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I don't know how much of Ireland debt matures in the next 12 months, but it may be more than the balance of trade surplus. Also I don't know how directly a balance of trade surplus translates into Government cash flow to pay off maturing debt.  

So unless you are advocating defaulting on currently maturing Government debt - much of which probably predates the banking crisis and was thus lent in good faith to a Government with a c. 25% debt/GDP ratio - this is debt which should be repaid.

The people who lent to Ireland in the last 10 years are propably quite different to those who bought bank bonds, and so you would be making one set of (arguably responsible low risk creditors) responsible for the sins of those who invested in the dodgy banks.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Nov 21st, 2010 at 02:41:20 PM EST
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