April 28, 2010
Dear David – see below a copy of an email to Fintan O\’Toole, which is relevant to your writing.
I very much enjoyed your questions on Pat Kenny last night, especially the one about incompetence versus collusion which did not get an answer.
But, there is another question that has not been asked. It is assumed that the ECB lending the government money for the budget deficit is a good thing. It is not a good thing. It is like digging when one is in a hole. Borrowing more money because we are overborrowed, is bad. If the ECB were not lending us this money, we would have to cut our cloth according to our measure – that is what households and the private sector are having to do, instead of creating even more debt which will have to be repaid in the future.
cc David McWilliams
The Property Pin