I see in the Irish Times today that the Central Bank‘s level of emergency liquidity provided to Irish banks last month, was €53.7 billion While the bank does not disclose the exact figure for the amount of emergency liquidity it provides, the vast bulk of the category of “other assets” refers to emergency liquidity funds. While at the same time the ECB is still supporting the Irish banks to the tune of €102.3 billion. So If the EU is slowly withdrawing its support for Irish banks and the Irish Central Banks is taking up the slack I have a question (1) Where did the Irish central bank get this €53.7 billion from? Have they discovered a hidden vault full of Euros somewhere in the Central bank vaults or are they printing this money. If they are doing so, it must be with the approval of the EU. With the national debt now standing at € 101,441,549,888 billion and we are expecting to have a budget defecate at the end of the year of 20,000,000,000 on top of that ,let’s just do a top up here €53.7 +€102.3 +€ 101.4 +€ 20.00 = €277,400,000,000:Billion Now let’s say that the banks will not need any more money and NAMA is not going to lose its shirt and we will somehow balance the budget next year (somehow through divine intervention) at the current market interest rates of 5.6% ,the interest alone will cost us 15,534,000,000,Billion a year. Now with an income of 35,000,000,000 billion in total revenues I would say “Houston we have a problem”! The current government are just not facing up to reality. Our current government expenditure is running at 54,000,000,000 and after paying the interest on existing loans we will have a budget defecate of approximately 38.5 billion. Now how is that not going to end up with us having to default???
- German and French banks call the shots (thepressnet.com)
- Figures to show reliance of our banks on central bank funding (namawinelake.wordpress.com)
- Letters: Lucrezia Reichlin (and others) on Target2 (olafstorbeck.com)
- ECB reportedly plans new Irish liquidity program (marketwatch.com)