November 11, 2010

Vincent Brown on Kilkenomics and the crisis

Posted in News · 2 comments ·

Last night’s ‘Tonight with Vincent Brown’ show featuring myself, Bill Black, Vilhjálmur Bjarnason and Dearbhail McDonald is now online.

Click here to watch it.

And hope to see you all in Kilkenny over the next few days.

  1. george

    David you were superb last night with Vincent Brown. And the two guys you brought with you were amazing as well. I am with you regarding the restructuring of the national debt, and mortgage debt for the general public, but I have some doubts regarding the possibility of achieving it, if the issue of the Public Sector isn’t addressed simultaneously.

    My point of view is the following.
    Lets take what happened in Argentina during “the default”.
    The then president Néstor Kirchner told the bondholders “get in line and you’ll be paid whenever and whatever we can”. He devalued the currency to help the productive sector, and he increased the retentions (taxation) mainly over soja beans, the main argentine export’s commodity.
    Straight away the Country had commercial superavit and the State fiscal superavit, that allowed the Government to spend money to assist the poor, and to do public works to increase employment. He kicked the IMF out of the country, and by telling the bondholders “if you don’t accept my offer you’ll get nothing”, he reduced the debt approximately in 50 billion dollars, and today Argentina has almost 60 billion dollars in reserves in the Central Bank.

    If Ireland declares isn’t going to pay the debt and has to live from the money it generates. And if then the EU decides to stop the subventions it pays to the agricultural sector and others. And if the State has to spend 50 billion to run the Country, and only gets 33 billion, and can’t devalue it’s own currency to help the productive sector. And people in the private sector has to work until 65 years of age so people in the Public Sector in some cases can get early retirement at 50 or 55 with exhorbitant pensions, paying only a fraction of the real contributions.
    And if salaries, pensions, and conditions in the Public Sector are not modified.
    What realistic chance do we have that a “debt default” in our part it’s going to be successful?
    Where the money is going to come to keep the economy going?
    Isn’t the case that simultaneously we have to talk about the Public Sector issue, including the fees, doctors, lawyers, and accountants get from the State , and debt forgiveness?

    The following is an excerpt of the article professor John O’Hagan wrote yesterday in the Irish Times

    Tue 11 Nov 2009Fair is fair — public pay cuts of up to 20% justified
    ANALYSIS:The simple truth is that the cost of providing public services is too high. There must be benchmarking in reverse; the case for pay cuts is compelling
    MUCH OF the emphasis on the need to cut the pay of public sector workers has taken place in the context of having to reduce the fiscal deficit. This is the imperative that informs the debate, and rightly so. There are, though, other reasons for reducing the pay rates of public servants, which give added legitimacy and moral force to the fiscal rationale

  2. When I click on the above link its leading me to a different edition of the Vincent Brown?

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