Markets in everything but is there a core?

Ireland would need to get a significant reduction in its debt burden in order to get any referendum on new European budgetary rules passed, Minister of State for Finance Brian Hayes has said.

“The idea that we could have a referendum without that agreement, on a substantial re-arranging of our debt, wouldn’t fly,” Mr Hayes said in an interview with the Sunday Business Post .

“We would have to have that in place before we put the question (to the people) and that’s beginning to be understood at an EU level, which puts us in a stronger position,” he said.

Story here, via Economistmeg.


Nicely played, Ireland.

Amusing to think that when one member state simply refuses to participate, contumely is heaped on its head. But when Ireland actually holds a loaded gun to the head of Brussels, I doubt we'll see the same reaction.

This is why the Euro must collapse.
Every country wants the rules to apply to others, and has good reaons why they themselves should be the exception.

No, this is about trading acceptance of those rules for something else, it's nothing to do with gettting an exception from the rules.

I wonder what the credit default swaps on German banks are signalling.

Well, duh. What did the Eucrats think would happen when they put a trough in front of the PIIGS?

Anyone who wants to get a real sense of what is happening with regard Ireland's position in Europe should read Professor Karl Whelan's posts on the blog. Its far more nuanced than a simple reading of what that particular minister is saying.

Frank Barry's recent article also gives a good sense of the real issues at stake

TC : What's your take on Hitchens ?

Hitchens was a commie AND a neocon. How could any one person NOT be appalled by his beliefs? He was a decent writer, but he had only one genre: the personal attack. That's all I have to say about the man.

Commie and then later a neocon, you mean? It might be hard to be both at the same time.

He continued praising Trotsky while boosting neocon foreign policy.

The debtors blackmail the creditors as it was to be expected.

Well, Sam, you may be very serious but you aren't very well informed. There are two types of bond offerings, secured and unsecured. Unsecured bonds offer a higher yield because in the case of bankruptcy the holders of unsecured bonds are out of any claims on the bank. The bank's assets are sold off and whatever amount is raised is then divided amongst the holders of the secured bonds.
After the Irish banks hit the wall, the Irish government said that the Irish taxpayers should not be on the hook for the unsecured bonds, and the IMF agreed with them. The EU, however, said Nyet, and the rule of law went out the window. Do you think that is fair?

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