Ireland is Breaking

by Ryan on November 10, 2010

in Economy,International Relations,Politics

Ireland’s been having to deal with a serious banking crisis which won’t go away.  However, things just got worse for Ireland:  this week Ireland’s debt hit a level that has spooked investors into predicting that Ireland will be the next euro zone nation to require a bailout.

Two years of government bailouts have merely broken the once economically energetic Ireland.  When investors mention your country and Greece in the same sentence, it’s not pretty!  Irish austerity would include proposed government cuts comparable to cutting the entire US Defense Department!  Ireland waited too long to cut, implemented bad fiscal policy in the meantime, and now they’re in a real crisis.

Here in America, we decided to push our QE2 stimulus instead of making tough cuts now, prompting some to ask if QE2 is even constitutional without oversight.  Paul Ryan and crew want a complete Fed audit — I hope they get it!  Others believe that the QE2 signals America finally admitting that we are illiquid, admitting that we cannot pay our bills.  Uh-oh.

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