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Japan has a ratio of public debt nearly twice what Ireland does. The premium is based on a premium to prime european (think german) debt. Where do you get your... 'information' ?
at what point do you think ireland is supposed to pay a better rate than it is now? they made some cuts but they arent out of the woods. in fact, they will likely fall along with the rest of the PIIGS, then the rest of europe. id expect german debt will have to take a hit, its really not as safe as the current rate reflects.
Many economists agree with Krugman that MORE government investment would have been needed to turn things around faster here.
I would add that many respectable economists agree with Krugman.
IMHO, the problem with these guys is their motto that the Economy’s health is paramount—society’s well being comes 2nd. Their convincing logic is a healthy Economy means a healthy populace. However, this logic doesn’t work unless you raise taxes & pay down some deficits during the good times. For whatever reason, NOBODY wants to pay down some deficits during the good times!
Since the Corporations’ are in the driver’s seat, via oversupply of workers & low aggregate demand, is it any wonder why they’re sitting on cash/waiting for the Gov’t to supply ALL the investment for jobs?
I just hope our Gov’t/US citizen can hold the line & compel the Corporations to share/cooperate in the cost for investing in job creation. “Austerity” isn’t painless, but the Country(s) need to break free from this exploitive situation we’re in IMHO.
at what point do you think ireland is supposed to pay a better rate than it is now? they made some cuts but they arent out of the woods. in fact, they will likely fall along with the rest of the PIIGS, then the rest of europe. id expect german debt will have to take a hit, its really not as safe as the current rate reflects.
Where is your source? What information are you using?
Where is your source? What information are you using?
you would have to be very dim to not see that i was giving my opinion and simply basing it on information anyone can find in a few seconds.
but your original point is silly anyway. ireland bailed out its banks and in return needed an EU/IMF bailout. that hurts your ability to borrow. this all happened relatively recently and you seem to think that their budget improvements should cause an immediate and severe reduction in their borrowing rates. thats being very naive. but they have seen a reduction in their rates over the past 1-1.5 years. so you are basically wrong anyway. its just kind of funny how you choose to have no patience because you dont seem to want to believe that a sound budget will help resolve the problems. i just looked back, they were bailed out in november of 2010. thats about 1.5 years ago.
you would have to be very dim to not see that i was giving my opinion and simply basing it on information anyone can find in a few seconds.
but your original point is silly anyway. ireland bailed out its banks and in return needed an EU/IMF bailout. that hurts your ability to borrow. this all happened relatively recently and you seem to think that their budget improvements should cause an immediate and severe reduction in their borrowing rates. thats being very naive. but they have seen a reduction in their rates over the past 1-1.5 years. so you are basically wrong anyway. its just kind of funny how you choose to have no patience because you dont seem to want to believe that a sound budget will help resolve the problems. i just looked back, they were bailed out in november of 2010. thats about 1.5 years ago.
It's interesting that you choose to call names and put words in my mouth. You also don't give any sources for your 'common' information. That reeks of desperation.
So, back to what I actually said, when can Ireland expect to see a payoff from 'confidence'?
It's interesting that you choose to call names and put words in my mouth. You also don't give any sources for your 'common' information. That reeks of desperation.
So, back to what I actually said, when can Ireland expect to see a payoff from 'confidence'?
when they have earned it. like i said, they were bailed out by the IMF/EU 1.5 years ago, your point is weak.
oh but im sure they would have been so much better off if they had denied the bailout along with budget cutting required for it and instead printed more money and increased spending. they would be so much better off.
when they have earned it. like i said, they were bailed out by the IMF/EU 1.5 years ago, your point is weak.
oh but im sure they would have been so much better off if they had denied the bailout along with budget cutting required for it and instead printed more money and increased spending. they would be so much better off.
It's not clear if you're using sarcasm. Also, when will the countries be rewarded? 6 months? 18? 5 years? 15? What's the timeframe?
It's not clear if you're using sarcasm. Also, when will the countries be rewarded? 6 months? 18? 5 years? 15? What's the timeframe?
nobody knows the answer to that question and nobody even knows whats going to happen to anyone in the future. france just got rid of sarkozy and that caused global markets to tank this past week. none of those countries are operating in a vacuum and nobody knows when countries will be "rewarded" for their "better" behavior. we can only take the information out there and give our best guesses. but the notion that ireland was bailed out 1.5 years ago and you are complaining that they still have to borrow at a higher rate than other euro countries seems a bit ridiculous to me. if you filed bankruptcy how long do you suppose you should be paying higher interest rates on loans for?
the logic that increasing government spending would help the situation seems insane to me. these countries dont want austerity but then what happens when you dont get the loan because you cant control your spending? what will the public employees do when the government cant make a payroll?
nobody knows the answer to that question and nobody even knows whats going to happen to anyone in the future. france just got rid of sarkozy and that caused global markets to tank this past week. none of those countries are operating in a vacuum and nobody knows when countries will be "rewarded" for their "better" behavior. we can only take the information out there and give our best guesses. but the notion that ireland was bailed out 1.5 years ago and you are complaining that they still have to borrow at a higher rate than other euro countries seems a bit ridiculous to me. if you filed bankruptcy how long do you suppose you should be paying higher interest rates on loans for?
the logic that increasing government spending would help the situation seems insane to me. these countries dont want austerity but then what happens when you dont get the loan because you cant control your spending? what will the public employees do when the government cant make a payroll?
If nobody knows the answer, why base policy on the confidence fairy? Sure, a government can wait out the downturn, leaving millions of people under/un-employed. That does real long term damage to the economy, country & its people.
This is not an inflationary downturn, this is a deflationary downturn that needs large stimulus to jump start it. Likening international finance & economic policy to a household budget reveals exactly where your simpled minded ideas are coming from.
If nobody knows the answer, why base policy on the confidence fairy? Sure, a government can wait out the downturn, leaving millions of people under/un-employed. That does real long term damage to the economy, country & its people.
This is not an inflationary downturn, this is a deflationary downturn that needs large stimulus to jump start it. Likening international finance & economic policy to a household budget reveals exactly where your simpled minded ideas are coming from.
you dont have a choice. nobody knows any answers for exactly how to solve the problem. so you have to weigh the information and make the best decision you can. but you dont have any guarantees no matter what you do.
no, "large stimulus" is not needed. that will just increase debt and have no net benefit. once the government spending stops, you lose any benefit and now you are sitting on an even bigger pile of debt.
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No pain, no gain!
