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THE HEAD OF the National Treasury Management Agency has sounded a positive note on Ireland’s potential to make a “sustainable” re-entry to the markets.
John Corrigan, speaking at a Leinster Society of Chartered Accountants event in Dublin, said that the country had taken positive steps towards re-entry in the coming months. This re-entry would be on a phased basis, he said. Some of the steps already taken to achieve this include:
The next step, said Corrigan, would be to issue inflation-linked bonds.
He said:
The average interest rate of just under 6 per cent on the recent sales of long-term bonds and amortising bonds is higher than we would expect to pay on an ongoing basis as we return to the market; but our primary objective was to tackle the “funding cliff” presented by some €12 billion of bonds maturing in January 2014. Reducing that to €2.4 billion has removed a major obstacle to full market re-entry and should, in tandem with continued progress on other fronts, help us achieve lower yields.
The chief executive did, however, warn that “wider euro uncertainties” remain a risk to Ireland’s move towards a full return to the markets. The announcement this morning that Germany’s Constitutional Court – its highest-level court – had approved the European Stability Mechanism treaty is a positive event in this area.
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For as long as we don’t have control of our currencys value and hang our economic performance solely on exports instead of growing our domestic economy, we will only ever know ‘uncertainty’.
The sad reality of the system is werejammin that any export performance is devoured by our debts owed due to bonds, bailouts and guarantee schemes.
The countries citizens, politicians, civil servants (and economists from what I hear them advise), are completely ignorant of the rules of the money game. We are being cleaned out at the poker table.
Back to Basics once again. If you think going back to the markets is a good thing, contact your local psychiatrist immediately. Going back to the markets is selling bonds – literally increasing our bondage – to bankers. It is getting into even more debt and paying back bankers in chunks of our countries real physical assets – infrastructure, water systems, airports, oil and gas etc.
The public demand their free “entitlements”, politicians will not say no. The borrowing continues. Our debt spirals.
There’s nothing good about piling up borrowing, getting deeper in debt. The whole monetary system is a racket, and at this stage none of the worlds public debt can ever be paid back.
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