David McWilliams: Ditch the Euro

[seabhcan]

Can the euro-fans on this site demonstrate a clear strategy to deflate our way out of the mire or a clear strategy to get the ECB to adopt a more aggressive attitude and take inflationary steps.
Failing that everything has to be on the table.

The ECB will rightly do whats best for the major economies - if they were to cripple them to help us, we'd have no market for our exports.

We will have to take some pain. Rents are down about 30% already. House prices are heading to a 50% decline. This is deflation at work. No strategy is needed.

[DS-09]

Also if poland joins the euro at a weak rate in the near future which is possible, how can we possibly compete with them? Even worse if sterling joins at a weak rate how do we compete with the brits?

Great thread eurosceptic. Isn't it remarkable how so many europhiles can talk up the benefits of membership of the European Union- yet always usually very vague when it comes to describing what those benefits are. For instance how many of them can honestly counter the argument that we are indeed been entangled with the European continent, and ensnared in the legalistic and authoritarian rangelings of the Brussels mafia, in which little or no benefit is provided for your average Irishman and woman. Not one of them could counter-argue (in a reasonable and factual manner) why we should be in such a political union (slowly becoming a federal structure), when all we really need is trade with all of these other nations.

Also i'm suspicious of the intentions of certain individuals on this thread, when they make excuses like "without Europe, we'd be run by corrupt....." Seems to me like some people have some skeletons in their closets, or little secrets that their not disclosing openly with the rest of us (there is something very fishy and covert about some pro-EU intentions)

[McDave]

Can the euro-fans on this site demonstrate a clear strategy to deflate our way out of the mire or a clear strategy to get the ECB to adopt a more aggressive attitude and take inflationary steps.
Failing that everything has to be on the table.

What kind of questions are these? Anyway:

Deflation: I wouldn't recommend it. What I would heartily recommend is a substantial reduction of costs in the Irish economy, and a serious effort to regain some semblence of our competitiveness. Then the Irish Times can at last go head-to-head with the Daily Telegraph, at least on cover price!

Inflation: I certainly wouldn't invite the ECB to inflate the Eurozone. Do you seriously propose printing money (or whatever the silly euphemism the Anglosphere is using for this macroeconomic "policy")? The Eurozone isn't the UK or Wall Street you know.

[FutureTaoiseach]

Well before we joined the EEC, Ireland was Britains backgarden- we were completely dependent on Britian now is that what the men of 1916 had in mind?

We could have gotten that by retaining the 1973 model, rather than constantly building on it ever 5 or so years. What you are talking about pertains to free-trade, which could have been agreed with Association agreements as with Norway and Switzerland. I'll also have you know that 20% of our exports go to the US, and that US multinationals are responsible for 80% of exports from Ireland. We are closer to Boston than Berlin, and the lobbying of Congress against Obama's proposed crackdown on multinationals setting up in low-tax economies like Ireland underlines this reality, even if the elites here haven't copped on to that yet. I support EU membership but remind you that the Celtic Tiger didn't start until the mid 1990's, but which time Ireland had been in the EU for 22 years, and that since 1973, most years of Irish membership entailed mass emigration and mass-unemployment, and that the latter has now returned.

[ibis]

What kind of questions are these? Anyway:

Deflation: I wouldn't recommend it. What I would heartily recommend is a substantial reduction of costs in the Irish economy, and a serious effort to regain some semblence of our competitiveness. Then the Irish Times can at last go head-to-head on with the Daily Telegraph, at least on cover price!

Inflation: I certainly wouldn't invite the ECB to inflate the Eurozone. Do you seriously propose printing money (or whatever the silly euphemism the Anglosphere is using for this macroeconomic "policy")? The Eurozone isn't the UK or Wall Street you know.

Are you seriously suggesting that we "get out" of this by taking the pain of structural readjustment, rather than pulling some clever accounting trick that allows us to pretend for another while that we've escaped the consequences of our own stupidity?

Out-fecking-rageous. Can't believe anyone would suggest that.

[marmurr1916]

We could have gotten that by retaining the 1973 model, rather than constantly building on it ever 5 or so years. What you are talking about pertains to free-trade, which could have been agreed with Association agreements as with Norway and Switzerland. I'll also have you know that 20% of our exports go to the US, and that US multinationals are responsible for 80% of exports from Ireland. We are closer to Boston than Berlin.

Is that such a good thing. The USA ('Boston') went crazy over a property bubble with ruinous effects on its economy as did we.

Berlin did not but it's paying the price for our recklessness and the recklessness of the US.

I support EU membership.

An increasingly hollow claim.

but remind you that the Celtic Tiger didn't start until the mid 1990's, but which time Ireland had been in the EU for 22 years, and that since 1973, most years of Irish membership entailed mass emigration and mass-unemployment, and that the latter has now returned.

And leaving the euro is going to fix this?

Please explain how Mr. 'We can keep a single currency but have different interest rates' Financial Genius.

[FutureTaoiseach]

Is that such a good thing. The USA ('Boston') went crazy over a property bubble with ruinous effects on its economy as did we.

Berlin did not but it's paying the price for our recklessness and the recklessness of the US.



An increasingly hollow claim.



And leaving the euro is going to fix this?

Please explain how Mr. 'We can keep a single currency but have different interest rates' Financial Genius.

I have always said I support the euro.

[marmurr1916]

I have always said I support the euro.

Well you support your bizzare interpretation of the euro as a single currency which can allow for different interest rates in different countries.

[DS-09]

Well before we joined the EEC, Ireland was Britains backgarden- we were completely dependent on Britian now is that what the men of 1916 had in mind?

You've hit the nail on the head, yeahh thats what 1916 was all about . Look do us all a favour, and ditch your avator dmc444

[FutureTaoiseach]

Well you support your bizzare interpretation of the euro as a single currency which can allow for different interest rates in different countries.

Because the ECB interest-rate contributed decisively to the housing-bubble and crash. Economists have acknowledged this.