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But waht about the loans to the irish government?
Loans actually extended to the Irish sovereign amount to less than 20 % of the total outstanding Irish sovereign debt. The remaining 80+ % are loans originally extended to Irish banks, which the Irish sovereign, in a fit of momentary insanity, decided to guarantee. That guarantee should never have happened, and simply telling all the hedge funds and foreign banks to go take a hike is the simplest way to reverse it at this point.
Friends come and go. Enemies accumulate.
Take 2010. Of the famous 30% deficit, 20% or so are guarantees etc. to the banks. But 10% is the ordinary deficit. And these "ordinary deficits" alone have caused a significant part of the debt.
The ECB should be printing money on demand to support that, not demanding that the member states fund their countercyclical policy in the money markets.
1) I can call it odious that the ECB isn't buying those bonds at face value, and is forcing Ireland to jump through ridiculous hoops and fund in the private market.
2) Just because a third of the debt isn't odious doesn't mean the other two thirds also aren't odious.
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