David McWilliams: “it’s survival” at stake

From David McWilliams – Bit of something is better than all of nothing for ECB:

The way things are going, by the end of next year, the interest payment on our total debts — just the interest payments — might well be 85pc of the 2010 income tax take. Income tax in 2010 was €14.125bn and with all the bank debt we are taking on, the interest payments by the end of 2012 will be €12bn per annum.

Our welfare state will collapse under the pressure of these debt repayments and before that happens there will be massive capital flight out of the country.

Now this should focus your mind over your cornflakes as to what is the big issue in the next 48 hours. It’s not the economy, stupid as Bill Clinton said; it’s survival, stupid…

Whatever happens, it will become clear by Saturday night that the only important initiative will be how to renegotiate our massive debts…

We have a simple choice, either we hive off the remaining bank debt — some €22bn of unguaranteed debt — and force these creditors to take a debt for equity swap in the major banks, or we are toast

Read more.

This entry was posted in Accountability, Bank Run, Bankers' Bailout, Budget, Debt Default/Restructuring, ECB/IMF, Economy, Elections, Euro / Sovereign Money, Ideology, ireland, Leo Varadkar versus the World, Solutions and tagged , . Bookmark the permalink.

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