Ireland Has a Debt Problem
Ireland is in debt trouble. But how did they get into trouble? It is worth remembering that Ireland's government was a model of fiscal probity prior to the economic meltdown. It had run large budget surpluses for the five years prior to the onset of the crisis. Ireland's problem was certainly not out-of-control government spending, it was a reckless banking system that fueled an enormous housing bubble.
Now Ireland is being forced to severely lower the standard of living just so the bankers who swindled the country off of a cliff could be bailed out. The people of Ireland are now servants to the IMF and the bankers who were bailed out with tax payer money.
The problem is not reckless spending. The problem is the interest based banking and fractional reserve banking system. When people borrow, banks create money, they do not lend existing money:
http://www.tradingstocks.net/html/banks_create_money.html
Then banks demand interest for this newly created money. What happens when entire population goes on a borrowing spree? Our money supply becomes what we borrow from the banks. Let us call the money supply X. But banks want us to pay back X+I. Hello?
If money supply is X, X+I does not exist. Thus it cannot be earned and paid back. It will only be created with more borrowing. This is the ponzi scheme banks are running and when it goes bust, they are asking the governments to borrow (individuals are not borrowing anymore) so that money supply is inflated again. It will never end. They are putting the entire population into debt for money that they create out of thin air. Wake up people!
The fix is debt free monetary system and 100% fractional reserve banking. But make no mistake, any government who wants to switch will face a war.
