Ireland - Meltdown approaching fast

Yoshua

So SteveJ what do you think it will mean in real terms in the end?

Generali

StevieJ wrote: »

I am sure they are enjoying the fact that cost of their exports to their nearest neighbour have rocketed It is part of the whole balancing process, you obviously don't remember the UK exit from the ERM.

I never thought the Euro would survive the first recession in the Euro area. I've seen nothing since its inception to make me change my mind.

Why would the same monetary policy and exchange rate level be suitable for Limerick, Lisbon and Leipzig? The Germans and to a lesser extent France have histories of strong currencies. The Italians have had a managed decline in their exchange rate since their post-war industrialisation. Which side gets to continue with their policies and why would the loser hang around in a currency that didn't suit their needs?

tirano

Interesting story of return to Ireland

http://www.irishtimes.com/newspaper/opinion/2009/0211/1233867931066.html?via=mr

StevieJ

Yoshua wrote: »

So SteveJ what do you think it will mean in real terms in the end?

The Euro will splinter into 16 parts, if this does not break it then it will survive for ever :cool:

tirano

Pressure starting to ramp up now

Ireland ‘could default on debt’


http://business.timesonline.co.uk/tol/business/economics/article5733723.ece

Andrew64

It's in the Irish press too:

Default fears as Ireland's debt costs continue to rise

http://www.independent.ie/business/irish/default-fears-as-irelands-debt-costs-continue-to-rise-1639898.html

"THE cost of servicing the national debt continues to rise with investors becoming increasingly concerned at the possibility Ireland will default on its soaring debt pile."

"Credit-default swaps on Irish government bonds jumped 95 basis points to a record 355 basis points or 3.55pc, the most of any euro area country. This rate compares to 265 basis points on products insuring against a default by the Greeks. Part of the problem is the government bank guarantee scheme - the debts held by Irish financial institutions are more than 11 times the size of the economy, according to BNP Paribas SA. "The biggest budgetary offenders are facing a difficult future," Mr Brzeski said."

Degenerate

Count_Dante wrote: »

US states have substantial control over their own budgets, and somehow the US single currency - the dollar - has been a success.

Above it all they still have a strong Federal Treasury, with Federal taxation and a single finance minister. The amount of money that flows inwards as subsidies from the rich coastal states to the poorer central areas dwarfs anything in the EU. The Euro would work properly if backed by a similar United States of Europe, but thats not what we have.

kennyboy66_2

tirano wrote: »

Interesting story of return to Ireland

http://www.irishtimes.com/newspaper/opinion/2009/0211/1233867931066.html?via=mr

What an utter whingebag. He returned to Ireland in 2000 and published a novel in 2001.

Writers, authors and composers pay no tax in Ireland.

Could these 2 facts possibly be connected ?

globalds

It all looked pretty dire over there last week .
I Visited 3 construction sites where I expected bad news ..but even the people in the hotel were resigned to the fact that it was all collapsing.
And blame was being placed partly on the Euro.

beaujolais-nouveau

tirano wrote: »

Pressure starting to ramp up now

Ireland ‘could default on debt’

I was chatting this evening by telephone to an old friend in Dublin. She said that Ireland - population just over 4 million - is borrowing 3m PER DAY. How long will that take the Irish to repay?

And I wonder how much the UK is borrowing per day.