Via Irish Central (New York Times calls for Ireland to renegotiate debt
Hard-hitting editorial attacks German position) some economic illiterates wrote this New York Times editorial – Now Ireland:
Fianna Fail pledged more than the government could afford to rescue its banker friends. The bankers emerged nearly whole. Ireland emerged nearly broken…The European Union provided bailout money last fall, but with austerity conditions so strict and interest rates so high that Ireland has been left with no realistic prospects for resuming growth and paying off its debts.
Too much austerity too soon can trap an economy in a vicious downward spiral of decline. (Congressional Republicans please take note.) Shrinking economies cannot shrink their ratios of debt to output. Only recovery programs premised on renewed growth can do that.
Ireland’s debts are so large, and its interest rates so high, that it now needs 5 percent annual growth just to stay afloat. Because of the harsh austerity budgets Europe has demanded, it is generating no growth at all…
Creditor nations like Germany insist there can be no renegotiation. They need to think again.
Read more. (Maybe someone can fax this to Enda Kenny at whatever undisclosed location he’s been at since… last November?)