3.7 billion deficit in Q1 - Lenihan says economy is "weak"

[Simbo67]

There are many damning figures in that release; however, the 8% increase in current spending in incredible. Of course, social welfare payments have sky rocketed but to think that the government can not control government spending enough so that it has increased by 8% in this, the most horrible of years.

[Right is right]

Now folks calm down....its not that bad....its not as if we have a "structural" problem with the tax system due to the fact that we have created a long term spending path based on short term income stream that cannot be repeated or replicated.....and the person responsible for that "structural" problem who did nothing about fixing it could be in charge of the country...

[Mitsui]

Now folks calm down....its not that bad....its not as if we have a "structural" problem with the tax system due to the fact that we have created a long term spending path based on short term income stream that cannot be repeated or replicated.....and the person responsible for that "structural" problem who did nothing about fixing it could be in charge of the country...

I hate to be the one to tell you this, but...

[petervalhala]

Why is this party still running the show here? If this was a boxing match the ref would have stopped it ages ago. They have done more than enough damage to the country and its reputation.

LENIHAN AND FF SHOULD DO THE DECENT THING AND RESIGN NOW.

Do you actually have a functioning brain? Or are you just an incurable biggot?

Its getting rather tiresome, but extremely amusing, to see your never ending predictable anti FF ravings.

Do you froth at the mouth as you type? Or are you dictating to someone who is literate in order to post here?

[Dubliner]

Do I hear a resurgence of those three nasty letters...?
India Mike Foxtrot?
Julian

Some people seem to be looking forward to this prospect as way of getting payback against teachers and nurses and anyone better paid then themselves, seeing as they can't get at the banksters.

Here's what would happen: they'd fire a bunch of public servants. Enjoy. Then they'll cut social benefits. If your parents are pensioners, you'll have to support them. If any of your extended family were fired, they'll be looking to you for help too.

Then the IMF will sell off the electricity, gas, roads and water utilities at fire-sale prices to the Chinese who will run them the from their own call-centres, sending in their own workers to maintain them and charge you lots more than at present.

Oh, you'll be paying more tax too...the national debt and all that.

[Marlowe]

To be fair to the governemnt, they are borrowing at roughly 5% to get 8% on the preference shares from BoI and AIB. As far as I can see none of this years or next years NPRF conribution will go anywhere else.

Your argument is anyway a bit simplistic - a bit like saying don't invest in a pension until you pay off your mortgage.

We should only invest money in the NPRF when we have budget surpluses.The NPRF has been steadily losing money.So now we borrow money to put in to the fund,and then raid it to finance the banks.
I would wager that there is no way that borrowed money invested in the fund will make a profit over the next 20 years over and above the cost of borrowing that money.It would make more sense to borrow directly to fund the banks,except that the cost now shows up in the calculated deficit. But we are paying dearly for this sleight of hand.
I have no confidence at all that the banks will be able to repay at an 8%.
A deal will be done,and we will never see an 8% return.

[handinglove]

Slash and burn policies will DEEPEN the recession. What do you think are the biggest costs involved in the provision of Public Services? You guessed it, Labour. What do you think is going to happen if even more people get laid off. Thats right, a further collapse in consumer spending and confidence, leading to more job losses and down the ********************ter we go. Cop on lads, the conservative recession beating handbook is discredited.

Massive Fiscal Stimulus is needed along with complete nationalisation of the banks.

[feargach]

Slash and burn policies will DEEPEN the recession. What do you think are the biggest costs involved in the provision of Public Services? You guessed it, Labour. What do you think is going to happen if even more people get laid off. Thats right, a further collapse in consumer spending and confidence, leading to more job losses and down the ********************ter we go. Cop on lads, the conservative recession beating handbook is discredited.

Massive Fiscal Stimulus is needed along with complete nationalisation of the banks.

Spare your breath, it's like trying to explain calculus to your hamster. They're not going to get it.

[Question R24U]

Slash and burn policies will DEEPEN the recession. What do you think are the biggest costs involved in the provision of Public Services? You guessed it, Labour. What do you think is going to happen if even more people get laid off. Thats right, a further collapse in consumer spending and confidence, leading to more job losses and down the ********************ter we go. Cop on lads, the conservative recession beating handbook is discredited.

Massive Fiscal Stimulus is needed along with complete nationalisation of the banks.

Perhaps you can explain this to me. In a small (and getting smaller) open economy we should tax private labour (now and in the future by borrowing ) to keep public labour at high levels and continue to pay social welfare. What lender is going to provide this and at what rate? (feargach pointed out elsewhere that savings of six billion plus could result into largescale mortgage default, but surely there are other ways eg 12 month embargo on issuing proceedings, insurance, state support for interest payments). Is there anything wrong in raising income tax from 25% of all income to a more european proportion and then cutting current spending to the level which current revenue raises?

[draiocht23]

Ah they are doing fine, just fine. Their economics shine right throughout Ireland!!

Time to accept that Dell will quit city, says Mayor - Limerick Leader

The Mayor of limerick called on the Government to start a housebuilding programme to "keep the economy afloat."

Thank god we will be saved next week with the budget of a thousand houses...

A house building programme And, he's not a member of FF - he's an independent.

With local leadership like this, perfectly demonstrating councillors' ability to think outside the box/house, how can we fail?