The Irish bank bailout; getting rid of the Irish creditplug. Taxpayers buying bad assets at inflated prices. May the bubble not burst.

* Irish bank stocks are rallying this morning as Irish taxpayers buy their bad debts above market value. No wonder the stocks are rallying. Will Ireland become the first stagflation country? I believe so.

Well, that certainly flushed the Irish creditplug out of the monetary system. Back to happy days and lending again. The circulation of the monetary base is now likely to accelerate sharply from a frozen state. Irish inflation should increase on the back of it with growth sorely lagging behind. This could become the first stagflation experiment. Tensions to rise within the Eurozone as other countries are tempted to follow suit. Path of least resistance, a path frought with dangers.

The bubble is still getting pumped up. Lets just hope is doesnt burst.

As usual, good luck,







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