Europe Is Done: Ireland Cut to “Junk” Status
posted at 4:40 pm on July 12, 2011 by Michael van der Galien
OK, this is the equivalent of a European economic Armageddon. First Greece came along, then, a few days ago, Italy. And now Ireland: Moody’s downgrades Ireland to “junk” status.
So, when can we officially roll up the European Union?
Quote from the article:
Credit ratings agency Moody’s has cut Ireland’s bonds to junk status and warned of further downgrades as the euro zone economy struggles to pull out of a financial crisis. Moody’s said it had reduced Ireland’s government debt ratings by one notch, to Ba1 from Baa3, saying there was a ‘growing possibility’ that the country would need more bail-out aid in late 2013, when the current EU/IMF programme is due to end.”
This is absolutely insane. We’re nearing a cliff… and instead of using the break to stop this ridiculously expensive car, we speed up. We can’t afford to continue this insane behavior much longer, the weaker European states can’t be bailed out time and again.
The political elite have to make a decision (and I kindly ask my fellow citizens to force them into making the right one): either the EU now has to become more powerful than most of them ever dreamed of, or it’s time to end it, at least partially (by pushing out the weak countries, for starters).
As an aside, I don’t believe the first option is truly possible (although some of them may certainly try). The EU is set to implode.
This post first appeared at Right Across The Atlantic.