Let’s rescue Ireland — not the banks

EAMONN GILMORE of Labour is quite right.

This bailout is a sellout of our country.

It is not a simple loan.

It is a “rape of the Irish people” according to Gonzalo Lira, global economic expert.

In a recent interview Lira says Ireland is cursed with terrible political decisions which guaranteed huge bank debt, far too big for the country to carry.

What did the banks do with the bailout money?

Awarded themselves huge bonuses, a practice that continues to go on. Why is Ireland in so much trouble, all of a sudden?

Thank Germany’s Angela Merkel. Three weeks ago she talked about senior bond holders taking a haircut.

The entire bond market panicked and refused to lend to Ireland at affordable rates.

What was Merkel talking about? Senior bond holders who hold Ireland’s debt are Germany and the UK.

“Taking a haircut” means they don’t want to lose a penny. Olli Rehn also says “no haircuts for senior bondholders”.

What’s so bad about the 85 billion euro bailout? First, it’s at a high interest rate, average 5.8%, a repayment of 5 billion euro a year on interest rate alone, 20 % of tax revenue. Second, €35 billion is earmarked for the banks. Money down a black hole. But, wait a minute, Olli Rehn say it’s self-financing, what does he mean? Ireland must find €17.5 billion from its pension funds and reserves for bailout. Ireland has one major asset, its pension fund, and that’s going down a black hole too. Keiser and Stacey Herbert, a political analyst, say Germany will gain in two ways. The cheap euro will increase their export markets while their competition is crippled with debt. Why are they pushing the bailout through, when Ireland is fully funded until summer 2011? Good question. What’s the rush? My father always told me “Follow the Money”.

Lira advises “Default on the debt and restructure the Irish banks. Start off with a clean slate.

Take the hit now” instead of mortgaging the future of your children, grandchildren and great grandchildren.

” Why can we not have an election and time to weigh our options, when we are funded until next summer and who are we rescuing — Ireland or the banks?

Mary Lawton

Lismore

Co Waterford