Does anybody have a reasonable answer (and condensed) as to why a Government cant just print bucks to pay off its Countries bebt ? -- now we have a common currency I find the de-valuing issue hard to grasp.
Fiscal poser !
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06-09-10, 12:51GordonGayBennettFiscal poser !
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06-09-10, 12:58scotusIreland has ceded a lot of the powers that the Central Bank had to Brussels, so I don't think we would be allowed. AFAIK we have to lie within given parameters to maintain our membership.Quote:
Originally Posted by GordonGayBennett
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06-09-10, 13:05scotus
We could leave the Euro, and then print more money.
This would lead to inflation, and that would lead to devaluation of the punt.
And, hey presto, our foreign debt would then be reduced -
06-09-10, 13:13WestsidexAnd we will give away more power. The gov dont want to stop this because it will lead to a single EU gov. I hope i am dead and buried when this happens as it will suck donkey balls.Quote:
Originally Posted by scotus
Going back to your post, i still cant understand why in gods name give away monetary policy to the ECB? Its like you get paid for working and give me your money and i will tell you how to spend it and of course i will tell you how to spend it in a way that suits me.
Its just not fuckin good enough at this stage. We are coming up to the next budget and still the public service have taken no cuts and continue to hold up economic recovery by not only not doing their bit but continuing to waste resources and be under productive big time. Suicides have risen by 45% and marriages under strain while these dirty selfish bastards of politicians sit back, pay themselves big time, still taking huge expenses and being downright arrogant with the private sector while shitting themselves with the public sector. Add to this that the ppl of this country have being brainwashed into staying quiet and its easy to see how this so called recession is still here.
jaysus,
Westside.
PS bit of a semi off topic rant here. -
06-09-10, 13:17WestsidexI actually believe that most of these so called big companies and investors can absorb most of their losses and stop charging ppl more. Whats wrong is alot of companies are maintaining profits of boom times in recession times.Quote:
Originally Posted by GordonGayBennett
Westside. -
06-09-10, 15:04samladThe Germans did this after the first world war to pay for all the repairations, as outlined in the Treaty of Versailles. Unfortunately this lead to mass inflation, and the Germany economy went into meltdown, causing prices to shoot out of control (a loaf of bread cost the equivelant to something like £1,000,000!). People had to carry money in wheelbarrows as inflation got so out of control.Quote:
Originally Posted by GordonGayBennett
In a nut shell, it would ruin the economy. -
06-09-10, 15:05hd7055
Couple of issues here:
(i) the problem with printing money is that it leads to inflation - with more money in circulation prices increase, the exchange rate decreases and the cost of imports increase. Inflation is particularly hard on those on fixed incomes (e.g. pensioners, welfare recipients) whose incomes do not increase in real terms (i.e. over and above the rate of inflation).
(ii) as a member of the Eurozone we no longer have control over our monetary policy (i.e. we can not make the decision to print money). The main player in the Eurozone is, of course, Germany and given their experience of inflation both in the 30's (hyperinflation, Hitler, etc.) and more recently following German reunifiaction the policy of printing money is a complete no-no for them.
(iii) countries who have control of their monetary policy that print money (e.g. currently the UK and US, although they prefer the current euphemism of quantative easing) will find that their currency devalues - goods for exports but bad for imports - and that the cost of borrowing increases. A country with a balance of trade deficict (i.e. imports exceed exports, e.g. the US) will be particularly hit by inflation.
(iv) the cost of borrowing will increase as investors will seek a higher rate of return to compensate them in real terms - this will effect both Governments and individuals
(v) a key ECB objective is to achieve a long term rate of inflation of 2% per annum or lower
(vi) leaving the Euro is really not an option for various reasons - our cost of borrowing would increase dramatically, foreign direct investment (i.e multi-nationals investing here) would dry up and we would become prone to currency speculation.
Having said all that the ECB have pursued a limited policy of printing money (or quantative easing as they prefer to call it) following the meltdown of the Greek economy - however, a policy of wholesale printing of money is not going to happen thanks to German influence. In any event printing money is more of a quick "fix" and not a long term solution.
Westside's point about cuts in the public sector budget is important (I am assuming he actually meant budget rather than services). If we cannot control the exchange rate we need to manage our domestic economy better in order to maintain competitiveness. The private sector is on it's knees - increasing taxes here is not likely to yield much. This means that the only way the Government can keep our economy in any way competitive is to slash the Public Sector budget.
The Pension "Levy" (really a tax in all but name) was a start but much, much more need to be done. Doing so in a way that does not impact dramatically on public services is the issue. Everyone knows that the Public Sector is massively bloated and inefficient - there is no question that cuts can be achieved without effecting services. The question is how afraid are the Government of upsetting the Public Sector trade unions?
hd. -
06-09-10, 15:15GordonGayBennett
Well done. I Googled "Print Money to become rich" too Samlad , but I would like an explanation as to why a devaluation would occur within a common monetaty scenario ?
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06-09-10, 15:23wellhungchap
surely the best thing to do is to contact your financial advisor. if this issue is troubling you this much, you obviously need professional guidance.. fnar fnar............:)
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06-09-10, 15:28GordonGayBennett
hd 7055 - thanks for that info --- so in essence within a common monetary zone a mass printing of money by just one member would not necessarily cause a devaluation but it is outlawed and prohibited as "Cheating".
Well counterfitting is undertaken by organised criminals and gangsters , how are those at the top of the tree in Fianna Fail any
different --- print away I say and lets get the show on the road again ! -
06-09-10, 15:35wellhungchap
yeah man.. now you know.. .. its great eh ? knowledge and everything..
not sure what counterfitting is though.. maybe might have something to do with fitted kitchens.. didnt know that was illegal though. :) -
06-09-10, 15:42GordonGayBennett
Edit unattainable re:10 minutes lapsed. ------ For counterfitting please read counterfeiting.
Reason for attempted edit ----- the Site Weetard got upset by a grammatical error. -
06-09-10, 16:06hd7055GGBQuote:
Originally Posted by GordonGayBennett
The key point is that within a common monetary zone a single member does not have the option of acting alone.
hd -
06-09-10, 16:16El GordoIf we hadn't then our monetary policy would have been run by the same idiots who were in charge of our fiscal policy, and we would be well and truly ****ed.Quote:
Originally Posted by Westsidex
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08-09-10, 12:57CrackShotJackI think you mean "retard", gosh not another error in a post from you, switch on your fucking spell checker!!Quote:
Originally Posted by GordonGayBennett
ahh it doesn't matter I suppose, I hear you just got banned. -
08-09-10, 13:00wellhungchap
i hate to laugh at other peoples misfortune.. but HA HA HA :feckyou:
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08-09-10, 13:26anitasizzleIreland should borrow against the debt it already has, and use that money to get into 'Green' technologies, build eco-friendly homes and commercial buildings, and start producing organic produce and livestock; that way you can turn the assets back into Irish bonds, and sell that shit right back to Wall St., play Wall St. at their own fucking game:DQuote:
Originally Posted by GordonGayBennett
Ireland could also band together with the other countries deep in debt, do your own trading and honoring of debt, basically form an economic union within the European Union, FUCK THEM -
08-09-10, 13:28CrackShotJackyou'd think considering we're a fucking ISLAND that we'd invest heavily in wave farms and wind farms.Quote:
Originally Posted by anitasizzle
You make a good point anita, however I believe it's not necessarily in the interest of the politicians to get us out of this mess, there is evil afoot I tell you. -
08-09-10, 13:41anitasizzleThe whole point in investing 'heavily in wave farms and wind farms'' is to get international investors to invest in that ''fucking ISLAND'' so that that 'fucking ISLAND'' can get out of the financial mess it's in and get people back working. Like I said ''play Wall St. at it's own game'':pQuote:
Originally Posted by CrackShotJack
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08-09-10, 13:42CrackShotJackI was agreeing it you............Quote:
Originally Posted by anitasizzle
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08-09-10, 13:46anitasizzleThank you! Now, I'm going to come back over, and I want change; I've no fear of starting a REVOLUTION!; you don't mind to you?Quote:
Originally Posted by CrackShotJack
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08-09-10, 13:47CrackShotJackdeedin I don't, says I........Quote:
Originally Posted by anitasizzle