The admirable marchers of Ballyhea, County Cork, recently met with their local Fine Gael T.D. He/she said to them that it was government policy to try to get a write down of up to 50% in three or four years, "when our debt has become utterly unsustainable."
http://thechatteringmagpie14.blogspot.com/The Deputy outlined out to us the government policy, their hope that in three or four years, when our debt has become utterly unsustainable, we will get a write-down "of up to 50%" from Europe. We pointed out that at that stage the bulk of the bank bonds will have been paid and the one major bargaining tool we still have will be gone, surrendered, the private bank debt now all transformed to sovereign. This will then be sovereign default, for which we will pay a massive price. The guidelines we get to meet the current EU/ECB deadlines? Forget it - sovereign default will mean the troika now dictating line-by-line and top of their list will be our Corporation Tax rate, followed by our old-age pension rates, social welfare baseline rates, and so on and so on.
This rings true, as no one in their right mind can think that the national debt is repayable.
It is also, as the Magpie says, appalling, as in two or three years time, all of the bank debt will have been repayed, and the remaining debt will all be locked in as sovereign, Irish-based debt, on which we cannot default.