Trichet in Dublin

A nice quote that one. Trouble is most of the world was “rebalancing” on the brick wall out the front of their house. Ireland was rebalancing on a wire strung between the tops of the Petronas Towers, then the gust hit.

I fear that the tone of Trichet’s speech may just be too polite.

We need some of our more informed posters to point out this will no nothing but intensify the recession.

Pro cyclical certainly, but completely necessary for the specific circumstnaces unfortunately.

:laughing:

People need to seriously stop trolling each other in the serious fora. It’s pretty juvenile.

Take it to the piston broke if you must.

Sorry miss :blush:

Anyway, a quick decode of M. Trichet’s remarks:

  • Ireland is in the shit
  • Public wages are too high
  • Taxes are too low
  • Public spending is too high
  • Private sector costs are too high
  • Private sector wages are too high
  • The economy is uncompetitive
  • Construction and banking will not return to the size they were - get used to it (interesting how he links the two)
  • Europe is paralysed by disagreements, so for the moment, you’re on your own.
  • Don’t endanger the stability of Europe…

Fair enough?

Nah, he’s just looking for a figure to put on the blank cheque… :wink:

Only mildly pro cyclical in a small open economy surely?

A deficit of 10%+ of GDP and inherently structural. Ireland missed the boat on getting its fiscal house in order a good number of years ago.

Yes but the point I am making is that effects from ‘pump priming’ in a SOE are mainly exported so I would assume an inability to ‘pump prime’ owing to FUBAR-ness of present position does not make much difference?

Ireland isn’t really an SOE, more aptly desribed as a re-exporter, along the lines of Hong Kong or Belgium. Import leakage is driven by export demand, which will be independent of domestic demand (i.e. fiscal policy). Have a look at what input-output data is available for Ireland.

He should just hand over the signed, blank cheque, let us worry about putting a figure on it :smiley:

Spot on and you tie this in with what Angela Merkle said today in relation to ‘keeping a close eye on Ireland’ , get out your German phrase book folks, they are on the way . The Germans have been saying most of that for 10 years, but Charlie McCreevy gave them the two fingers and now they are rightly pissed off cos they have to bail us out. Lets see the public service union reaction then when they are told they are going to get a 30% pay cut.
Its not like the IMF or EU will be giving peopel a 30% pay cut, in reality in fact they are giving them 70% pay, after all it will be their money !

Speaking of McCreevy, the neck of him giving a lecture today about lack of regulation, pro-cyclical fiscal policies and too much consumer debt!

And as usual, not one person in the meeja called him on the breathtaking hypocrisy.

Hanging’s too good for them.

“Guarded optimism”??? What fucking guarded optimism? (9.1. news…). Spin and spin and spin…

Full text of the speech:
ecb.int/press/key/date/2009/ … 26.en.html

On Ireland: