Economic Crisis Blogburst 5: Outsourcing the nation’s debt?

– Okay, let’s start off with Gavin Sheridan on The Cycle of Market Emotions… Some of which you can pick up in the letters page of the Irish Times this morning…

– And the Independent reports the bail out could come to as much as €100 Billion

– Phillip Lane at worries that (with a mild economic recovery in the offing) the price of back pay may be a further crippling of growth in the Irish economy:

Given the importance of a pro-growth plan and the downside risks to the export sector of varying this tax rate, it does not seem wise for the international debate to focus on this topic.

– Former Taoiseach and European Union ambassador to Washington John Bruton noted that

…corporation tax was the one tax that had exceeded Department of Finance projections for the first 10 months of the year, delivering €300 million more to the State’s coffers “in bad times” than was expected.

– Pat Cox, former President of the European Parliament:

“I think we are wrong to maintain a pretence at the highest level of our political system that we have a choice: this is an illusion of choice.”

– Niall Fitzgerald reflects a frustrated line of thinking amongst many of wealthy businessmen in Dublin:

It is not just Ireland’s economy that has been damaged, he says, but its reputation — and that may be even more harmful in the long run. He strikes a surprisingly populist note in saying that one big reason for the loss of Ireland’s reputation as a good place to do business, is the fact that nobody seems to have been held accountable for the financial disaster.

– Martina Devlin on Fianna Fail, Humpty Dumpty and the slipperiness of Irish political language

– And Pat Rabbitt rips into Pat Carey (from about 8 minutes) over the Government’s shambling over the last week on RTE’s flagship Prime Time programme…

– For example on the sovereignty issue, having talked it up for his own political reasons, the Taoiseach is now rather pointedly talking down the issue of sovereignty

– As Ben Archbald observes, why should anyone be surprised:

…the next politico or pundit commenting on a possible loss of Irish sovereignty should really consult the vast swathes of recent dependence history; there is nothing amiss or new about Ireland outsourcing sovereignty when it feels it needs to.

– Guido rather glad-handedly terms it End of an Eire…

– Donal Donovan puts the sovereignty issue in more a precise context:

…arguably (as was admitted a couple of days ago by Minister for Finance Brian Lenihan) any country that has left itself exposed to such an extent to foreign lenders for financing day-to-day operations (and that is before the banks’ problems are brought into the equation) has already ceded considerable sovereignty to others – be they rating agencies, bondholders or institutions such as the EU.

– And as the bank guarantee scheme is quietly given another six months term, Bill H0bbs notes that Ireland’s Credit Unions will also have to be bailed out too

And whilst some have worried about the Oirishry of this clip from Newsnight, Paul Mason doesn’t miss the irony of George Osborne’s lauding of Ireland’s low tax economy in 2006 and cowping of the Irish banking system because of (p!ss) poor regulatory control:

– Geeko’s World with yesterday’s scary number... 64% is the proportion of GNP being borrowed by Irish ‘banks’ which “is probably a bit like going down to the pawn shop to borrow over half your annual income in order to buy this week’s groceries down at Dunnes.”

– Rob Kitchin with some helpful advice for foreign journalists who he says are currently being told that the ghost estates are something of a media fiction:

If anyone else approaches the Irish Times and the IT doesn’t know where to point them – either direct them to the maps on the DEHLG website or refer them to, but don’t pretend the 2,846 unfinished estates don’t exist or that the problems relating to them are trivial.

– P O’Neill has an interesting admission from Dominique Strauss-Kahn, to the extent that the US is behaving like Ireland has (ie, spending other people’s money), but is too big to get called on it by the IMF, or anyone else…

– And finally, advice for depositors of what the Government’s bank guarantee means for them… via Stephen

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