My Photo

Blog powered by Typepad


« The Great Fiscal Shell Game. The Recession Diaries - April 22nd | Main | It's Employment, Stupid. The Recession Diaries - May 10th »

April 28, 2010




Does this post not add up to the following:

Cut spending ( the argument that won the day) = higher bond spreads

Maintain/ increase spending= higher bond spreads too.

Like you said, the markets know so, it follows, if we had increased borrowing they would know even more and be even more skeptical of our ability to service the debt.

In sum, we were damned if we did and damned if we didn't as it turns out?

As the most indebted country in Europe ( is this up for debate?) it is only a matter of time before Ireland is in the firing line.


Pat Donnelly

Very good!:-)

TPTB are in control in Ireland but the puppets and muppets are spinning like mad, to pretend they are in charge. The goal is to devalue the euro. The lower the better. It also enables TPTB to make a buck! Get used to being serfs again. Good thing freedom is a state of mind cos prices are going to rise !


"Why didn’t cutting spending work?"

What makes you think it didn't? If markets react badly to Ireland's current level of debt, what kind of reaction do you think that there'd be with a higher one? The cost of borrowing can go higher, and the rating attached to our bonds can go lower. The fact that cuts were made (and the appearance of "dealing with it" was given) could well mean that the cost of borrowing is less than what it would be.

The comments to this entry are closed.