The ongoing financial farce in Ireland shows with crystal clarity why Britain was "persuaded" by the, so-called, "financial markets", pundits and all sorts of experts to cut the public spending. If British kept on spending as much as they used to it would not have enough money to rescue Ireland. The UK would have been on the financial edge itself. According to the Bank of International Settlements in Basel the UK banks' exposure to the Irish debt is 222.4 billion euros (page 16 of the report). If Ireland is bailed out, in fact, it will be British financial insitutions that will be bailed out too. Without having made the spending cuts a few months ago Britain would not simply have money to do so. Hence the UK banks would have ended up in a very deep trouble (if not bankruptcy). To summarise the whole saga (which shows the, so-called, "financial markets" modus operandi):
- first Irish banks were run out of money, thanks to a pyramid scheme that was operated, and ended up in a deep financial trouble; Ireland was "persuaded" to make deep cuts to rescue them; i.e. banks' debt was propagated as the country's debt;
- after everything was squeezed out of Ireland itself its rating was downgraded in order to generate even greater liabilities of Ireland towards the, so-called, "financial markets";
- then countries like the UK, Germany were persuaded by the, so-called, "financial markets" to make cuts in order to create a budgetary room to pay more to the, so-called' "financial markets";
- now Ireland has been "attacked" by the, so-called, "financial markets"; Ireland is simply a conduit to squeeze other countries (like Britain, Germany) that are tied to the Irish debt and make them keep paying to the, so-called, "financial markets".
- after Ireland will be "rescued" the, so-called, "financial markets" will continue operating according to this modus operandi; there are more countries in a queue waiting to be "rescued"; the, so-called, "financial markets" will decide the timing.
Is this a conspiracy? No, it is not. This is how, so-called, "financial markets" work. This what the City and Wall Street are really all about. (The rest is simply a pretty transparent smokescreen creating a pretence of legitimate business. Like some Greek restaurants operating, in fact, as illegal casinos.)
The author of this blog described this mechanism well…
