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Thread: If you aren't emigrating, you need to buy solidarity bonds

  1. #1
    Politics.ie Member
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    Default If you aren't emigrating, you need to buy solidarity bonds

    Looking at the following analysis, which I paraphrase for copyright reasons, I have to reiterate the fact that the only course that equates to survival is to take up, en masse, the much-despised but entirely necessary NSB.

    Quote Originally Posted by David McWilliams (paraphrased)
    And now that the State is paying nearly 6pc interest on our debt, this means that the debt-to-GDP ratio will spiral out of control. A simple rule of thumb on debt dynamics is that if a country's debt gets to 100pc of its income, the growth rate must be higher than the interest rate on the debt in order for the debt to become stable.

    Our growth rate isn't likely to reach more than 6pc again in a generation. So without much increased taxation and deep cuts, the deficit will grow beyond our ability to contain. But the more you cut and tax, the lower growth becomes and the more the efforts to cut the debt fail. This is called a 'failed fiscal adjustment'.

    This is the reason the bond buyers are penalising Ireland. As said by Paul Krugman, the Nobel prize winning economist, rather than being rewarded for our orthodox, programme of deficit cuts, the markets are charging us more for debt.
    The key phrase is "the State is paying nearly 6pc interest on our debt". If we reduce that interest rate progressively, then the crisis can be averted.

    Rationally speaking, it's crazy to both stay in Ireland and shun the National Solidarity Bond. You can do one or the other, but it makes no sense to do both.

    We cannot fiscally adjust if the interest rate is too high, so therefore Ireland will have to become bankrupt if the interest rate doesn't fall over the next few years.

    If you're leaving Ireland, and not leaving behind anybody you care much about, then that needn't be a problem. Just watch your own back. But if it's your intention to stay, then you will have to sacrifice a lot of your income into lending to the state. Specifically, you will have to sacrifice the money that you were intending to spend on imported goods and foreign holidays.

    It's an ugly situation, and I am glad my earnings have their roots outside the state and aren't tied to here. I am glad my decisions are my own. I am glad I have no creditors who have any say in my decisions.

    I don't have to choose between living in a broke nation and having a new plasma screen, but people who are locked into Ireland do. I don't have to choose between living in a cold, rainy version of Greece and switching to a moped instead of a car to cut my fuel bill so that I can spend the savings on National Solidarity Bonds, but people who are locked into Ireland do.

    But most Irish people with any income are tied to Ireland by both creditors and employment, and have to stay here no matter what. They have to wise up. They need to loan money to themselves, at a really low interest rate, otherwise they will be sampling the joys of living in a bankrupt state.

    This is very hard to do. We need the media to be pumping the simple sums at us 24/7. Lending dosh to the Solidarity bonds WILL give you a lower return than investing it in other assets, that's certainly a fact. But if you intend to stay in Ireland, you need to do it anyway, because you will be much worse off living in a bankrupt nation.

    It's no longer a set of decisions about how to get the most money: it's down to minimising losses.

    So, once again, if you're staying put, buy the NSB's today.
    When you see the words "Mises" or "Hayek" in someone's post, just ask yourself: do I really want to ban paper money and go back to gold?

    You have to pity the kind of people who buy into conspiracy theories. I find the following to be the saddest words on the internet: "Re: connection between Bilderberg puppet lady gaga and viral outbreak in ukraine "

  2. #2
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    I'd sooner buy a few thousand scratch cards

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    I won't give 'that shower' the steam off my pi** at the moment.
    'We are all lying in the gutter but some of us are looking at the stars'

  4. #4

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    I'd sooner pay to attend a Feargach seminar on Economics.
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Maybe they should call it the'turning the corner 'bond

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    Politics.ie Member LDF's Avatar
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    You could buy 10 yr bonds in AIB and BOI at much better rates than those offered by FF through this solidarity lark. Bonds in AIB and BOI are guaranteed by Lenihan and Co so there is really no reason to opt for the solidarity bond at all.

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    Politics.ie Member Sync's Avatar
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    So because the state have made horrible financial decisions, I should make a horrible financial decision as well and lose on money? No thanks. I pay my taxes. If the state can't make do with those then that's not my issue.
    I'm living in America, and in America, you're on your own. America's not a country. It's just a business. Now f***ing pay me.

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    I would advise every patriotic Irish person to boycott this save-a-developer-and-banker bond.

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    Politics.ie Member libertarian-right's Avatar
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    I love feargach threads. I for one, am sold to the idea.

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    Sure, cut out the middleman; just give me the PayPal details of Liam Carroll and co, and I'll send them some cash.

    P.
    "Ever tried. Ever failed. No matter. Try again. Fail again. Fail better."

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