Sunday, 25 September 2011

Wallets out, everybody

Little time for blogging this weekend, so my comments on this will be brief.
British taxpayers risk being caught up in a £1.75trillion deal aimed at saving the euro by allowing Greece to default on its massive debts.
[...]
The eurozone deal, being brokered by the G20 group of nations, would seek to "ring fence" the crisis around Greece, Portugal and Ireland - preventing it from spreading to major EU economies such as Italy and Spain.
It would involve the bailing out those European banks - mostly French - most at risk from their massive lendings to tottering economies.
Greece, crucially, would be able to default on at least some of its more than £300billion debts but remain inside the eurozone. The Greek government's private creditors would bear most of the increased costs.
At this stage, a new bail-out programme would be devised for Greece - with cash coming at least in part from the International Monetary Fund, in which Britain holds a 4.5 per cent stake.
And so...
This could mean British taxpayers paying out more than the £1billion they are already slated to have to contribute under the terms of the first Greek bailout fund.
I suspect 'could' in this context means 'will'. How can Britain avoid it when the IMF is involved? And so I'll make my usual comment in this kind of situation:

It's not your fucking money!

And add only that actually allowing a default isn't a bad thought but this idea is still, to use Douglas Carswell's phrase, bailing water into a sinking boat. The idea that a bail out involves adding more of the problem is just gold standard professional window licking.