Can’t Find Their Pot of Gold
November 23rd, 2010According to Financial Times, Greece won’t the the last to receive some financial assistance from the International Monetary Fund (IMF). Ireland is seeking a bail-out, but this time they can’t handle it themselves.
Can You Spare Some Change Lad?
As the first country in Europe to perform a bailout in 2008, Ireland has begun descending through the slippery slope of artificial financing an economy that can no longer be sustained at its current consumption rate. This crisis within Ireland is sparking worry for the Euro and participating nations.
As the IMF starts in its quest to assist, some critics are wondering if Ireland will be cooperating by cutting spending as well as raising taxes in order to balance the budget. The IMF is suppose to be used in a crutch-like situation assisting a country through a dry spell until they coach themselves back to a healthy economic status:
“Originally set up to administer the postwar system of fixed exchange rates, the IMF was constructed to tide over countries suffering balance of payments problems, generally by easing liquidity, while the governments returned themselves to solvency by cutting spending or raising taxes.”
Let’s see if that is the strategy Ireland uses…along with other Euro-zone countries in the coming economic realities they will face.