Peter Boone of The London School of Economics and Simon Johnson, former chief economist with the IMF have penned a blog about the Irish economy for the New York Times. Ho hum, you say. Not another one.
This is a little different:
“Ireland had more prudent choices. It could have cut the budget deficit while also acknowledging insolvency and requiring creditors to share some of the burdens. But a strong lobby of real estate developers, the investors who bought banks’ bonds and politicians with links to the failed developments (and their bankers) prefer that taxpayers, rather than creditors, pay.”
And this means…
“Under the current program, we estimate that each Irish family of four will be liable for 200,000 euros in public debt by 2015. There are only 73,000 children born into the country each year, and these children will be paying off debts for decades to come.”
“Ireland, simply put, appears insolvent under plausible possibilities with current policies.”