Who owes Ireland's massive debt mountain?

[Uptowngirl]

I was just wondered who would pay off Ireland's massive debt mountain.

 

Ireland's debt stands at around £250 billion. A massive sum for a country of 4.5 million people. It represents 120% of GDP.

 

More alarming is that around 8% of the population have emigrated in the last 4 years. These are the most able and qualified people and leaves an increasingly aging population behind as GDP falls.

 

Who will be left to pay off Ireland's debt, or will they simply default and expect their creditors to pick up the pieces in the same way Greece is doing?

[monkey69]

No the debt paying scheme has been written into Irish law, so there is no way of them defaulting on the debt.

Not unless they have a revolution which i doubt...

as far as i know its the big global companies and governments that are owed the money, so there is very little chance of them turning around and saying forget it we can manage!!!(Ha if only)

[geared]

Err don't we have alot?

 

When Ireland got bailed out wasn't it us that chipped in a significant quantity?

[mjw47]

Err don't we have alot?

 

When Ireland got bailed out wasn't it us that chipped in a significant quantity?

 

Ireland did not get 'bailed out'. Do you understand the difference between a bailout & a loan?

 

Britain's credit rating is higher than Ireland's following the credit agency's 'deliberations'.

 

This means Britain can borrow money at a better rate & then loan it to Ireland at a profit. Nothing wrong with that, it's the way the world works, but it is not a 'bailout'.

 

Seeing as Ireland's debt includes an enormous amount loaned to them by British banks in the 'boom times' it made financial sense to ensure they didn't go bankrupt thereby bringing the already shakey British banks down with them.

 

Personally I have difficulty seeing the difference between the western financial economy & a giant ponzi scheme.

 

---------- Post added 29-05-2013 at 22:35 ----------

 

As to who owes Ireland's debt, thanks to their previous Government the people of Ireland do.

Private debt accrued by a relatively small percentage of speculators has been turned into public debt, meaning it will be paid back by people who would not have benefited had the original gamble paid off.

That's the world we live in today & it's not just the Irish who are paying the price. This country owes unbelievable amounts of money & the population are, & will , be paying for it in reduced standards of living & reduced public services.

[geared]

Ireland did not get 'bailed out'. Do you understand the difference between a bailout & a loan?

 

Ireland received 85 billion, €67.5 billion from the EU/IMF.

 

The money needed to prop-up the banking sector and central government because they couldn't borrow money on the financial markets any longer.

 

The EU/IMF bailed the Irish out of trouble before their economy collapsed and took other larger countries with them, seems like a bailout to me :confused:

[mjw47]

Ireland received 85 billion, €67.5 billion from the EU/IMF.

 

The money needed to prop-up the banking sector and central government because they couldn't borrow money on the financial markets any longer.

 

The EU/IMF bailed the Irish out of trouble before their economy collapsed and took other larger countries with them, seems like a bailout to me :confused:

 

Please explain. How is money which is loaned on a clear understanding that it will be paid back, with interest, a bailout? It was in fact, a business opportunity. Britain is gaining by the arrangement, &, as I said, there is no problem with that.

 

I don't know how to provide links but please Google 'who owes what to whom'. Where you will find that Ireland owes 104.5 Billion Euros to Britain whilst surprisingly, Britain owes 113.5 Billion Euros to Ireland.

 

As I stated above I cannot see the difference between all these debt arrangements & a Ponzi scheme.

It seems to me the whole thing is a house of cards waiting for the inevitable collapse.

 

I sincerely hope I am wrong here. It would set my mind at rest if someone could reassure me that I have completely got the wrong end of the stick & it will all turn out right in the end.

[geared]

Please explain. How is money which is loaned on a clear understanding that it will be paid back, with interest, a bailout? It was in fact, a business opportunity.(

 

All the 'bailouts' to the various EU countries have been loans, all the countries are expected to pay them back at some point - it's not just free money being shovelled at them.

 

As I stated above I cannot see the difference between all these debt arrangements & a Ponzi scheme.

It seems to me the whole thing is a house of cards waiting for the inevitable collapse.

 

It's not a ponzi scheme, because that is a fraudulent investment machine which offers members higher returns on investment than it can actually return.

 

It is a house of cards, and thats why the bailouts are needed.

 

If Ireland collapsed then it'd take British banks with it, then Britain would collapse, then France, Germany, the EU, the USA etc etc etc.

[Uptowngirl]

All the 'bailouts' to the various EU countries have been loans, all the countries are expected to pay them back at some point - it's not just free money being shovelled at them.

 

 

 

It's not a ponzi scheme, because that is a fraudulent investment machine which offers members higher returns on investment than it can actually return.

 

It is a house of cards, and thats why the bailouts are needed.

 

If Ireland collapsed then it'd take British banks with it, then Britain would collapse, then France, Germany, the EU, the USA etc etc etc.

 

My point entirely. It is a worry that Irish government debt has built up to around £50,000 for every man woman and child in the country. Increasing numbers of the most able people see no future for themselves paying this money back all their lives and are sidestepping that responsibility by emigrating. This leaves an even larger debt burden to be repaid by and reduced number of less able people and will eventually fail.

Those picking up the debt will want increased premium for the increased risk and the debt repayment will start to spiral out of control in the same way it did in Greece. It is more worrying that Spain & Italy both seem to be heading in the same direction.

These countries are propped up with borrowed money from other nations and international banks. As a debt goes into default it will cause a domino effect as the next weakest institution crumbles under the increased strain.

[geared]

Increasing numbers of the most able people see no future for themselves paying this money back all their lives and are sidestepping that responsibility by emigrating.

 

Is everyone responsible, fresh school leavers, fresh university graduates?

Infact is anyone under like 28 or so actually responsible for that debt?

 

I can see why alot of younger people have left, I hear many are going to Australia.

[Manlinose]

Is everyone responsible, fresh school leavers, fresh university graduates?

Infact is anyone under like 28 or so actually responsible for that debt?

 

 

it isn't a personal liability, but everyone will be contributing to the repayment by way of taxes