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I read that Professor Ray Kinsella also said that Ireland should now withdraw from the eurozone –– which many political and financial analysts worldwide believe to be at “serious risk” of collapse.

These experts also say that the only alternative to a eurozone break-up is closer fiscal union which, they predict, will herald even more severe austerity measures. The more the crisis develops, the more it has become evident that there has been a failure of political leadership at the heart of Europe and worldwide. Last night, UCD professor Morgan Kelly predicted that Ireland’s debt will reach €240-€250bn by 2015 – compared to the Government estimate of €200bn

It’s a conundrum. If Ireland stays in the Eurozone, it will flounder. If it leaves the Eurozone, it will eventually return to growth. But the entire political strata is rabidly pro-EUSSR and that is why the debt mountain forced upon it is sold as a virtue when it is a vice. Ireland cannot possibly hope to escape the transgenerational austerity heaped upon the people by the spineless politicians but how to get out when they all want to stay in?

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  1. There are no doubt dozens of experts who would recommend this course of action; the trouble is that politicians don’t usually take any notice of them if their views run contrary to their own ideas. They simply look for other experts who tell them what they want to know.
    So does it matter what this particular professor says?

  2. To my mind Ireland has no choice, it is either sink or swim – but like the UK, Ireland will have to return to sensible government. Will that happen or will the pro EUSSR stance of both their politicians and the UK politicians overcome reality? I do not know.

  3. Ireland’s back is up against the wall, economically.

    They had the European Union fatted calf to ply their parisitic ways with 10-years ago.

    Now the worm has turned. The Irish are on a financial island and the tide is coming in fast.

    No one is going to toss them a life line. The party’s over.

    As ye sow, so shall ye reap.

  4. Yes, Ireland should default on the debt, leave the euro, and revert to its own currency. But it will have to balance its budget immediately if it takes this course, and that will mean serious cut-backs in state spending and more austerity in the short term. But with the debt burden reduced to (say) 40%, there will be room for the economy to start growing again, especially with a competitive exchange rate. The present policy means a generation lost to unemployment and emigration.

  5. Peter – whilst I agree with your solution to Ireland’s problems, it should be noted that Ireland will also have control of its own currency insofar that it can decide how much money it needs: it will create its own money interest-free in accordance with its own needs. For example, if Ireland needs a new port facility which costs £2 billion, and the benefits it brings are shown to exceed £2 billion, then the national bank simply creates that money: no inflation because the supply of money and the demand are in line.

  6. Yes, agreed.

    But the entire political class in ROI are shackled to the EU empire. It will only be the markets that bring about this salvation for Ireland, but it could come pretty soon.

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