pandora's box Posted January 16, 2011 Share Posted January 16, 2011 The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money. link Quote Link to comment Share on other sites More sharing options...
pandora's box Posted January 16, 2011 Author Share Posted January 16, 2011 ...the figures also provide the latest evidence that responsibility for funding Ireland's broken banks is being pushed increasingly back on to Irish taxpayers. The loans are recorded by the Irish Central Bank under the heading "other assets".A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks, not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified. Quote Link to comment Share on other sites More sharing options...
andybee33 Posted January 16, 2011 Share Posted January 16, 2011 Crikey! I can't see this ending well. I work in Ireland a lot and, although the average man over there seems to be handling things pretty stoically, they've borne cut after cut and many people are facing real hardship. There's only so much blood you can squeeze out of a stone! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 16, 2011 Share Posted January 16, 2011 depends what the collateral is if this is news or not. And if this is the case, why did the ECB need to bail them out for...and us for that matter. Quote Link to comment Share on other sites More sharing options...
Alan B'Stard MP Posted January 16, 2011 Share Posted January 16, 2011 ECB doesn't want a loan on its books and another central bank starts to issue credit. Mmmm wonder what that could mean? Quote Link to comment Share on other sites More sharing options...
northwestsmith2 Posted January 16, 2011 Share Posted January 16, 2011 (edited) Their Irish domestic banks*, not branches of UK banks, lent €118 Billion to UK Private residents. They should call it in. *AIB, Anglo Irish Bank, Bank of Ireland, EBS, Irish Life and Permanent, Irish Nationwide Building Society Edited January 16, 2011 by northwestsmith2 Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted January 16, 2011 Share Posted January 16, 2011 What is the code on Bundesbank issued Euro notes again? Much more of this and they may start gettig in short supply. Then what happens do the Bundesbank start printing or do those notes start attracting a premium? Quote Link to comment Share on other sites More sharing options...
jammo Posted January 16, 2011 Share Posted January 16, 2011 Wish I could print my own money. So much more convenient, and I wouldn't have to touch so many of those dirty used notes which probably carry swine flu. I might have to look into it, what a great idea, thanks Ireland! Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 16, 2011 Share Posted January 16, 2011 Toast I tell you toast..... is very nice with lots of butter. Heh oh and the Euro also has remarkably similar charactoristics too. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted January 16, 2011 Share Posted January 16, 2011 The funniest bit is their houses still look expensive. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted January 16, 2011 Share Posted January 16, 2011 Why doesn't Ireland just sell all it's gold reserves? http://en.wikipedia.org/wiki/Gold_reserve Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 16, 2011 Share Posted January 16, 2011 ECB doesn't want a loan on its books and another central bank starts to issue credit. Mmmm wonder what that could mean? The ECB want another central bank to share in the juicy profits that are due? Very nice of them I must say. Or Ireland is getting ready to jump ship and leave the Euro? Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 16, 2011 Share Posted January 16, 2011 51 bn Euros EMERGENCY funding. someone remind me, Ireland is a small economy....what is its GDP? Quote Link to comment Share on other sites More sharing options...
Guest_Bosworth_* Posted January 16, 2011 Share Posted January 16, 2011 51 bn Euros EMERGENCY funding. someone remind me, Ireland is a small economy....what is its GDP? About €150bn. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted January 16, 2011 Share Posted January 16, 2011 51 bn Euros EMERGENCY funding. someone remind me, Ireland is a small economy....what is its GDP? 204.144 Bn USD - so more than 25% of GDP! LINK Quote Link to comment Share on other sites More sharing options...
Pauly_Boy Posted January 16, 2011 Share Posted January 16, 2011 204.144 Bn USD - so more than 25% of GDP! LINK All that funny money and still it's not enough for a deposit on a paddle that they can use to try and navigate themselves out of shitcreek! Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted January 16, 2011 Share Posted January 16, 2011 A spokesman for the ECB said the Irish Central Bank is itself creating the money it is lending to banks, not borrowing cash from the ECB to fund the payments. The ECB spokesman said the Irish Central Bank can create its own funds if it deems it appropriate, as long as the ECB is notified. Wait... have I just slipped into a parallel universe? Is this some sort of early arpil fools joke? Doesn't this defeat the entire point of a single currency and the ECB? Were the rules changed on the quiet without anyone noticing? Greece.... Greece are going to go f***ing apesh!t. They were forced to go begging to the IMF.... when the Greek people find out the Greek central bank is allowed to just print money, they are going to riot and demand tax cuts and benefits rising and massive spending. The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will? It's impossible to overstate the importance of this... this is it... game over. The EU has weeks maybe days left. I this really is true, this is the biggest news story since world war 2 finished, and may even lead to world war 3. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 16, 2011 Share Posted January 16, 2011 Why doesn't Ireland just sell all it's gold reserves? http://en.wikipedia.org/wiki/Gold_reserve Its only got 6 tons, and remember as a conditon of joining the Euro something or other they had to move all their gold to Frankfurt or something. Therefore it is not in their possession to sell. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 16, 2011 Share Posted January 16, 2011 The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will? Panzer divisions crossing into France again? Quote Link to comment Share on other sites More sharing options...
Reck B Posted January 16, 2011 Share Posted January 16, 2011 Wait... have I just slipped into a parallel universe? Is this some sort of early arpil fools joke? Doesn't this defeat the entire point of a single currency and the ECB? Were the rules changed on the quiet without anyone noticing? Greece.... Greece are going to go f***ing apesh!t. They were forced to go begging to the IMF.... when the Greek people find out the Greek central bank is allowed to just print money, they are going to riot and demand tax cuts and benefits rising and massive spending. The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will? It's impossible to overstate the importance of this... this is it... game over. The EU has weeks maybe days left. I this really is true, this is the biggest news story since world war 2 finished, and may even lead to world war 3. I'll pop the kettle on. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted January 16, 2011 Share Posted January 16, 2011 Wait... have I just slipped into a parallel universe? Is this some sort of early arpil fools joke? Doesn't this defeat the entire point of a single currency and the ECB? Were the rules changed on the quiet without anyone noticing? Greece.... Greece are going to go f***ing apesh!t. They were forced to go begging to the IMF.... when the Greek people find out the Greek central bank is allowed to just print money, they are going to riot and demand tax cuts and benefits rising and massive spending. The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will? It's impossible to overstate the importance of this... this is it... game over. The EU has weeks maybe days left. I this really is true, this is the biggest news story since world war 2 finished, and may even lead to world war 3. .... and breathhhhhe Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted January 16, 2011 Share Posted January 16, 2011 Wait... have I just slipped into a parallel universe? Is this some sort of early arpil fools joke? Doesn't this defeat the entire point of a single currency and the ECB? Were the rules changed on the quiet without anyone noticing? Greece.... Greece are going to go f***ing apesh!t. They were forced to go begging to the IMF.... when the Greek people find out the Greek central bank is allowed to just print money, they are going to riot and demand tax cuts and benefits rising and massive spending. The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will? It's impossible to overstate the importance of this... this is it... game over. The EU has weeks maybe days left. I this really is true, this is the biggest news story since world war 2 finished, and may even lead to world war 3. this is EMERGENCY funding. All central banks do this, indeed, it is their function as the last lifeboat on the Titanic...to provide funds against a short-term shortfall. It seems though, this is not short-term...its to cover a flight of savers to other banks. A bank run, if you will. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted January 16, 2011 Share Posted January 16, 2011 (edited) this is EMERGENCY funding.All central banks do this, indeed, it is their function as the last lifeboat on the Titanic...to provide funds against a short-term shortfall. It seems though, this is not short-term...its to cover a flight of savers to other banks. A bank run, if you will. You're right... the ECB is able to create money for short term/emergency use.... but as soon as individual countries do it it's game over. The idea of ireland being able to do this is simply ridiculous. You can't have one currency used by many countries if one country can print as much as they like... because they will just print huge amounts to fund public spending while keeping taxes low so they can undercut and steal business from other countries. It was bad enough the ECB lending money to Ireland which is being used to stop taxes rising, allowing ireland to steal businesses from Germany... but Ireland actually CREATING new euros to do it? As news spreads I'd expect riots across europe, especially in Greece. If Ireland can create euros, why can't greece? Or Italy? Or Portugal or Spain... or even the new countries who join the euro this year? Why would anyone implement austerity when they can print... especially if others are already printing the same currency. In fact, you would be stupid not to print as by not doing so you disadvantage yourself. It's simply impossible to overstate how bad this news is for europe. It's a final roll of the dice. Ireland is already out of money. It doesn't want to raise taxes or cut services. So it's doing the unthinable. It's pushing the big red button that it knows will keep them in clover for a few more weeks, but will then destroy the universe. It's the financial equivilent of a hydrogen bomb. Edited January 16, 2011 by RufflesTheGuineaPig Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 16, 2011 Share Posted January 16, 2011 It's a final roll of the dice. Ireland is already out of money. It doesn't want to raise taxes or cut services. So it's doing the unthinable. It's pushing the big red button that it knows will keep them in clover for a few more weeks, but will then destroy the universe. It's the financial equivilent of a hydrogen bomb. I can't think of any countries that have successfully printed their way our of a similar mess, can anyone name one country where this tactic has worked? If they are printing is it because the ECB wants the Irish central bank to hold the debt as its easier for Ireland to leave the Euro? I really can't see how this can work as a sustainable strategy, surely it's going to implode? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted January 16, 2011 Share Posted January 16, 2011 I'll pop the kettle on. Quote Link to comment Share on other sites More sharing options...
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