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View Full Version : Ireland could teach the UK a lesson on paying down Debt?



mutley
05-04-2010, 01:25 PM
http://www.telegraph.co.uk/finance/comment/liamhalligan/7549877/Rebounding-Celtic-tiger-offers-UK-harsh-lessons-in-demolishing-debt.html


True, Ireland has racked up a 2009 budget deficit equal to 11.7pc of national income – almost as ghastly as that of Greece. The difference is that Ireland took, and is continuing to take, genuinely decisive action to get its fiscal house in order. There's little talk among ministers in Dublin of "just a few more months of Keynesian boost". The Irish have rolled up their sleeves, spat on their hands and are getting on with the job.

What horrific spin, surely this should be re worded to say, that FF took genuine decisive action to bail out the banks at all costs, and damm the Tax payer to hell


As a result, the country's government and taxpayers have been rewarded. The "spread" the bond markets charge to hold Irish 10-year debt over the German "bund" equivalent is now 139 basis points, less than half as wide as this time last year. The Greek spread over the bund, meanwhile, is 316 basis points – more than twice as high as that of the Irish – with Athens now paying far, far more than Dublin to service government debt.

Have we the tax payer been rewarded? Because it seems to me that it is the bond holder that must be rewarded at all costs




Faced with such a predicament, Brian Cowen's Fianna Fáil-led coalition government did what it needed to do – imposing a one-off fiscal squeeze equivalent to around 6pc of GDP. Through a combination of pay cuts, tax rises and curtailed public spending, the Irish implemented an austerity programme that would have been met with nationwide strikes, perhaps even rioting, in many other European countries.

Yes the Irish bent over and took it


The government last week confirmed a deal with Irish trade unions, under which future pay increases for the country's 350,000 state employees are tied to equivalent efficiency savings in public service delivery. It's an innovative scheme, achieved with only a smattering of industrial action.

I thought this was far from certain?


Such an outcome reflects that debate Ireland has held on how to escape fiscal crisis – which, for the most part, has been conducted in an informed and relatively honest manner. In a country that's no stranger to political rancour, that's some achievement.

"Irish workers and taxpayers have faced up squarely to what is, remarkably, widely understood to be a necessary belt-tightening," said Patrick Honohan, the Governor of the Central Bank of Ireland, last week. As a result, the Irish government is implementing over a single year a fiscal correction of the same magnitude that the British Government insists will take at least four.

"This is the only show in town" is not a debate, informed and honest, it was not


Financial markets didn't cause this crisis. What caused it was fraud, dire political leadership and a lack of genuine regulation. By guaranteeing bank bail-outs, weak governments stopped financial markets from working. By allowing financial institutions to lever up their balance sheets 40-fold, myopic policymakers spun the markets out of control.

He is talking about the UK here, but he sure as hell could be talking about Ireland.


The comments under the article are also worth a read.

Is is absolutely nausiating that in some circles FF, are been hailed as some type of Economic masterminds.

C. Flower
05-04-2010, 01:33 PM
Yes - like getting praise on child care from Herod.

I don't agree with them that what has happened is because of peoples' moral and ethical failings. These booms and crashes have happened over and over again for more than 100 years. The weakest spots fracture first. The pressures are from overproduction and the downward pressures on profit rates.

BrendanGalway
05-04-2010, 01:57 PM
"Faced with such a predicament, Brian Cowen's Fianna Fáil-led coalition government did what it needed to do – imposing a one-off fiscal squeeze equivalent to around 6pc of GDP. Through a combination of pay cuts, tax rises and curtailed public spending, the Irish implemented an austerity programme that would have been met with nationwide strikes, perhaps even rioting, in many other European countries."

Yes the Irish bent over and took it


Brilliant! :D

More seriously, That is a brutal article. It makes out that we are led by a Capable and honest Government backed by an Informed people who have given their consent to this course of action. The reality is we are being "led" by a cabal of the corrupt and incompetent who are stumbling around, trying desperately to pull themselves out of the Quicksand by standing on our heads.

I would not advise any other Nation to follow our lead on Economic matters.

"As a result, the country's government and taxpayers have been rewarded." Im sorry, WHAT!?

mutley
05-04-2010, 02:17 PM
Looking on it from another Angle, It could be high praise for FF, who have followed in their Old British masters footsteps, and succeeded in replacing one set of landlords, with another.

mutley
05-04-2010, 02:19 PM
Yes - like getting praise on child care from Herod.

I don't agree with them that what has happened is because of peoples' moral and ethical failings. These booms and crashes have happened over and over again for more than 100 years. The weakest spots fracture first. The pressures are from overproduction and the downward pressures on profit rates.

Yes and we are being encouraged to buy property again.
Buy a house at an inflated price, with less disoposable income.

Garland Names the Planets
05-04-2010, 03:02 PM
Yes and we are being encouraged to buy property again.
Buy a house at an inflated price, with less disoposable income.

Why is it inflated? Inflated from what?

mutley
05-04-2010, 03:18 PM
Why is it inflated? Inflated from what?

It is inflated due to a property bubble, that the government has tried to prevent from popping.