еvеryоnе іn thе tоwn іѕ ѕtіll іn dеbt аnd mіѕеrаblе.

      Тhе Gеrmаn gоеѕ hоmе аnd роndеrѕ why thе bаnk іn Аthеnѕ іѕ nоt rеturnіng hіѕ саllѕ…

      Like

    • 91
      Old dog no tricks says:

      Almost !!!! Except that the German tourist leaves the hotel WITHOUT handing back the keys (interest) to the room – making it useless to either the Hotel owner who cannot use the room – or the tourist who cannot use the room either !

      The only answer being that the Hotel owner changes the lock !

      Like

  34. 79
    Peter says:

    The Euro is pure poison!

    Like

  35. 81
    EU petty clerk says:

    Sorry Guido, no can do. The labour chap darling quietly signed an agreement which commits the UK to EU bailouts…knowing that the next government would have to pick up the tab! Pass the port would you?

    Like

  36. 86
    Ap Rhys says:

    Haha! Guido’s been taken over by “loonie leftie” Naomi Klein, this is obviously a new chapter from her critique of the so-called “free market” policies The Shock Doctrine.
    Either that or Guido is starting to realise that “free market” policies generally mean paying large corporations massive amounts of taxpayers’ money for little or no return.
    Congrats, that Catholic education wasn’t wasted, confronted by the evidence Guido, you’re beginning to thnk for yourself!
    PS Before you start I hate communism

    Like

  37. 92

    One subject that is not getting enough debate in my view is the fact that whilst Ireland’s banks have to be saved her pensioners can have their money in effect thrown to the wolves. As I wrote today.
    “Thirdly we have the somewhat bizarre situation of Ireland contributing to the bailout from its cash reserve and its National Pension Reserve Fund. This leaves me with the image of Ireland’s future pensioners being forced to contribute whilst her bankers in effect do not.”
    If you do the maths you end up with some 12.5 billion Euros to be contributed by Ireland’s sovereign pension fund…

    http://notyaesmanseconomics.wordpress.com

    Like

  38. 95
    Osama the Nazarene says:

    Wise words indeed Mr F, but falling on deaf ears methinks. I suspect even the PDs, if they existed, would be in favour of the bail out.

    Like

  39. 101
    unablogger says:

    Iceland are reaping the rewards of the free markets’ response to their actions, short term pain and long term gain, good luck to them. Unlike the communist state that the EU has become, countries in the Euro zone have no room to manoeuvre, tough and I want my money back with huge interest please.

    Like

  40. 102
    google says:

    europe is in very bad sheets… First Island, then Greece, then Ireland the next will be Portugal

    Like


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UKIP’s Patrick O’Flynn:

“I think Mail online comments are a telling indication of public opinion.”



Left on Left says:

The lefties are attacking because the panellist is a millionaire and lives in a London home worth upwards of two million. Someone had best tell them he’s called Ed Miliband.


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