Rumour Control ie the bailout/nonbailout of the Irish republic

[gaelic cowboy]

Europe has had a long standing conflict with Ireland's ill-displined taxation scheme. One Greece is enough. Both countries receive massive EU funding, yet both refuse to collect taxes internally, because of corrupt politicians. Now on top of the massive subsidies both need enormous bailouts too. Enough of all that. Europe is not a through for corrupt countries. If it were up to me, Ireland must implement stern German fiscal discipline if it wants to receive a bailout:

A best you will get 2 or 3 % hardly a major victory for people intent on destroying our corporate tax rate. High tax wont work here we ruined the country in the 1980s with it over 60% tax rate an interest rate of 20% on loans it was a terrible time and no one is going to accept going back to that high tax world it wont work.

Interestingly the tax rate is low but companies have switched to other countries like Poland or even further afield seems like tax is not the only reason to site a factory in a country.

If tax was the only criteria then there would not be a single factory in France and everything in the world would be made in China.

[Louis VI the Fat]

companies have switched to other countries like Poland or even further afield seems like tax is not the only reason to site a factory in a country.

Taxes are not the only criterium indeed.

Microsoft is perfectly environmentally friendly and without any strenous labour whatsoever. Therefore MS chooses to be based in the tax haven of Ireland.
Other companies can gain a competitive advantage by producing enviromentally unfriendly, therefore they settle in the EU country with the least environmental protection. Yet other companies require dangerous, unhealthy work. They settle in the EU country with the lowest social standards.

In this manner, Europe being a common market, companies can go shopping for the country willing to bend over backwards most for their particular requests. We are turning ourselves into India. Little nine year old girls picking batteries for twentyfive cents with disastrous environmental damage.

There is nothing clever, or 'competitive' about mature democracies in a common market undercutting each other. It is silly, unsustainable, and not at all conducive to creating either a healthy and wealthy society nor a thriving business environment.



'Race to the Bottom' - http://en.wikipedia.org/wiki/Race_to_the_bottom

[gaelic cowboy]

So if Microsoft only care about tax why would they pay French corporate tax levels in Ireland if they wont even pay it in France when India is available by modem. There was no computer industry here in Ireland before the rate was lowered and it's obvious to anyone they will leave not just Ireland but the EU and then no one has a job and you never get any bailout money back ever.

[gaelic cowboy]

There is nothing clever, or 'competitive' about mature democracies in a common market undercutting each other. It is silly, unsustainable, and not at all conducive to creating either a healthy and wealthy society nor a thriving business environment.



'Race to the Bottom' - http://en.wikipedia.org/wiki/Race_to_the_bottom

There is even less cleverness is trying to buck the inevitable the only way were going to afford anything in the future in any European country is if pretty much the majority of the social protections are removed.

Basically we will have to decide if we want people working or unemployed.

I choose work over the dole anyday.

[Louis VI the Fat]

/Anyway, after Greece and Ireland, who's next for the banksters?

The routine is established. Cry high risk, sell bonds at enormously inflated interest rates to account for this risk, next cry panic, get somebody to guarantee the bonds for you. And voilà, high yield bonds, perfectly secured.


Portugal? Not in any particular dire straits, but always a weak economy, an easy prey.
Belgium? A strong economy, but with some debt issues. Most importantly, politically volatile. A determined attack on Belgium will mean the Belgian governments attack one another, instead of tackling the problem. An easy prey.
Spain? The big elephant in the room. A property bubble of near Irish proportion, but on a vastly larger scale. Spain may be too big too fail, and too big too bail out. It will be a great game of bluff between the haute finance crooks and Europe.

[gaelic cowboy]

The game is up for the Euro the masters of the universe see weakness and there moving in the Core will try to defend the weaker areas to defend themselves and therefore sicken the euro internally.

Large scale euro area default mechanism sometime in 2012 I expect and euro 2.0 later on to be a smaller currency PIIGS to be let go after they have defaulted as one.