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Ireland Slams Imf Rumours As Tension Looms Over Budget

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http://uk.reuters.com/article/idUKTRE68G2KY20100917

Ireland's finance ministry and the International Monetary Fund sought to calm markets on Friday after a newspaper report on the possibility of an IMF bailout sent investors running for cover.

The cost of insuring Irish sovereign debt against default hit a record high and the Irish/German spread reached a euro lifetime peak after the Irish Independent newspaper said Ireland was "perilously close" to calling in the IMF and the EU.

The IMF told Reuters it did not foresee that its financial assistance would be needed for Ireland and praised Dublin's efforts at propping up its banking system.

Ireland's Department of Finance slammed the Irish Independent article.

"There is absolutely no truth to a rumour concerning external assistance. It is based on a local misinterpretation of a research report," a spokesman said in a statement.

The newspaper used a report from Barclays Capital as the basis for the article. Barclays said Ireland's liquidity position was comfortable but if unexpected banking losses emerged or economic conditions deteriorated outside help may be needed.

"The report is a lot more measured than what has been reflected in the newspaper," said Geraldine Concagh, a senior economist in Allied Irish Banks. "The market is very nervous at the moment."

A combination of costly bank bailouts, anaemic growth and the worst budget deficit in the EU have stoked fears of a full-blown debt crisis and Finance Minister Brian Lenihan is under pressure to ramp up efforts to get the finances in order.

Earlier this week, Lenihan said a 3 billion euros fiscal adjustment target for the 2011 budget was a minimum but his junior coalition Green Party colleagues want that to be the maximum, setting them on a potential collision course.

"We hope that it will be kept to 3 billion and we will be doing our very best (to keep it at 3 billion)," Mary White, the deputy leader of the Green Party, told national broadcaster RTE.

The government has a wafer-thin majority in parliament and already faces a tough task selling more austerity measures to an angry electorate.

Excellent, must be like the football Chairman giving his reassurance to the manager about his position.

Contained?

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http://www.independent.ie/business/irish/ireland-has-no-difficulty-funding-itself-lenihan-2342382.html

Finance Minister Brian Lenihan said the Government isn’t facing difficulty raising funds and that the increase in the country’s sovereign-bond yields this week is "normal" before a debt auction.

Asked about a Barclays Capital report yesterday that Ireland may need external aid at some point if conditions worsen, Lenihan told reporters that “what it said was that the Government was taking the right steps at the right time.”

The Finance Ministry said in an emailed statement that there is “no truth in a rumour” that the Government may ask for aid and that it is based on a “local misinterpretation of a research report.”

The premium investors charge to hold Irish 10-year debt over the German equivalent, Europe’s benchmark, widened to a record today.

Economists at Barclays in London said in the report that while Ireland has a “comfortable near-term liquidity position,” it may need to seek external financial assistance at some point.

Lenihan said the Barclay’s report “pointed out that the Government has no difficulty in funding itself, but it did, correctly in my view, signal that we must be extremely careful in how we proceed.”

Record spread

The yield spread between Irish and German 10-year bonds widened to 385 basis points from 356 basis points yesterday.

The spread has risen 67 basis points since Standard & Poor’s downgraded Ireland’s credit rating to AA- on August 24 on concern about the cost of supporting the nation’s banks.

Credit-default swaps on government debt rose 11 basis points to 401.5, according to data provider CMA, close to the intra-day record of 402.5 basis points set September 8.

I'm glad it's all normal.

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http://www.independent.ie/national-news/government-perilously-close-to-calling-in-imf-report-warns-2341197.html

TAOISEACH Brian Cowen last night insisted he would fight on -- but his economic woes deepened as a major new report warned the country was perilously close to calling in outside help from the EU or the IMF.

After a disastrous three days, Mr Cowen offered little comfort to disgruntled Fianna Fail backbenchers as he failed to outline what changes he would make to his leadership, communications and lifestyle as a result of his 'Morning Ireland' interview debacle.

But the persistent grumbling over his leadership was overshadowed last night by two new economic blows.

The cost of borrowing for the country moved higher again on international bond markets, after falling back following last week's government decision to split Anglo Irish Bank.

And a report from Barclays, one of Europe's largest banks, said Ireland may yet need financial help from the IMF or the EU if conditions got any worse.

But a spokesman for Finance Minister Brian Lenihan said last night: "The Government's strategy for dealing with the economic and financial challenges has been commended by the EU Commission, the European Central Bank and many other international experts.

"This strategy is at an advanced stage and is being implemented in an extremely open and transparent manner."

Barclays said: "In the coming months the Government may need to seek outside help."

While Ireland has raised most of the money it needs for this year, the cost of Anglo and the scale of the deficit meant any further financial shocks could push the country over the edge, the bank warned.

It said that there was little room for "further unexpected financial sector losses" and that Ireland was running out of economic room.

I'm quite sure there won't be any more unexpected losses....

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I would pay money to watch Will Hutton explain it when it goes pop.

When it does he will be on every news program for the next 10 years explaining how it was inevitable and he was the only person who saw it coming.

I have a lampost reserved for Will Hutton, next to one for Mervyn King, Kirsty and Phil etc

In fact all the lamposts in my vicinity are now fully booked

:blink:

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Once one currency goes, the others will quickly follow.

What about the Reichsmark and the Rouble

The currencies of the last 2 attempts at a European superstate

When they fell did the pound and the Dollar collapse?

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Guest spp

Once one currency goes, the others will quickly follow.

Those of us with our savings NOT in currency sleep well at night!

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And yes - the Euro is doomed.

Go figure, if you will forgive the US idiom.

Can't see how the fall of the Euro would hit the Dollar for instance.

And if Germany left the Euro - the DM would be one of the strongest currencies in the world.

As discussed in previous threads all Euros issued by the Bundesbank are identifiable by their serial numbers and already many Germans will not accept Euros that do not have this serial number letter apparently.

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Those of us with our savings NOT in currency sleep well at night!

I find that sleeping well at night has little to do with my currency holdings, or lack thereof.

However, my inner 'it's different this time' voice tells me that gold isn't the be all and end all.

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Can't see how the fall of the Euro would hit the Dollar for instance.

And if Germany left the Euro - the DM would be one of the strongest currencies in the world.

As discussed in previous threads all Euros issued by the Bundesbank are identifiable by their serial numbers and already many Germans will not accept Euros that do not have this serial number letter apparently.

Globalisation has happened faster than currency development can keep up. Does that make sense?

If you believe, as I do, that our financial system is a house of cards, then you will know that the end is in sight.

Edited by pandora's box

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Globalisation has happened faster than currency development can keep up. Does that make sense?

If you believe, as I do, that our financial system is a house of cards, then you will know that the end is in sight.

Yes but the end has been in sight ever since the beginning

:blink:

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Globalisation has happened faster than currency development can keep up. Does that make sense?

If you believe, as I do, that our financial system is a house of cards, then you will know that the end is in sight.

Seeing as I'm drunk - and reasonably immune to ridicule even when sober, I'll venture further...

When everything falls apart, I reckon we have the wherewithal to have a new, possibly worldwide, digital system operational before society completely breaks down.

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I find that sleeping well at night has little to do with my currency holdings, or lack thereof.

However, my inner 'it's different this time' voice tells me that gold isn't the be all and end all.

Same here, I also prefer Silver! :lol:

Only joking, I get what you're saying.

Globalisation has happened faster than currency development can keep up. Does that make sense?

If you believe, as I do, that our financial system is a house of cards, then you will know that the end is in sight.

Yes, we'll be taken to the point where we'll have 'no choice' put to accept the new currency.

The question is...where is that point? :unsure:

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Seeing as I'm drunk - and reasonably immune to ridicule even when sober, I'll venture further...

When everything falls apart, I reckon we have the wherewithal to have a new, possibly worldwide, digital system operational before society completely breaks down.

And if the Euro doesn't work how exactly is a Global currency going to work?

I think there is a flaw in your drunken logic - but perhaps that's because I'm sober

:P

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Same here, I also prefer Silver! :lol:

Only joking, I get what you're saying.

Yes, we'll be taken to the point where we'll have 'no choice' put to accept the new currency.

The question is...where is that point? :unsure:

It has to be close: this morning, my shoeshine boy warned me about hyperinflation.

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And if the Euro doesn't work how exactly is a Global currency going to work?

I think there is a flaw in your drunken logic - but perhaps that's because I'm sober

:P

There's no logic, only gut instinct - it has served me well thus far.

A global currency would be an unplanned, yet unavoidable, experiment.

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There's no logic, only gut instinct - it has served me well thus far.

A global currency would be an unplanned, yet unavoidable, experiment.

So it will just sort of spontaneously come into existence then?

I can't wait to see this!

:blink:

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You won't have to wait too long.

Have you noticed that nobody is predicting beyond 2012?

Perhaps it's the Olympic factor.

Can you imagine the value of Gold and Silver in 2012! They'll need a whole new QE program just to pay for the medals.

Edit: You learn something everyday...1st and 2nd places are actually made of Silver! :D

2.2 The medals shall be at least 60mm in diameter and 3mm thick. The

medals for first and second places shall be of silver of at least

925-1000 grade; the medal for first place shall be gilded with at

least 6g of pure gold.?

Edited by spp

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Can you imagine the value of Gold and Silver in 2012! They'll need a whole new QE program just to pay for the medals.

Edit: You learn something everyday...1st and 2nd places are actually made of Silver! :D

My whole belief system has been shaken (again)!

You'll be telling me that the US gold reserves are gilded tungsten next.

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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