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Loans to Ireland rich ground for rebellion

Michael Crick | 16:58 UK time, Monday, 22 November 2010

George Osborne told the Commons today that Britain's bilateral loan to help the Irish will require primary legislation.

That has obvious potential for a Conservative, Eurosceptic, back bench rebellion. And presumably the legislation will need to go through within the next few days.


  • Comment number 1.

    Loans to Ireland rich ground for rebellion. I have to wonder how much richer this might be if Britons understood the option that was neglected, ignored.
    What option would that be?
    The Chinese commitment to buy any and all bonds from STUPID PIIGS in order to assist these countries to get back on sound financial footing.
    This was no airy-fairy commitment. China is already buzily engaged.
    China is waging an economics-focused diplomacy of reassurance, especially to the EU, to counter the malicious activity against China coming out of the United States of America.
    President Hu Jintao is using China's economic strength to convince the entire global community that its power will raise all boats with which China does business.
    What was President Barack Obama doing in Asia except trying to promote the American administration's "anti-China containment policy".
    Meanwhile, Chinese diplomats are citing a new foreign-policy generated by President Hu. In light of the country's US $2.5 TRILLION foreign-exchange reserves, Beijing has an unprecedentedly amount of money to engage in economic diplomacy. Since October, China has been all over Asia and Europe.
    Most noteworthy have been the gains in Europe.
    France: Sarkozy and Hu signed trade and investment deals worth $22.8 billion. Sarkozy spoke glowingly of the PRC's global contributions.
    Sarkozy: "To resolve the big problems in the world we need China. China should not be seen as a risk but an opportunity."
    UK: The British signed deals worth a mere $1.6 billion, but in addition, selected British financial institutions were given access to the China market ahead of their American competitors.
    Portugal: Signed deals and contracts in infrastructure, renewable energy and tourism worth $1 billion. Portugal bespeaks "excellent political ties" and vowed to give "priority" to bolstering a Portuguese-Chinese partnership.
    Spain: China bought $600 million worth of government debt issued by Spain.
    Greece: Premier Wen Jiabao pledged to purchase substantial amounts of the financially beleaguered country's bonds in addition to setting up a $5 billion fund to help Greek shipping companies buy made-in-China vessels.
    Indonesia: Wu pledged to invest $6.6 billion in much-needed infrastructure projects in the relatively poor Asian nation.
    It's little wonder that Obama made his key trip too India because, given China's border problems with India, Beijing would be hard put to prevent Obama from consolidating a strategic partnership with New Delhi.
    The Chinese "economic-focused diplomacy" seems to be working. Obama didn't get very far in attempting to get the G-20 to do his dirty-work in reevaluating the yuan.
    China's quiet contributions to global economic recovery are quite outstanding.
    Ireland: China promised to buy any and all bonds issued by Ireland when Ireland went to market (after June, 2011). So, why was Ireland forced to take a bail-out...unless there is a deliberate attack against China gaining too much of a foot-hold in Europe, and that pressure would be keenly supported by the Americans.
    So, if there is unrest or rebellion, the first question to ask is: Why was the Chinese offer pushed under the US/UK carpet???

  • Comment number 2.


    Dare I suggest that the real reason why it was deemed to be in the UK's national interest is that Sinn fein could become predominant in an Irish economic collapse with the possible resumption of what they euphemistically used to call the 'struggle' aka carnage/butchery....

    He had it sussed out ahead of everyone else!

  • Comment number 3.

    Cash and the little Englanders are getting frisky.....woopppeeeee, fun to come...

  • Comment number 4.

    Follow the money:

    UK banks lend to irish banks & property speculators

    Irish property market goes pear shaped

    Irish banks go bust

    Irish government bails them out

    Irish government goes bust

    UK bails out Irish government

    Irish government bails out Irish banks

    Irish banks pay back UK banks

    UK banks pocket the money

    UK banks pay huge bonuses to senior managers

    Senior managers are ex Tory MPs, relatives, friends and supporters of Cameron


    Tories won't rebel because if they do they and their mates don't get the money and HMG will have to directly bail out UK banks AGAIN, which is much more difficult to sell!

    So any Tory who does vote against this is almost certainly several sandwiches short of a picnic, but that's nothing we didn't already know..

    The Tories ARE the Banking Party - they flit into and out of the City, hold directorships, their families are all "something in the City" - voting against the Irish bail out is not in their interests.

  • Comment number 5.

    "The Tories ARE the Banking Party - they flit into and out of the City, hold directorships, their families are all "something in the City" - voting against the Irish bail out is not in their interests."

    Oh my! What a Citizen Smith-class warrior-esque knee jerk generalization.

    The truth is that the Euro from the initial blatant fudging of the convergence criteria onwards was always an artificial construct, an idealistic fantasy, the stuff of dreams. Now the banking crisis has exposed it it to be thus and you can see the reaction to the Irish loans today, namely that the Euro has not shown any sign of a positive reaction.

    Forgive me but I have a three legged black cat who I maintain, despite the fact that she spends all day moving from one choice sleeping location to another, knows more about economics than the people responsible for coming up with the idea of the Euro. So I asked her this question. If you have a load of different countries with the same currency but fixed at the same value for all of them, but at the same time all of these countries have widely different levels of taxation including corporation tax, as well as huge differences in public expenditure, including retirement benefits and ages, health and social provision, as well as different levels of productivity, investment and employment, do you think it is a recipe for disaster?

    She didn't bat an eyelid, demonstrating, as far as I am concerned that to her it was such a no-brainer that any response would have risked dignifying such a stupid question!

  • Comment number 6.

    PS The subtle flick of a paw reminded me that my question to her had made no mention of the absurd hourly wage differentials that have existed over the Eurozone and of course the UK too where over a million East-Europeans have come to compete for private sector jobs. When the farce of European enlargement occurred there was in the East a population that would work for a week for what those in the West were expecting to work for an hour to earn, and yet the value of the common currency of all the member states was the same for all.

    The Euro will go down in history as one of the dumbest ideas we humans ever came up with. Don't shoot the messenger, that's what the flicking claw was obviously (indulge me) meant to convey. Total lunacy and now we will all pay the price!


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