The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
This whole Ireland is insolvent meme is nonsense.
Perhaps you should be arguing this point with the bond raiders, who seem unusually keen to assure everyone otherwise.
And if you swear fealty to "the markets", how do you think they will react to a default?
In the case of Ireland, if you think Ireland is solvent, then it is in fact being subjected to an irrational run (withdrawal of short-term liquidity). The proper response in that case is for the Central Bank to provide liquidity at a reasonable non-market rate.
Instead of that the Central Bank tells the Irish government to call in the IMF.
Also, when the European Council tries to organise a collective fiscal facility, Germany screams "no bail-out clause!". When the ECB tries to buy sovereign bonds in the secondary market, the (German) Chief Economist and the Bundesbank chair wrongly claim that is forbidden by treaty (the treaty forbids buying at issue, which is bad enough already). The European Commission, Council, Ecofin and Central Bank are all such neoliberal market-worshippers that they actually take the market's assessment of Ireland's solvency at face value.
The Irish "rescue package" entails, under any plausible scenarios, including the ones put together by the Ecofin, an actual increase in the Irish debt burden, while at the same time demanding IMF-style "conditionalities". Some "rescue". No wonder the Irish government didn't want to be "rescued" and had to be forced.
Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Frank Schnittger - Jul 22 32 comments
by tyronen - Jul 13 224 comments
by Frank Schnittger - Jul 20 29 comments
by rifek - Jul 16
by rz - Jul 20 10 comments
by rz - Jul 16 23 comments
by Frank Schnittger - Jul 13 25 comments
by rz - Jul 15 24 comments
by Frank Schnittger - Jul 2232 comments
by rz - Jul 2010 comments
by Frank Schnittger - Jul 2029 comments
by rifek - Jul 16
by rz - Jul 1623 comments
by rz - Jul 1524 comments
by rz - Jul 142 comments
by tyronen - Jul 13224 comments
by Frank Schnittger - Jul 1325 comments
by marco - Jul 1030 comments
by rz - Jul 722 comments
by tyronen - Jul 7141 comments
by rz - Jul 633 comments
by Frank Schnittger - Jul 669 comments
by Frank Schnittger - Jul 414 comments
by chumchu - Jul 259 comments
by Frank Schnittger - Jul 1159 comments
by Metatone - Jun 2951 comments
by Luis de Sousa - Jun 2824 comments
by Frank Schnittger - Jun 2832 comments