Ireland faces impossible debt load, but so does Germany

“A depressed and deeply indebted economy with just 1.8 million people at work cannot underwrite private banking liabilities of €200bn (135% of GDP),” says the Observer.

http://www.guardian.co.uk/commentisfree/2011/feb/27/editrial-ireland-eu-election-debt

But the people of Ireland are not the only ones being asked to shoulder an impossibly high  fractional reserve banking debt.

Ever more liabilities and interest payments are being piled on Germany’s workforce: there is the 220 euros billion for the European Stability fund; the 338 billion  euros the Bundesbank has lent to other central banks; billions more lent to private banks;   a soaring national debt of well 1.8 trillion euros etc etc.

Germany is set to suffer the same fate of insolvency as Greece and Ireland – only there will be no EU/IMF loan big enough to give the appearance of liqudity. The ECB will have to buy up the German bonds.

The ECB is already buying up gigantic amounts of souvereign bonds of the indebted eurozone governments because countries can no longer begin to service their national debts caused by the banking crisis. This is also the same  method Germany used to finance the first and scond world war as former Central Banker Helmut Schlesinger noted. He said that the ECB’s version of the Federal Reserve’s Quantitive Easng will  lead to hypernflation or a currency reform – and the IMF is indeed preparing a new currency to suit the bankers.

http://www.mmnews.de/index.php/politik/7321-ezb-bondkauf-parallele-zu-kriegszeiten

Imminent hyperinlation or currency collapse was no doubt part of the reason why German Bundesbank president Axel Weber decided to rule himself out as the ECB chief as originally planned.

Far from even attemoting to pay the saveage loan that the EU and IMF have imposed on Ireland in a backroom deal, the new government should take steps to exit the country from the eurozone and set up the punt before the whole houseof cards collapses based on such unsound money collapses.

It should pass emergency legislation to introduce hairucts to bondholders, repeal te EU/IMF budget,  remove the EU and IMF team that has taken over the finance ministry and modify the monetary rules to let the governmet borrow money directly from its national bank and prepare to re introduce the punt.