Monday, November 22, 2010

Digging Eire out of the financial mire and digging the UK into it more!

So Ireland has finally admitted that it's in a financial crisis.
So again. not only is RBS in the mire to the tune of about STG 50bn
but the UK MUST help find STG7bn more to the EU.
This of course is to the taxpayer and another taxation issue.
What they don't mention of course is the interest as well.
Based on Ireland saying they want a 4 year loan this will cost STG 1.550 bn in interest alone.
I doubt that we will get the interest from Ireland but it will cost this to cover the loan by the UK in Gilts.

This will of course multiply when the other countries want the funding i.e. Spain, Portugal etc

So let me get this straight!
UK is in financial problems, as well as France, Germany and Holland.
But they are expected to fund those countries that are already net takers from the EU.

So just by using common sense, you can appreciate that this cannot continue.
What will happen is that UK, Germany, France and Holland will fund this and then they are in deep trouble and there is no one to bail them out. However, the likes of Greece and Ireland will be in better shape 'cos they have taken their money out of EU

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