Uk Bail out money is flowing out of England, could the same happen in Ireland?

Run_to_da_hills

"In the UK the Bank is in the process of purchasing about £75bn of government securities, or gilts, over a three-month period, the first instalment of a massive £150bn programme. The Bank is effectively converting these government securities or gilts into cash and bank balances which, it is hoped, will be used to support lending and spending in the UK and boost the economy"

"But City experts analyzing the scheme for The Independent say large quantities of money will simply end up abroad because so many of the gilts are held by foreign investors. They fear that they will hoard the cash, which will be of no benefit to the British economy, or dump it in favour of safer currencies, which could cause a run on sterling. More than a third of gilts are owned by foreign entities, official statistics reveal, and there are doubts about how effective the policy will be if that sort of proportion of the new money is diverted abroad".

I know that we have some advantage over the UK at being tied in with the strength of the Euro but what is the prospect of something similar happening in Ireland? It would be an awful shame if it were to happen here as it would be tax payers money that would be leaving the country.

http://www.independent.co.uk/news/uk/home-news/bailout-money-is-flowing-abroad-1644887.html

johnnyskeleton

Most likely, Irish bailout money will be put into the banks and they will not use it to lend to businessess or other private individuals. They might use it to buy assets that are equivalent to cash, but remember that the bail out money is intended to make sure the banks don't fall apart primarily and the secondary effects to the economy are incidental. Therefore, the banks will do whatever they think is best to keep them afloat, and if this means buying bonds from other countries, I wouldn't put it past them.

boufer

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

Ostrom

boufer wrote: »

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

Find out

Flamed Diving

boufer wrote: »

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

http://www.ean.ie/2008/world-bank-publishes-latest-migration-and-remittances-factbook/

Even better, though from 2005:

http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1181678518183/Ireland.pdf

It works out at about $500m per year from 2000-2005. Now we need to work out how much their labour actually contributed to the Irish economy. Although it should be obvious without this data that their contribution far outweighed their remittances.

Some useful papers, perhaps:

Immigrants in a Booming Economy: Analysing their Earnings and Welfare Dependence
http://www.entemp.ie/trade/marketaccess/singlemarket/06serv659.pdf

EU enlargement and migration: Assessing the macroeconomic impacts
http://www.esri.ie/publications/latest_publications/view/index.xml?id=2199

Knock yourself out...

_Nuno_

boufer wrote: »

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

A small fraction of what the Irish immigrants abroad have sent to Ireland over the years?

silverharp

boufer wrote: »

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

What has that got to do with bailout money? the retort is how much pointless debt was built up by Paddy and spent on usless consumption items like imported cars and junk property around Spain and Eastern Europe.

boufer

Flamed Diving wrote: »

http://www.ean.ie/2008/world-bank-publishes-latest-migration-and-remittances-factbook/

Even better, though from 2005:

http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1181678518183/Ireland.pdf

It works out at about $500m per year from 2000-2005. Now we need to work out how much their labour actually contributed to the Irish economy. Although it should be obvious without this data that their contribution far outweighed their remittances.

Some useful papers, perhaps:

Immigrants in a Booming Economy: Analysing their Earnings and Welfare Dependence
http://www.entemp.ie/trade/marketaccess/singlemarket/06serv659.pdf

EU enlargement and migration: Assessing the macroeconomic impacts
http://www.esri.ie/publications/latest_publications/view/index.xml?id=2199

Knock yourself out...

Cheers!!!

boufer

_Nuno_ wrote: »

A small fraction of what the Irish immigrants abroad have sent to Ireland over the years?

Maybe, but that has been over generations. I'm talking about the last few years.

Flamed Diving

boufer wrote: »

Cheers!!!

I clearly had too much time on my hands at work today.

_Nuno_

boufer wrote: »

Maybe, but that has been over generations. I'm talking about the last few years.

It's completely meaningless, a drop of water in a storm, nevertheless times of economic trouble are always a nice opportunity for xenophobes to come out and gather support. Immigrants are always an easy scapegoat and so much easier than taking a bit of responsibility for the mess the Irish have gotten themselves in...

Dannyboy83

boufer wrote: »

In a sort of way this has already been happening. Since 2004 hundreds of millions have left out shores. How many migrant workers from recent accession states have worked in Ireland and sent the vast bulk of their disposable income.???????

You mean the money that the Germans charitably donated to us, for which we made the immigrants work and paid them sub-minimum wage?

that money?:D

boufer

Flamed Diving wrote: »

I clearly had too much time on my hands at work today.

clearly... cheers again;)