Skip to main content

Behind The Sovereign Debt Crisis

by | Monday, 15th November 2010
The yields on Irish government debt (specifically 10 year bonds) rose to over 9% on Thursday last week on the rumours that Ireland was needing to go cap in hand to the EU for a further bailout. The Irish government denied this in a fairly carefully worded statement. The result is that yields have fallen back to just over 8% today, although it is generally accepted that if yields head back over 9% again, Ireland will be forced to run out the begging bowl.

Yields on government bonds rise in proportion to the risk investors perceive themselves to be taking when they buy them. If yields on Irish bonds rise above 9% again, it is an indication that investors believe that the Irish government are likely to default on repaying the debt when the bonds mature.

UK Not In The Eurozone? Doesn't Matter

The Irish sovereign debt issue demonstrates quite nicely the incestuous circular nature of the monetary financial system.

While the Irish taxpayer has been sold down the river through the bailout of the Irish banks, UK banks are sitting on billions of euros of Irish government bonds and toxic mortgages.

As a result, for example, in parallel with Irish bond yields rising, the Royal Bank of Scotland, which has £53 billion exposure to Irish debt, saw its share price fall by 3%.

You could be forgiven for wondering why we should care about RBS's share price. But of course, as part of our bailout of the banks, we bought up 84% of RBS. So the British taxpayer has just lost another £9 billion, on top of our share to RBS's Irish debt exposure - the British taxpayer underwrites £40 billion of that.

Run On The Bank Of Ireland

The Irish Times reported last week that corporate customers of the Bank of Ireland have withdrawn up to €10 billion during August and September. They report that the bank has said that this situation has stabilised, although "outflows of ratings-sensitive customer deposits in our [Bank of Ireland's] capital markets business" continue, and that the bank is still completely reliant on the European Central Bank's emergency unlimited liquidity window to keep it afloat.

This amounts to a run on the bank, which has been kept more or less secret because, of course, there is no obvious queue outside the door. Perhaps there should be, because we have heard rumours that in the USA, banks are already starting to put limits on the amount of money customers can withdraw at a time.

Irish Youth Leaving In Droves

As a result of the Irish situation, young adults are leaving in droves. According to Tallaght's students union, over 1200 students are leaving Ireland every month.

If this continues, Ireland risks getting itself into as bad a position as Poland, with the majority of its working population looking for work in foreign countries, leaving children and pensioners to fend for themselves in a depopulated and unproductive wasteland.

It's The Banks!

Behind it all is Rothschild's Inter Alpha bankrupt banking cartel. It's Rothschild policy that it should be bankrupt. It's Rothschild policy that national governments should bail out his bankrupt cartel, and it's Rothschild policy that the taxpayer should be crushed into submission under the weight of bailout upon bailout.

The aim is rage. A population asset stripped and enraged; ready to strike out at anything that moves at the wrong time. Violence on the streets, civil contingencies, Europol, dictatorship.

It's the banks that are bankrupt. The sovereign debt crisis is a created fiction. Created as a result of bailout forced on national populations by bought and paid for agents of Rothschild who just happen to be politicians. Traitors like David Cameron and George Osborne.

We owe commercial banks nothing. Their debt is fraudulent. But for the treason, we could deal with the problem overnight. In any case, we will be dealing with it.

Help the UK Column by becoming a member: