Here is an excerpt from Bob Chapman's International Forecaster. He predicts Ireland will default and leave the Euro.
Like other members of the Euro zone, Ireland discovered they could borrow cheaply under one interest rate fits all. This policy, which we predicted 14 years ago, would be disastrous, was disastrous for Ireland, Greece, Portugal, Spain and Italy, and Belgium. Needless to say, the leverage provided by cheap money brought on speculation, particularly in real estate, that brought on today’s problems. Yes, speculation by individuals was a problem, but as in other countries, the problems really lie with the banks, which are really responsible for these tragedies. They should have never made the loans in the first place. Stupidly, the Irish government bailed out the banks just like Greece did. They should have defaulted and allowed the banks to fail. The banks were more than complacent. Just as we see now in the US the banks have at least temporarily been bailed out and depositors guaranteed that their savings are safe. There are also the stimulus programs everyone else has tried as well, that we have seen ultimately don’t work. That is because they are geared to bail out the financial sector and not the economy.
Ireland’s budget will be followed by equally harsh budgets guided by the IMF, which will lead to decades of poverty, as bad as the 800 year reign of Britain over the Emerald Isle. PM Brian Cowen and Finance Minister Brian Lenihan sold out the Irish people to British bankers. The vultures are circling the Republic to prepare for years of future enslavement. Many have called it economic treason.
Allied Irish Bank and Anglo Irish Bank caused all the problems and now the Irish people have to bail them out. A then secret meeting was held at which AG Paul Gallagher sat in as adviser to the government and Dermot Gleeson, AIB Chairman and former AG representing the banks. Both are Illuminists and members of the Bilderberg Group. These two and the PM and FM sold out Ireland to save the banks owned and controlled by the British. They have put the Irish people on the hook for $600 billion. In addition, government bought $70 billion in toxic bonds containing real estate from these banks. These banks are owned by British, French, German banks that are controlled by the Black Nobility and among them the Rothschilds and Queen Beatrix of Holland, an ardent Bilderberg. Her father, Prince Bernard, was a former Colonel in Hitler’s SS.
The only thing left for Ireland to do is to default and leave the euro returning to the Irish punt. They should also leave the EU. They should also end fractional reserve banking, which would allow government to issue debt free, interest free money with gold backing. They should kick Royal Dutch Shell out of the Irish offshore gas fields and much more. This in part was what we told the Greeks to do.
We see a rocky year in Europe that could end in bankruptcies. The efforts to bailout Greece and Ireland and now Portugal and Spain, will increase debt throughout Europe and lead to all nations having problems. The deal struck with Ireland to cover bank insolvency will only increase the debt in the long run and not solve the problem. There is no effort of debt restructuring because the banks refuse to take losses. This attitude and policy is carried forward in all governments via fellow Bilderberg connections. The system has to be changed and purged, but they won’t hear of that. Again, we remind everyone it was the banks that were and are responsible for the condition that the Western world is in today and now they want the public to bail them out. The banks are an extension of the Fed in the US and the Fed was the moving party. They lowered interest rates eventually to zero and it was they who increased money and credit by 17% to 18% for an extended period of time. The Fed created the debt bubble and all the damage you see is a result of that. They are now using tactics, which they know will not work, but they do not know what else to do. It is all about buying time and covering up what they have done. As a result not only did banks over leverage, but so did corporations and individuals, not to mention speculators. Now that bank leverage is down from 70 to 1 to 40 to 1, when 9 to 1 is normal. They are getting a high enough return from the Fed that they have cut lending by 25% or more to small and medium sized businesses. Such antics can only impede recovery. We have been told since last June that lending would increase. By the Fed’s own admission it has increased by a very small amount. Thus, our conclusion is that the Fed is deliberately restricting lending in order to keep banks away from risky loans.
These Fed policies and those of the ECB are designed to extend problems rather than solve them, which tells us there is no solution. Look at what has been done in Greece. No solution, just patchwork and austerity in order to delay the problems. Ireland’s bailout is a carbon copy. Such programs can only bring on default, which we expect to occur later this year. In March or April the Irish election result could turn everything upside down. That could cause a run on other sick economies. This grand design for nations to be interconnected could eventually cause all of them to collapse like dominoes. If the US, the UK and Europe are in trouble the entire world is in trouble.
QE1 and QE2, as well as TARP and other programs were only designed to bail out the financial sector in Europe as well as the US. As we predicted last May there would be QE2 and then QE3. The aggregate spending $2.5 trillion each time, as we saw in QE1. In QE2 the pork laden extension of the Bush tax cuts supplied the $868 billion to assist the fed in keeping the economy and the financial sector afloat. After expenses the Fed returns its profits back to the Treasury. That then isn’t a major problem. What is the problem is that the owners of the Fed control all aspects of financial and economic life. They do not get inside information; they create it. What these banks and brokerage houses do is make mega-money because they really control the system. That is what the Fed is all about – control. Can you imagine trading departments at major brokerage firms and banks for months never have a losing day trading? We were professional traders for 25 years – that is simply impossible unless it involves illegal activity. The owners of the Fed have a license to steal. They created the credit crisis and the taxpayer now is subsidizing them so they can make even more wealth. All this happens because people do not understand fractional banking and the true role of the Fed, which is to loot America.