In this 4 minute video Prof Kevin O’Rourke & Constantin Gurdgiev explain what happens after we separate the amount of debt the Country owes, as distinct from the debts of the privately owed Irish banks.
[youtube]http://www.youtube.com/watch?v=6YVPW9W-f8A[/youtube]
Eamonn
In reasonably succinct terms but in the context of restrictions imposed by the economic crisis what are your policy positions and ideas on (i) stimulating growth in the economy; (ii) an appropriate social model in Ireland ; (iii) Ireland in Europe? and (iv) one meaningful policy from another party you would support and why?
Thanks.
Hi Ken,
Sorry for the inordinate delay in replying to your query but to answer it properly, I would need to write a book.
Please explain both the pros AND CONS of default policy. It seems sensible but without explaining both sides then it sounds like the typical sugar coated crap we get from the mainstream parties that have failed us so badly to date. Give us the truth – the whole truth and your argument will be strengthened and respect for your positions increased. Both here and on TV and national media.
The video which should answer your questions. Bottom line is that the markets WILL lend to us for the next four years if and when we separate the Sovereign debt from the debt of the privately owned banks. The CONS of not doing sop will be the total insolvency of the State within one year.
Does that mean you propose that new banks are established to conduct day to day banking, solvent banks?
Thats exactly what I would think should happen. With a reduced Sovereign debt (i.e. by removing the bank debt) the state will be in a position to ensure that the bank can be adequately capitalised.
Ok it makes sense to set up a bank and specialised institutions that can target business sectors and get cash flowing again. The debt forgiveness strategy needs to be thought through in a bit more detail but given that the bank’s have received so much of our money they should start to write off their debts and sell the assets under their ownshersip to open up the market. They have after all provisioned against those losses at this stage and should be allowed to wait to get an uplift while we suffer.
The Public Sector is another massive cost and the Labour Party’s close connection with the Union means that they don’t have the appeitie to reform even from the “top down” as per one of your own articles. Fianna Fail have set up so many quangos that need to be demolished and not replaced! Do you and like minded independents in New Vision have the appetite to restructure the public sector and is that why people should make their vote count by reducing the Labour Party and Sinn Fein influence in the next Dail and voting for you? Long winded question but still interested in the answer!!
At last, someone is getting to the nub of what I want to know amidst all the burning bondholder rhetoric. I look forward to digesting this.
Hope the campaign is going well.
“Bad officials are elected by good citizens who do not vote. ”
George Jean Nathan
J Deely
What happens to my savings and my salary when we shut down the banks as suggested?
Your savings are guaranteed by the State and your salary will be paid, as long as we do not ‘bail out’ the banks and we agree to repay our sovereign debt, in full.
But the state can’t garuntee that, it’s illegal – in any juristiction from here to Zimbabwe. Anyway, state can’t afford to shore up all private savers and those with the few quid from salaries in the middle of any given month thats a massive amount of money – more than bailout – and meet legal reqirements – recievership etc – stricit corporate government laws unless we start to act like a complete renegade kid on the block and spook everyone invested in Ireland. We could certainly burn the bondholders – that would be legal albeit against our interests. We’d find ourselves alone in the world (and we have a party for that or am I missing something? Eamonn, whats new visions real policy that isn’t just levergaing the mistakes of the past – I’m genuinely floating so need to hear a positive realistic New Vision and that would be brilliant. Have you a manifeto site or…?
Ciaran,
I am up to my eyes at the moment and just cannot make the time to answer every question in detail. If you trust me, my knowledge & business experiance please vote for me if not, don’t.
Eamonn