not see the parallels between what W did 4/2 U.S....
and what French & German banks are doing now to Ireland.
Similar problem, similar solution...
how similar the result?
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Dec 08 07:08 PM
JGBHimself
Very good Irish summary, Dr. Bill.
However, your excellent analysis of how Ireland, and how the "banks in the core (France and Germany) have large holdings of bonds from the periphery (Ireland, Portugal, Spain, Italy and Greece)", relates to U.S., you left out the Qcard for U.S. - aka, China.
As you know, Europe is now a larger trading partner for China than U.S. So, when the EURO tanked, and China was justifiably afraid of loosing that export market, WE asked them to make their exports to U.S & Europe much more expensive. When the EURO strengthened, saving China's exports to them; and the dollar tanked, with the China dollar pegged to U.S., saving their exports to U.S., WE once again asked China to make their exports to both Europe and U.S. more expensive. And, you wonder why they just stared at U.S.?
"The Question" remains, IF it might have been an economic mistake for the Irish govt to "guarantee" French & German banks RE loans to them - not unlike W's nationalization of FMae&FMac in order to guarantee China's bond purchases in F&F, & to U.S. - are the Govts & banks of Germany & France making a similar mistake by loaning - aka, guaranteeing - funds to Ireland? Will that save Ireland, or BK it sooner, or later.
Or, are they simply doing what they have to do, for everyone - Northern Europe, da Pigs, China and U.S. - to try to survive?
We think that you just said Yes.
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Ireland's Economic Crisis: A Brief Summary
http://seekingalpha.com/article/240822-ireland-s-economic-crisis-a-brief-summary?source=email_the_macro_view
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