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swissy_fit

This 80Bn Euros Or So That The Irish Printed.

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I too would like an explanation of exactly what they did.

I would also like the FSA to explain why they are guaranteeing deposits in the Allied Irish bank, a corrupt and crooked and completely bust and emptied out after a run bank, that is quite possibly the worst place you could ever put your money including in the fire.

Come on FSA, why are you guaranteeing this?

And come on Ireland, how did you get away with printing the money?

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Here go.

http://ftalphaville.ft.com/blog/2011/01/18/461881/the-mechanics-of-irish-euro-printing/

http://ftalphaville.ft.com/blog/2011/01/24/466731/buiter-on-europes-secret-liquidity-operations/

Basically exactly what Merv did. The Irish Central Bank electronically created money and bought a load of crap assets off the Irish banks with it. The rules of the EuroZone seem to allow this but will not allow the central bank to print money and just give it to the govt. But seeing as the Govt owns all the banks in Ireland the difference may be moot.

The second article implies the Irish have printed E49billion and GDP is 174billion so 28% of GDP. Merv printed 200bill on a GDP of 1350bill so 14% of GDP.

Its a right good Craic being the boss of the Irish CB.

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I assume that all the PIIGS will join in if it's true.

So why isn't the Euro falling like a stone then?

Don't worry a large reputable bank (like Goldman Sachs) might be keeping an eye on the process to make sure everything is done properly.

As long as they printed the notes with serial numbers that start "X" everything will be OK.

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Here go.

http://ftalphaville.ft.com/blog/2011/01/18/461881/the-mechanics-of-irish-euro-printing/

http://ftalphaville.ft.com/blog/2011/01/24/466731/buiter-on-europes-secret-liquidity-operations/

Basically exactly what Merv did. The Irish Central Bank electronically created money and bought a load of crap assets off the Irish banks with it. The rules of the EuroZone seem to allow this but will not allow the central bank to print money and just give it to the govt. But seeing as the Govt owns all the banks in Ireland the difference may be moot.

The second article implies the Irish have printed E49billion and GDP is 174billion so 28% of GDP. Merv printed 200bill on a GDP of 1350bill so 14% of GDP.

Its a right good Craic being the boss of the Irish CB.

Interesting read. So they printed some new money, and the bad banks gave them some worthless assets as collateral. All will be well (perhaps) if the banks repay, but I doubt that they will. I can't see how this is any different in reality, from just counterfeitng yourself 50 billion.

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Interesting read. So they printed some new money, and the bad banks gave them some worthless assets as collateral. All will be well (perhaps) if the banks repay, but I doubt that they will. I can't see how this is any different in reality, from just counterfeitng yourself 50 billion.

Surely you mean all will be well if the people who the banks lent the money to over said worthless assets repay the money back all will be well?

Obviously if the process will be reversed perhaps they are waiting until the loans are viewed as worthless and the debt wiped, which is now of course on the central banks books, so the money that never existed is wiped with bad debt that now no longer exists on the bad banks books, who now have good money.

Everyone's a winner.

Although as we are running a debt based monetary system the only way to repay debt is to issue new debt. I think there could a flaw in the long term logic of this.

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Its a right good Craic being the boss of the Irish CB.

:lol:

The goings on inside the banks could make a good documentary series. Along the lines of the FlyLo documentary about low cost airlines on BBC1 now. Mind you they say all publicity is good publicity so maybe not.

Edited by billybong

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  • 276 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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