by John Galt
August 25, 2013 14:30 ET
There is this ongoing myth that if a government sprays enough bull crap, the flowers that grow from the fertilizer will spring eternal and cover the rotting, disgusting smell still permeating the air. The United States led the way with the “tell the stupid citizens the economy is better” theory of economic manipulation and propaganda yet in reality, the bills to eat, own a vehicle, and enjoy the one luxury of a flushing toilet or electricity supersedes paying homage and tribute to the banksters for renting, er, buying property from the state.
Sadly, as I have documented in the past, one of the slave member states of the PIIGS, Ireland, continues to struggle with the recovery myth perpetuated by the IMF, Federal Reserve, and European Central Bank. The story from the Friday edition of Business,etc. of the Journal in Ireland tells the tale of reality once again:
How bad is it? The Irish government’s own charts do not lie:
The problems are as bad as the chart above indicates as there has been a recovery within the financial industry of Ireland but as with the United States, no recovery for the middle and lower classes. The article from the Journal linked above speaks volumes about the severity of the crisis:
The quarterly figures on arrears and repossessions from the Central Bank show that up until the end of June there were 97,874 mortgage accounts in arrears, up 2,320 on the figures to the end of March.
That number represents 12.7 per cent of the total mortgage book in Ireland. In total, 142,892 mortgage holders are in arrears in Ireland.
The total amount owed to lenders by those in arrears of any period is over €2 billion.
Longer term arrears over 180 days have also increased, by 3.4 per cent, to 28,303. Those in arrears over the two-year mark now account for more than half the outstanding balance, with the 28,860 accounts owing over €1.1 billion.
Thus as the attempts to modify more mortgages using programs like the U.S. HAMP, etc., nothing is accomplished about resolving the solvency issue or ability of the average Irish family to pay. The chart displaying the breakdown of modifications can not be encouraging to the Irish government either:
With the modification process failing to alleviate the problem much like what is occurring here, it is only a matter of time, possibly months, before the Irish financial crisis moves back to the front pages and attention of the financial press like their other PIIGS counterparts have recently. For that matter, it is only a matter of time before the biggest PIIGS member not represented in the abbreviation moves to the forefront ahead of all the rest:
The United States of America.