Irish government collapses

In a fitting tribute to a disgraceful performance by Irish Prime Minister Brian Cowen in which Cowen crammed losses of Irish banks down the throats of taxpayers, his government has at long last collapsed. Six cabinet members (40%) resigned representing justice, health, trade and enterprise, defense and transport. Earlier in the week his foreign minister resigned making the total six.

The new government doubtless will not cravenly capitulate to the bondholders as Cowen’s did. By saying bondholders would be paid in full, they impoverished Ireland for years while enriching the monied class that played a major role in creating Ireland’s financial crisis in the first place.

Ireland should do what Iceland has done. When the crisis hit, Iceland defaulted on their bond debt, used that money to rebuild their economy, let their banks fail then nationalized them, and arrested banksters. The result is that Iceland is now recovering.

Ireland needs to do the same. Default on their bond debt, then tell bondholders they will get a serious haircut if they want repayment at all rather then forcing their citizens to pay for the crimes and greed of the banks.

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