Default setting

There has been a fair bit of reportage recently about the “Gorilla in the room”.

Here in Ireland our gorilla is an event that can only be 18 months away for this state.

Sovereign Default.

Just like Alistair Johnston’s troubling primate it is better for the Irish to acknowledge the existence of the large presence in the country’s finances than to deny that it is there.

Countries shouldn’t go bankrupt, but sometimes they do.

If they are well run then they really shouldn’t run out of money, but this state has been spectacularly badly run.

Like when the UK had to go begging to the IMF for a loan of £3billion in 1976 it is humiliating for the country involved.

The Republic of Ireland will almost certainly default on its loan repayments within  the next 18 months.

The interest rate is too high and the principal, that mount we owe is massive.

The Irish taxpayer is paying for the gambling losses of the high rollers on the international Bond Market.

Anyone I have asked, people in a position to know; have told me that this is unprecedented.

These digital riverboat gamblers can’t believe their luck that their bad bets are being turned into our bad debts.

The Irish taxpayer has “agreed” (actually no one asked us) to stump up for €126 billion for bond holder bets gone bad.

This is the equivalent of €100,000 per household in this Republic.

Burdened with the crazy open ended bank guarantee of the last government the new government, like a breath of fresh air has, done  exactly the  same thing…

No one in any of the major parties in the 31st Dail seems to countenance the prospect of Sovereign Default.

Like the HMRC case for Rangers there is a large gorilla in  the room marked “ROI” and the political class in Ireland are trying very very hard to ignore it.

Big mistake.