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View Diary: Ireland ready to take the Euro hostage (256 comments)

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  •  When the US gets in trouble it's stimulus (4+ / 0-)

    Our solution to get out of the Great Recession is stimulus. We lower interest rates, pour money into the economy, and run a deficit. When other countries get into trouble the solution is draconian, punitive, austerity. They can't both be right. The bottom line is that austerity is designed to pay off the creditors, that is, protect wealth. The Irish people are right to rebel. They would have a better chance of paying off debt in the long run if they allowed investors in the banks to take a shellacking, create or  promote existing smaller banks, and stimulate the economy. Debt needs to be discounted, in an organized fashion. After all the money poured into mortgages was at risk from day one. They need to tell the EU that foreign banks need to discount the debt, reduce the interest and be patient.

    Neoliberalism found a way to stretch the limits of investment, but like most things related to this economic philosophy, this was critically flawed. We haven't seen the end of this nightmare nor have we even begun to replace it with something real.

    •  Re (3+ / 0-)
      Recommended by:
      Odysseus, k9disc, JakeC
      We lower interest rates, pour money into the economy, and run a deficit. When other countries get into trouble the solution is draconian, punitive, austerity. They can't both be right

      Neither is "right". They are both disastrous policies.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sun Feb 27, 2011 at 09:30:56 AM PST

      [ Parent ]

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