Ireland seizes $7 billion from its Pension Fund to boost employment

June 13, 2011 by · Leave a Comment
Filed under: Global News 

The situation looks dire in Ireland.  They have raided their pension reserve fund to use as a stimulus fund.  It is in my opinion that they should not of bailed out the massive real estate debts that were built up during the bubble.  Yes, there would of been major dishevel for a short amount of time but then they would not have the commitments they have now that is forcing austerity and slowing the recovery.  For some reason we are fixed on always keeping prices higher and not seeing the benefits that lower prices that (equates to higher value) brings when you have savers with capital that will sniff out value.

Business Insider – The government will  use the last €5 billion in the National Pensions Reserve Fund (NPRF) to help create employment although it will need approval from the International Monetary Fund (IMF) and Europe before doing so.

The Sunday Times reports today that the money will be used by the government to create as many as 80,000 jobs in Ireland. The paper cites government sources in reporting that the use of the money would be seen as more viable then the proposed sale of semi-state assets in the current weak market.

One source says that the view of the troika of IMF, the European Union and the European Central Bank is that if you have money it should be spent rather than drawing on outside funding or money from selling off assets at the wrong-time.

Source

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