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.
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.Originally Posted by David McWilliams (paraphrased)
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.