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Dermot Desmond: Inflation Or Default Will Do The Trick For Ireland


YouKnowWhatIMeanLike

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I'd say Dermot is a little out of his depth here but he mentions the two nuclear options that will solve Ireland's public debt problem. I don't know what gives him the confidence to advise us on how to squander our public money but the two options are guaranteed to solve one side of the debt equation. Is a sovereign default back in the cards and an exit from the Eurozone with controlled (hyper)inflation?
 


DuineEile

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So now Dermot Desmond agrees with Sinn Féin. Cue all the right wing hoors claiming they thought this was a good idea all along.



Eurasia: always at war with Oceania, or is it Eastasia, I forget? Doublethink is so hard these days.



D
 

commonman

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I think any thing in worth a try, we are going no where the way we are going. we will be like japan was for 20 years.
 

Andycap

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I'd say Dermot is a little out of his depth here but he mentions the two nuclear options that will solve Ireland's public debt problem. I don't know what gives him the confidence to advise us on how to squander our public money but the two options are guaranteed to solve one side of the debt equation. Is a sovereign default back in the cards and an exit from the Eurozone with controlled (hyper)inflation?
Why is he out of his depth?

Why should he not have an opinion on how our public money is spent?

"Exit from the Eurozone"? - that's not mentioned anywhere in the article.

He does not advocate hyper inflation either. He, rightly, states moderate inflation would reduce our debt ratios.

Another sh1te OP.
 

eoghanacht

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How is a mutli millionaire adventure capitalist out of his depth?

Is it because Mr Desmond sugggest defaulting, which as we all know is a loony left idea that would cause the sky to fall un top of us.
 
M

MrFunkyZombaloo

Going on...oh for almost 5 years now I've been saying it (default). Mr Desmond is late to the party but that's always better than never.
 

thegregster

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thegregster

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Going on...oh for almost 5 years now I've been saying it (default). Mr Desmond is late to the party but that's always better than never.
The best option for the eurozone is an organized default for those who need it.
 

Sister Mercedes

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The best option for the eurozone is an organized default for those who need it.
The best option for the Eurozone is for Germany to leave it. The Euro would then sharply depreciate against other currencies, and the remaining Eurozone countries would be competitive again on international export markets, without any need for default.
 

YouKnowWhatIMeanLike

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Why is he out of his depth?

Why should he not have an opinion on how our public money is spent?
Dermot is a professional gambler, he knows little about public finances and budgeting. I am sure he knows how to poker.

"Exit from the Eurozone"? - that's not mentioned anywhere in the article.

He does not advocate hyper inflation either. He, rightly, states moderate inflation would reduce our debt ratios.
The type of inflation Dermot talks about is not going to happen with Germany in the Eurozone. Either Ireland or Germany will have to leave the Eurozone to see levels of inflation that would ameliorate Ireland's unsustainable public debt mountain expediently.
 

eoghanacht

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Dermots poker face would have come in handy on the night of the bank gaurantee
 

thegregster

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The best option for the Eurozone is for Germany to leave it. The Euro would then sharply depreciate against other currencies, and the remaining Eurozone countries would be competitive again on international export markets, without any need for default.
Isnt that effectively the same thing? ie debt level fall as the currency weakens which is the same as a default? Their are many advantages and disadvantages of German leaving the Eurozone to be fair.
 

YouKnowWhatIMeanLike

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The best option for the Eurozone is for Germany to leave it. The Euro would then sharply depreciate against other currencies, and the remaining Eurozone countries would be competitive again on international export markets, without any need for default.
exactly but for how long before the remaining fragment will explode into a supernova?
 

Telemachus

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How is a mutli millionaire adventure capitalist out of his depth?

Is it because Mr Desmond sugggest defaulting, which as we all know is a loony left idea that would cause the sky to fall un top of us.
You know people from all spectrums have been wishing for default for sometime.
 

Sister Mercedes

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Isnt that effectively the same thing? ie debt level fall as the currency weakens which is the same as a default? Their are many advantages and disadvantages of German leaving the Eurozone to be fair.

If Germany leaves, and the Euro plunges, we would have the same debt in Euro as we do now. Except that our economy would be much more competitive. No need for default.

But if Ireland leaves the Euro, the Punt Nua would plunge against the Euro, so our Euro denominated Debt would be unsustainable and we'd have to default.
 

DuineEile

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You know people from all spectrums have been wishing for default for sometime.
Yeah, right.


And so it begins.


Labour, Fianna Fáil and Fine Gael doing a U turn and telling us how we misunderstood when they called Sinn Féin economic illiterates for advocating default before the last election.


D
 

oggy

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This depressing miserable government are the same people who were the miserable depressing opposition before GE 2011. Really they are a plague on the country nothing will turnaround until they are out of sight.

The economy is like a bad dose of sciatica that only time eases and then cures. Inflation and/or default have never worked and will not work now. Time and patience are the answer whether we like it or not, of course getting rid of this shower would go a long way
 

opinions

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A program of money printing or QE may also tick the box. Its been rumored many times that after the fascists in Germany hold their election Mario will press the print button. Why print? Because all the banks are bust. The only reason that banks are not reprocessing is not because of some strange new found empathy, but if they 'marked to market' all the trash they hold as collateral they would quickly become insolvent.

He has the IMF on his side as their opinion is that a wide scale Eurozone stimulus plan is the way to go. This will of course lead to some welcome inflation, and not the hyper kind the krauts fear. It will unfortunately also lead to an increase in interest rates, so it's a double edged sword.

Still it's no good if we have our books balanced if the EU countries cannot afford to buy our exports. I always find it amazing that even though we only account for less than 1% of EU GDP some people think we should have a large say in European finance.

We are merely a candle blowing in the wind, so goodbye austerity and welcome stimulus and inflation. I just hope that Mario keeps his finger on that button.
 

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