Ireland has shown itself to be once again model students in the EU. As we've seen in previous posts, you can't understand the euro monetary system if you don't get that it's got nothing to do with a good or even a bad economic model.
At the EU everything is about politics. The system runs on the Franco-German rivalry. The incentive for the rest of the 18 euro countries is the about geopolitical posturing just the same. For Ireland it's about being saved from Britain, of being independent of the British.
Even if that means becoming the appendage of Germany and the EU.
So the Irish can wallow in their surplus.
"For two days last week, politicians, civil society activists and business leaders gathered at Dublin Castle to discuss something rare in austerity-ravaged Ireland — how to spend an extra €1.5bn."
"Billed as a “national economic dialogue”, the event was open to the public and webcast live. The government planned it as “an open and inclusive exchange on the competing economic and social priorities” Ireland faces. But it was also a forum for lobbyists and interest groups from every section of the economy to lay their demands before a political establishment preparing for the next election and a public not entirely convinced that the recovery is real."
"The government says it has between €1.2bn and €1.5bn to distribute in the next budget. It is promising an even split between tax cuts and increased public spending. However, the bias among interest groups — with the exception of Ibec, the employers’ lobby — is towards spending. “It’s time to start spending again — all of that money should go towards investment,” says Sean Healy of Social Justice Ireland."
"Michael Noonan, the Irish finance minister, says he intends to produce a budget for next year — due to be published in October — that is “economically smart and socially just”. After years of austerity budgets, the generally centrist coalition government of prime minister Enda Kenny is the first since 2007 to find itself with a bit of spare cash to disperse."
At the EU everything is about politics. The system runs on the Franco-German rivalry. The incentive for the rest of the 18 euro countries is the about geopolitical posturing just the same. For Ireland it's about being saved from Britain, of being independent of the British.
Even if that means becoming the appendage of Germany and the EU.
So the Irish can wallow in their surplus.
"For two days last week, politicians, civil society activists and business leaders gathered at Dublin Castle to discuss something rare in austerity-ravaged Ireland — how to spend an extra €1.5bn."
"Billed as a “national economic dialogue”, the event was open to the public and webcast live. The government planned it as “an open and inclusive exchange on the competing economic and social priorities” Ireland faces. But it was also a forum for lobbyists and interest groups from every section of the economy to lay their demands before a political establishment preparing for the next election and a public not entirely convinced that the recovery is real."
"The government says it has between €1.2bn and €1.5bn to distribute in the next budget. It is promising an even split between tax cuts and increased public spending. However, the bias among interest groups — with the exception of Ibec, the employers’ lobby — is towards spending. “It’s time to start spending again — all of that money should go towards investment,” says Sean Healy of Social Justice Ireland."
"Michael Noonan, the Irish finance minister, says he intends to produce a budget for next year — due to be published in October — that is “economically smart and socially just”. After years of austerity budgets, the generally centrist coalition government of prime minister Enda Kenny is the first since 2007 to find itself with a bit of spare cash to disperse."
http://www.ft.com/cms/s/0/ea6fd7fc-2f9c-11e5-8873-775ba7c2ea3d.html#ixzz3gez38d8d
Yeah, just don't get too comfortable with your 'fiscal space.' Better check with Germany first.
"Yet amid the battle for extra resources, warnings from the Irish fiscal watchdog to maintain a focus on debt and deficit reduction, and EU fiscal rules that place severe curbs on spending, ministers face a tricky few months ahead."
"As Bill Mitchell points out the Original Sin is continued in the budget constraint itself, to not to understand that with fiat money there is no more reason to work so hard for 'fiscal space.'
Yeah, just don't get too comfortable with your 'fiscal space.' Better check with Germany first.
"Yet amid the battle for extra resources, warnings from the Irish fiscal watchdog to maintain a focus on debt and deficit reduction, and EU fiscal rules that place severe curbs on spending, ministers face a tricky few months ahead."
"As Bill Mitchell points out the Original Sin is continued in the budget constraint itself, to not to understand that with fiat money there is no more reason to work so hard for 'fiscal space.'
http://lastmenandovermen.blogspot.com/2015/07/bill-mitchell-show-irony-of-when-left.html
So after all these years of needless fiscal ascetisim, Ireland may still not be allowed to spend its own money.
"Much of Irish society has seen no new spending for several years. The effects can been seen today in a creaking health service, an education system starved of capital investment and poor childcare services and public transport."
“We’re absolutely at crisis point in terms of lack of capital investment,” says Fergal O’Brien, chief economist at Ibec.
"Alice-Mary Higgins of the National Women’s Council of Ireland added: “There is a huge job to repair the damage done by austerity in the public services.”
I wonder if Ms. Higgins checked with Angela Merkel before saying such a thing. Sure is a good thing you've escaped British domination.
So after all these years of needless fiscal ascetisim, Ireland may still not be allowed to spend its own money.
"Much of Irish society has seen no new spending for several years. The effects can been seen today in a creaking health service, an education system starved of capital investment and poor childcare services and public transport."
“We’re absolutely at crisis point in terms of lack of capital investment,” says Fergal O’Brien, chief economist at Ibec.
"Alice-Mary Higgins of the National Women’s Council of Ireland added: “There is a huge job to repair the damage done by austerity in the public services.”
I wonder if Ms. Higgins checked with Angela Merkel before saying such a thing. Sure is a good thing you've escaped British domination.
It's is IS NOT. Its is what you mean. I get it though, you're a redneck pretending to be a liberal red-state hater. Nice shtick dude.
ReplyDeleteRay, let me just say you have a refreshing perspective and you are always welcome here.
ReplyDeleteYou take a lot of crap at Money Illusion-as do I-but I like Sumner alright just take him for what he is.
He's the Rush Limbaugh of monetary economics. Remember what Al Franken said of the Rush Limbaugh show: it's where you get penalized for knowing things.
I appreciate you for no other reason that you unlike most people I run into seem to have an actual sense of irony.
ReplyDeleteMost don't whether they are Right, Center, Left, or Other.
Ray my man, I don't know how often you visit your own blog these days-I can't but notice you haven't exactly been prolific-but I left you a couple of comments. Figured I could show you thanks for stopping by.
ReplyDeleteOh, the ether swallowed my post. Well, in summary, I'll visit your blog from time to time too.
ReplyDeleteOk when then let me transfer my comments back for your consumption today:
ReplyDeleteRay since you were kind enough to stop by at my place I figured I'd respond in kind.
Just 2 blogs in 7 years-prolific, huh? LOL. You'd probably have more visitors if you wrote more often.
On the other hand maybe that's not what you're after.
In reading this I feel like you make a very controversial claim-almost no one believes a CB has no effect whatsoever-as opposed to someone like Major Freedom who thinks all the effects are bad.
I'm not sure I follow the steps at how you arrive at this view. However, more importantly I feel there is something missing: let's say you're right?
So what? What changes if we believe the Fed has no effect on anything? If there is no effect why even criticize it at all?
Major and other hardcore Rothbardians like him think it just destroys price signals. But if it has no effect what do you have left to criticize?"
You see, for me that's always the real game. So what? If X is so then so what? So if the Fed has no effect on the economy, positive or negative, then so what?
How does knowing this change our lives?
Like with Sumner's NGDPLT futures game there's clearly some implications whether you like them or not. what are your implications?