IMF says Ireland must cut wages - IT

[The_Unwelcome_Guest]

@LynchNeary

@The Unwelcome Guest

Get back on topic.

The topic is macroeconomics not transport.

Well why did YOU bring it up then?

I didn’t bring it up as an issue for discussion.

It was as an aside in a post that dealt with your mischaracterisation of PtG’s argument, still with us?

Now get back on topic.

[undertone]

The only way exiting the euro would affect people would be to rob anyone with savings of the worth of them - to rifle the pockets of savers like Max Keiser says of low interest rates in the US. We’d print punts like they were going out of fashion with consequent massive inflation wiping out savers. I’m sure the govt. would love to do it.

[Puck_may_be_Famous]

@undertone

The only way exiting the euro would affect people would be to rob anyone with savings of the worth of them - to rifle the pockets of savers like Max Keiser says of low interest rates in the US. We’d print punts like they were going out of fashion with consequent massive inflation wiping out savers. I’m sure the govt. would love to do it.

I think in Argentina they also stole all the assets in people’s pension funds.

Or rather they didn’t “steal” them. It was just a compusary purchace with pesos. In the national interest don’t ya know.

[FAUGH45568]

Leaving the Euro is not a problem at the moment because we dont have to renegotiate for any reason yet…

Mkts are happy that we are getting our house in order ATM…

However failure to repay our huge debt burden or failure to implement savings as planned

then it becomes a problem…

This IMHO is the big Gorrilla for Ireland and is one we will be tested on in the future, when the Credit Crisis erupts again…

That is my Thesis for me…I original thought leaving the euro was a done Deal but have being told otherwise…

This kind of thing does not happen over night…

Wait for the signs, there will be plenty of them…

At the moment they are there for Ireland but being dealt with and NOT swept under the carpet…

[lord_vader]

@Calina

@watch+wait

They have a point, If we wait for inflation to do the job for us it could take 15-20 years to regain competitiveness.
however no-one has ever managed to cut wages in an orderly manner as they suggested.

IMHO leaving the Euro is still our best option to regain competitiveness and re-value our debts.

This is only viable if we also default on external debt. I realise David McWilliams is singing this aria but it’s delusional given how much of our debt is external. A new currency will collapse against the euro and dollar leaving our external debt exploding. It gains us a lot of pain unless we also default. I am in favour of debts being paid whether they are mortgages or sovereign. It is the only way of ensuring a credit line.

unfortunately default is the only realistic option at this stage. public and private debt is simply too great to service let alone repay. you can try and put it off for a few years by bleeding the economy white but its only a matter of time

[whizzbang]

@Inis Man

@LynchNeary

For all its faults, Ill take Ryanair anyday over the ripoff Aerlingus/BA duopoly that consigned people like me to the ferry.

You make it sound like going by ferry is some great hardship, but if the weather’s OK it’s a fine alternative, in fact it’s the way to go IMO.
A couple of months back I got the ferry and train via Dublin to Birmingham, a walk on price of about 42 euros, and door to door only maybe an hour longer than flying.
If the ferry companies and train companies in the UK could do more about synchronising departure and arrival times so there’s no hanging around between ferry arriving and train leaving, then a LOT more people would take this option.

Not sure it would work for a 10am Meeting in London