Lessons from the Irish

Major World Market Graphs At A Glance

Daily  5 Days  1 Yr

-------- Original Message --------

Subject:	Foreseeing the Economic Future of the UK and the US… Look at the Irish
Date:	Tue, 29 Jun 2010 04:52:49 -0700
From:	Jas Jain

Foreseeing the Economic Future of the UK and the US… Look at the Irish 

Irish were drinking the real-estate bubbly in bigger and taller glasses than Americans and the Brits. The bust came, as expected, and now they are suffering from the hangover. Americans were led to believe that Bernanke knows how to fix the problems (man, do born-and-bred American dopes get taken by the promises of fixing the problems or what) and avoid depression. Postponing the depression and making it lot worse in the future is all that Bernanke and Obama can deliver. Suckers.

"And how will they (Irish] break the downward cycle? Export to England and America ..." With most economies in recession, or depression, in not too distant a future, whom are various countries going to export to? Time has come to pay the piper. Dismantling of the Anglo-American imperial life-style is going to be painful. While the crooks will live like kings. The system of the Crooks has delivered as promised. The most important American story of the past 15 years has been FINANCIAL FRAUD. And it spread to most of the world.

Jas

-x-x-x-x-x-x-x-x-x-x-x-x-

http://www.calculatedriskblog.com/2010/06/ireland-austerity-in-action.html

Monday, June 28, 2010

Ireland: Austerity in Action

by CalculatedRisk on 6/28/2010 10:41:00 PM

From Liz Alderman in the New York Times: In Ireland, a Picture of the High Cost of Austerity

As Europe's major economies focus on belt-tightening, they are following the path of Ireland. But the once thriving nation is struggling, with no sign of a rapid turnaround in sight.
...
Rather than being rewarded for its actions, though, Ireland is being penalized. ... Lacking stimulus money, the Irish economy shrank 7.1 percent last year and remains in recession.

Joblessness in this country of 4.5 million is above 13 percent, and the ranks of the long-term unemployed — those out of work for a year or more — have more than doubled, to 5.3 percent.
...
The budget went from surpluses in 2006 and 2007 to a staggering deficit of 14.3 percent of gross domestic product last year — worse than Greece. It continues to deteriorate.

As the Irish government cut the budget, the economy contracted faster and the deficit as a percent of GDP increased.

And how will they break the downward cycle? Export to England and America ...

[T]he government is pinning nearly all its hopes on an export revival to lift the economy. Falling wage and energy costs, and a weaker euro, have improved competitiveness.

This approach works for one country - or a few - but not if every country is doing it.

Major World Market Graphs At A Glance

Daily  5 Days  1 Yr