March 16, 2011

What Next? Prime Time on Default last night

Posted in News · 9 comments ·

  1. adamabyss

    Good show, the message seems to be finally getting through.

  2. Jargon

    I was critical of David for, in my opinion, not pushing the issue infront of the cameras during the election. Very impressed lastnight.

  3. paddythepig

    I watched this, and what was clear to me was that there is 22 billion in unguaranteed senior debt, and 40 billion in guaranteed senior debt. The two contributers agreed that some haircut could be looked at with the 22 billion, but disagreed on the other 40 billion.

    What wasn’t discussed, and in fact what is never discussed by David is the ultimate default. That is to default on the lard that is the Irish state spending. How come we could run the country in 2003 on 35 billion, and now it takes us 55 billion? The country didn’t fall apart in 2003, did it? The default that is required is to get back to 2003 spending levels, to trim the unproductive elements out of the public service haste post paste, and to stop wasting our childrens money. This is the real default. There are two games in town.

    1. Negotiated restructuring of the 22 billion unguaranteed debt, and to tread very carefully regarding any other debt i.e only restructure if you are sure if does not affect any other necessary funding for either the state or our banks.

    2. Get state spending back to 2003 levels, the sooner the better.

    • Colin

      Good point paddythepig,

      I’d go further and bring spending back to 1998 levels (where property prices should eventually fall to also), something your friend Tim here would be aghast with. All things unsustainable eventually fall apart, and believe you me, cossetted public sector workers and pensioners are in for one hell of a beating, and not a day too soon if you ask me.

  4. des

    I agree fully with Paddythepig – Take for example our local school with 32 children. 2 Main teachers, 2 resource teachers, a classroom assistant, a maintenance person. I went to the same school with only 2 teachers and we got exactly the same if not better education. the Public Sector Spending is crazy – and most is on wages. The Garda Drivers for the ministers can retire on Captains Pensions at the age of 50 – CRAZY…

  5. blackcase

    I too agree FULLY with paddythepig! Just use the JFDI and Fugdabegrudgers Project Management Method. Do it! Take cover from the Union explosion. And when its over – move on!

  6. Save the People

    David, you were excellent on Prime Time. I greatly appreciate that you brought the option of finance from China into the public domain on national television. It is an option which the public deserve to be made aware of.

    I hope you will expand on this point to the people of Ireland by outlining the potential terms and rates of finance available from China.

    The government appear unwilling to play the China card with the ECB, however if the public are made fully aware of the terms and rates available from China, public opinion could force the government to play the card. I firmly believe that the ECB and indeed the EU member states would rally to our aid with the possibility of finance from China on the horizon.

    As the most prominent economist in the country with the reputation of predicting the mess we now face, I firmly believe that you have the ability to bring the specifics of the Chinese finance alternative into the forum for public debate.

  7. olobrown

    Is there a possibility that within the eu the ecb can adopt a two layer interest rate system. Ie set interest rates according to each countries inflation/growth performance?

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