Ireland Goes into the "Loving Arms" of the IMF for a Bail Out

Ireland, is getting a bail out from the IMF as well as the European Central Bank.

The bailout would be in the tens of billions of euros, he said, adding that the final figure was subject to negotiations. Analysts and politicians have suggested that the size of the package may well approach €80 billion, or $109 billion.

Perhaps €15 billion would be set aside in a fund to support the country’s banks, which have been hemorrhaging deposits. An additional €60 billion or so would be allocated to Ireland itself so as to give it the flexibility of staying out of the bond markets.

Negotiations for the terms are not finalized but the New York Times implies the deal will have Greek like austerity measures. Bend over Ireland.

Mr. Cowen has said Ireland is already putting an adequate budget-cutting plan in place, but given the size of the bailout being discussed, it would be surprising if E.U. and I.M.F. officials did not demand more cuts, accompanied by tax increases.

“There will be a lot of pain for the taxpayer and a lot of people will lose their jobs,” said Michael Noonan, the chief economic spokesman for Fine Gael, the main opposition party.

Gets better, Ireland, while saving the banks is talking about cutting their minimum wage. Right o, they borrow in austere terms to fill their banks with (cough) firepower yet claim the problem isn't their beyond belief low 12.5% corporate tax rate, nope, just squeeze workers.

There was a run on the banks, implied and of course the bail out is all about the banks:

E.C.B. data shows that €130 billion in outside funding has been funneled to Irish banks, with €95 billion being directed to the large locally based banks. These banks are now wholly dependent on Europe for their survival, running up loan-to-deposit ratios that now exceed 160 percent, above and beyond prudential banking guidelines.

On Nov. 12, the Bank of Ireland reported that its outside borrowings had increased by €12 billion, or 11 percent of its assets. And on Nov. 19, Allied Irish Bank reported that its additional borrowings were €27 billion, or 16 percent of its balance sheet.

Barclays Capital estimates that €28 billion in extra funding is going to Anglo Irish, the troubled real estate lender that has chalked up more than €30 billion in failed loans.

It appears Ireland's Prime Minster is trying to postpone an election, claiming it would be irresponsible to allow the people to boot him out of office at this critical time.

Simon Johnson claims one of the benefactors of this latest crisis where one must squeeze workers is China, as a more snide type of commentary, simply because they will be the only nation left to bail out the IMF.

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Offshore outsourcing to a countries whose first letter is "I"


While the companies are not threatening to leave at this stage, the statement – signed by senior Irish executives from each of the four companies mentioned – does directly point out that although Ireland's tax rate may be low in European terms, it is not when compared with locations such as Singapore, India and China.

see: Will Google (And MSFT, And HP, And BAC) Be The Biggest Loser From The Irish Bailout?

Ireland has an extremely generous corporate tax code. Greedy multi-nationals can't resist squeezing more profits and so move jobs from U.S. to Ireland, leaving even more Americans unemployed. Yes, this is offshore outsourcing - not to India - but to Ireland.

But Ireland runs a deficit of 32% of its GDP. i.e., while it cut corporate taxes, it didn't make commensurate cuts in spending (sounds familiar, doesn't it?).

In return for bailouts from governments (taxpayers) around the world, Ireland promises to cut its deficits. But the wealthy multi-nationals corporations won't bear the burden. No, the average worker, who can least afford it, will.

Multi-national corporations such as Microsoft, Intel, HP, and Bank of America are once again threatening to offshore jobs to India unless they get their way. But this time they are threatening Ireland, not the U.S.

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HP threatens Ireland

Ireland must raise taxes and cut spending yet multi-national corporations will be exempt!

Ireland to Cut Spending 20%, Raise Taxes as Talks Climax

Hewlett-Packard is threatening Ireland. It appears HP could care less about Ireland ... it's all about their bottom line. Looks like the average worker loses again to the greedy multi-national corporation for it will be they who bear the pain of increased taxes and reduced spending.

Remember HP's threat to Ireland if you are thinking about purchasing a computer.

"Finance Minister Brian Lenihan will maintain Ireland’s 12.5 percent corporate tax rate, criticized by some European governments such as Austria. Hewlett-Packard Co., the world’s largest computer maker, said this week it may reconsider its investment in Ireland should the country raise its company tax rate as part of an aid accord."

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