I think I read somewhere that because of the massive inflation in Zimbabwe and the complete lack of funds on the part of the government, that the public sector was paid in some form of government bonds. What would Zanu-FF do in such a situation?
Could they do the same in Ireland: private sector is paid in Euro as normal, but public sector paid in PS Bonds of low denomination e.g. 1 bond coin, 10 bond note, 100 bond note etc?
The bond could be set notionally at €1 each when wages are converted, but ultimately will trade for less than €1 each. Thus, the necessary devaluation in public spending could take place without leaving the euro, and since the public sector seem to think that they can survive without the priavte sector, surely the fact that they have to use government bonds rather than euros makes no difference to them.
Why not go a step further as well, and social welfare would also be paid in these bonds, but specially marked social welfare bonds which can only be spent on food, clothes etc. The slum lord landlords who make a packet out of rent allowance would be left with a load of these bonds with not much to spend them on.
But wait, here’s the best part. The banks are required to hold the NAMA bonds rather than exchange them for loans with the ECB. So instead of lending euros to joe soap to buy a house, they lend him NAMA bonds (as many as he likes). Then, he can only buy a property off a NAMA developer for whatever price he wants. The developers take these NAMA bonds and repay the banks with them. Thus, developers get off scott free, the banks lose their toxic loans, joe soaps buy houses and everyone is happy again. The NAMA bonds experience hyper inflation and so become worthless, which is also part of the plan.
Then, when the ECB cottons on to the fact that we are secretly issuing parrallel currencies, we say sorry, withdraw all these bonds and re-denominate them at current market prices. So if PS bonds are selling for 90c now that’s an effective 10% pay cut. If SW bonds are selling for 50c that’s a 50% cut in SW right there, and the NAMA bonds are worthless so that’s the whole cost of NAMA paid for for free ( ). And just in case anyone is upset with this, the government can use the extra money gained by the devaluation by a giveaway budget with treats for all.
The annoying thing about the above is that if the Taoiseach, David McWilliams or Peter McLoone said the above it would be treated as a serious suggestion that is unfortunately unworkable at the moment so must be shelved. Maybe the solution to all these crazy ideas is to say them all on the pin first so that no self respecting FFer will dare mention them and will be forced to come up with some sensible ideas (or possibly come up with ideas so crazy that not even in our wildest dreams could we predict them e.g. LTEV).