New Government - Solidarity Bonds

hammer

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I recommend that the Solidarity Bond created by Fianna FAIL be immediately changed.

Offer annual interest rate of 4%, and exempt interest from DIRT.

Restrict drawdown of IMF/EU loan as long as we can until maybe bond rates move in our favour :)

If the wealth is there the public will invest in such a bond.

Let the recovery begin without Fianna FAIL :)
 


atlantic

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problem is if people want to cash in the bond at maturity will the government ,have the mula, by the looks of things they would default faster on the Irish people than casino bank bond holders.Irish people would not trust the gov to pay them.
I recommend that the Solidarity Bond created by Fianna FAIL be immediately changed.

Offer annual interest rate of 4%, and exempt interest from DIRT.

Restrict drawdown of IMF/EU loan as long as we can until maybe bond rates move in our favour :)

If the wealth is there the public will invest in such a bond.

Let the recovery begin without Fianna FAIL :)
 

jake76

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We should use the money collected to buy Irish 10 year bonds on the secondary market.
 

hammer

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4% v 5.83% could potentially save us €1,555,500,000 per annum, every year until 2020 at the very least.

Lets get the recovery going.
 

j26

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I was thinking this a couple of days ago.

Open a series of solidarity bonds of varying durations (5-10 years) ranging from 3.5 to 4.5%. Hit the diaspora - if you claim to be Irish you will put your money where your mouth is. Do a "Your country needs you" sort of campaign. Try to get back some of the money that has flown the country.

Let the banks fail, reducing the overall debt level. New banks will fill the hole as retail operations are still going to be profitable.

Get the budget deficit under control asap. Don't forget - 8bn of the adjustment needed in the 4 year plan is for interest.

Use the NPRF, and the bonds to keep away from the markets for 3-4 years if possible.

In 3-4 years, we have a sustainable level of debt, a stable banking sector, a balanced budget, a competitive economy and are positioned to make good progress.
 

Cassandra Syndrome

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Let people buy bonds in company startups or existing companies with a 5%+ return per year. F the state.
 

feargach

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Do you trust them to ever pay?
Who do you mean by "them"?

If the first payment date is set at any point subsequent to January 2011 (less than 8 weeks away) then it's not at all clear who you expect "them" to be.

Will you be voting?

Will those whom you elect constitute "them"?
 

feargach

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problem is if people want to cash in the bond at maturity will the government ,have the mula, by the looks of things they would default faster on the Irish people than casino bank bond holders.Irish people would not trust the gov to pay them.
Who is "they"?

The current government will be history and consigned to a very small rump opposition 9 weeks from now.

Their replacements will be chosen by you.

Are you saying you intend to choose candidates who want to default on you?

Also, can you please name the Judge who would refuse to grant an injunction preventing the state from defaulting on Irish bondholders?

I do not believe that any such judge exists in Ireland. I assert that there is no judge that would refuse to grant such an injunction, and that there is no appeals judge who would lift the injunction. Who are the judges that you believe would allow such a thing to happen?
 

Insole

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Who do you mean by "them"?

If the first payment date is set at any point subsequent to January 2011 (less than 8 weeks away) then it's not at all clear who you expect "them" to be.

Will you be voting?

Will those whom you elect constitute "them"?
It really doesn't matter who "them" is. The State, i.e. our government has lost the confidence of the markets and has been sold a horrendous deal by our frendly European partners.

So strapped for cash and entering a downward spiral for funding. not created by shortage of people commiting suicide or too many people "talking down" the economy but by sheer vote buying and bad management.

The markets realise it, I'll follow them.

I see 4% as a bad return on risking my money with the Irish state.

Not buying them.... Sorry!
 

locke

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Jusging by this, we should be issuing two classes of National Solidairty Bonds that become due in 2015 and 2017 respectively

 

Cooperate for freedom

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Advertising to the diaspora in foreign countries would meet with criticism from their "new" homes as it would see a flight of capital.

We could also then see retaliation from those same countries.

Not ruling the concept out though as it is much needed.

My solution is for everyone to buy a prize bond for Christmas!
 

feargach

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Lots of unclear talk on this thread about the dastardly deeds to be done by "them" in relation to defaulting on obligations to Irish residents.

But who is this "them" of which you speak in such non-specific terms?

The dead men walking of the current government are utterly irrelevant to the payment of new bonds. They will long have been thrown out of office by the time the repayment date comes along.

Spit it out, man. Say who you mean!
 

kells2dublin

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I see this as being a very positive move.
I , for one, will invest whatever little savings I have for a 4% return.
A lot of Irish people would feel the same.
If it was done honestly and openly, and explained by an independent financial expert, who has no family in government or no axe to grind, it would succeed.
This should be organised the day after the election of a new goivernment.
 

feargach

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Deafening silence from those who've been wittering on about the mysterious "them" who are going to default on us.
 

Riadach

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Why can't you broaden the range of the interest rates? I know very few patriotic individuals would take a bond at 1%, but there may be some. They are after all, solidarity bonds.
 

Cooperate for freedom

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I see this as being a very positive move.
I , for one, will invest whatever little savings I have for a 4% return.
A lot of Irish people would feel the same.
If it was done honestly and openly, and explained by an independent financial expert, who has no family in government or no axe to grind, it would succeed.
This should be organised the day after the election of a new goivernment.
As noble as it might seem that you would do that, i would iagine you would be removing your savings from an Irish bank (perhaps not). If this is the case the bank will be worse off and on a grand scale will need further recapitalisation by guess who - you and me the taxpayer!!

We need new money into the country as we cannot print our own.

That's why i am advocating prize bonds. Particularly good if sending relatives abroad a gift!
 

Cooperate for freedom

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Why can't you broaden the range of the interest rates? I know very few patriotic individuals would take a bond at 1%, but there may be some. They are after all, solidarity bonds.
Prize bonds offer no guaranteed return and most people never win. Yippee!:D
 

Oppenheimer

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Advertising to the diaspora in foreign countries would meet with criticism from their "new" homes as it would see a flight of capital.

We could also then see retaliation from those same countries.

Not ruling the concept out though as it is much needed.

My solution is for everyone to buy a prize bond for Christmas!
I don't believe this to be a factor of concern - we already do a great job in extracting FDI from those countries and the amounts, per capita from individuals in the diaspora would probably not amount to a significant ration of the outward investment of the countries they live in.

The National Solidarity Bond is not differentiated enough from other investment products such that it gives a good payback so raising the return to 4% would be a significant differentiator. Also having flexible get out periods would differentiate it. Currently I think the NSB returns 3.53% over the ten years.

I think this is a very good idea and I do believe that tapping the diaspora is a great way of getting it going. In fact we could make a target of a certain amount for the diaspora and if its hit the reward would be to give them a vote!
 


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