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Emergency lending from the ECB to banks in Ireland fell in December, the first decline since January 2010, but only because the Irish Central Bank stepped up its help to banks. 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. ECB lending to banks in Ireland fell from €136.4bn in November to €132bn at the end of December, according to the figures released by the Irish Central Bank yesterday. At the same time, the bank increased its emergency lending by €6.4bn, bringing the total it is owed to €51bn. – UK Independent
Dominant Social Theme: The heck with a single currency. Oh, wait … let everyone print it.
Free-Market Analysis: Was this the week the euro gave up the ghost and the EU threw in the proverbial towel? Analyzing the Anglosphere’s dominant social themes is not an easy avocation and one looks for documentable breakthroughs. We have been fortunate to find several during the timeframe of this young publication but are always looking for more. Irish printing of euros seems to fit our criterion of a demonstrably significant event. (Information that makes you sit up straight and go “Wha?”)
The one that stands out the most for us previously (as we have mentioned before) was the Congressional appearance of Federal Reserve Inspector General Elizabeth Coleman. It was perhaps the single worst appearance of any official in the history of such appearances and left no doubt that the Fed had not a clue about how to handle the fallout from its various monetary insanities. See our article on that episode here:
http://www.thedailybell.com/384/Federal-Reserve-cannot-account-for-9-trillion.html
Now comes Ireland. In news reports that have thus far not attracted much attention, the Irish Central Bank has been printing euros out of thin air to prop up its ailing banks. The whole of Europe will pay for this action, as the result will be increased euro-zone price inflation. We can only imagine the reactions of Germans if this continues – though apparently the Irish action is legal from the EU’s standpoint so long as the ECB is “informed” in advance and approves. As is often the case, we doubted our reaction to the news, so we went trolling the ‘Net to see if anyone shared our instinctive reaction that this was overwhelmingly bad news for the euro. Here’s one comment we found:
Wait… have I just slipped into a parallel universe? Is this some sort of early April’s 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 [Irish] 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. ([email protected])
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