tag: Greece



18
Jun 2012

Paraguay is NOT Uzbekistan

Today, in economic news, Alex Banbury of Hamilton Capital has put together a list of countries’ denials:

“Spain is not Greece” – Elena Salgado, Spanish Finance minister, February 2010.

“Portugal is not Greece” – The Economist, April 2010.

“Greece is not Ireland” – George Papaconstantinou, Greek Finance minister, November 2010.

“Spain is neither Ireland nor Portugal” – Elena Salgado, Spanish Finance minister, November 2010.

“Ireland is not in ‘Greek Territory'” – Irish Finance Minister Brian Lenihan. November 2010.

“Neither Spain nor Portugal is Ireland” – Angel Gurria, Secretary-general OECD, November 2010.

“Italy is not Spain” – Ed Parker, Fitch MD, June 12, 2012.

“Spain is not Uganda” – Spanish PM Mariano Rajoy, June 2012.

“Uganda does not want to be Spain” – Ugandan foreign minister, June 13, 2012.

(stolen from here)

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1
Jun 2012

Was it fear or stupidity?

supplicationIn a development that has surprised many of their neighbours, Mr. Patrick Murphy and his wife Sinéad today announced they would be making a copy of their front door key and giving it to the burglars who have been ransacking local homes over the past few years. “We’ve decided to make the burglars co-signatories of our child’s Savings Account too”, said Mrs. Murphy, “y’know… just in case they’re still a bit short of cash after they’ve sold our telly and stuff…”

When asked for his opinion on this unusual tactic, one neighbour – Mr. Yannis Papadopolou – shook his head with a mixture of despair and anger. “Bloody fools!” he muttered, “we thought we’d try a similar thing a few months ago and invited the burglars in for a chat. We thought that maybe if they got to know us a bit better they might not be so willing to steal our possessions.” When asked how that worked out, Mrs. Papadopolou became visibly annoyed, “everyone knows how it worked out! That’s why I can’t understand what the hell the Murphy family are doing. The moment we invited the burglars into our home, they trashed most of the furniture and kicked the dog. Now we’re getting threatening letters saying they’ll burn down the entire house if we don’t invite them back.”

Everyone on Europa Avenue agrees that the situation is intolerable. But because the burglars are all either members of the local police force or have seats on the town council, there’s no obvious solution to the problem. Although Mr. Papadopolou, taking a short break from fitting bars to his windows, did have one final observation… “I don’t know exactly how we solve this mess, but I do know the solution is not to make life easier for these criminals. But I guess the Murphys will find that out the hard way. And they’ll only have themselves to blame.”

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29
May 2012

Just Say No (to the Fiscal Treaty)

During the late 1960s when the anti-Vietnam War movement in the United States began to gather pace, peace activists coined the phrase “Against the war, but For the troops”. They wanted to make it clear they understood that individual soldiers weren’t the problem and were not the target of their protest. That actually those soldiers were, in large part, victims of a political class ideologically hell-bent on violent confrontation in Southeast Asia. Quarter of a century later, when talking about the first Gulf War, the late great Bill Hicks (possibly the finest stand-up comedian to have ever lived) turned that phrase on its head when he claimed to have been “For the war, but Against the troops“. It’s a wonderfully mischievous introduction to a great routine.

Vote 'No' in the Fiscal Treaty referendumOddly enough though, and without any comedic intent, I find myself in an analogous position right now. With the referendum on the European Fiscal Treaty being held on Thursday, I find myself “For austerity, but Against the treaty”; an isolated position given the Yes camp generally claim to be “For the treaty, but against long term austerity” (an essentially contradictory stance, but doublethink is hardly a new phenomenon in modern politics). Meanwhile the No camp are largely against both austerity and the treaty… a coherent position at least, though not one that reflects the realities of a society consuming far beyond its means.

Of course, when I say I’m in favour of Austerity, I most certainly do not mean I’m in favour of the policies currently being pursued by the Irish government; the policies being insisted upon by the German government backed by the IMF and ECB; the policies which this Fiscal Treaty aims to enshrine in the Irish constitution. Those policies are fundamentally and disastrously flawed. They are completely incompatible with any notion of social justice and – as such – should be opposed on those terms alone. However, what’s also important to realise is that those policies fail to even address the issues they claim to solve and are thus flawed even on their own terms. With unemployment spiralling out of control in many European states and the threat of social disorder looming over some, the notion that governments should be slashing public spending while simultaneously pumping billions into failed private financial institutions is clearly absurd. It is a policy that benefits banks and wealthy investors at the expense of average citizens. Voting ‘Yes’ on Thursday will be – to fall back on an overused metaphor – like turkeys voting for Christmas.

Because actually, when you look closely at these “austerity” policies being adopted wholesale by short-sighted, incompetent governments – these “austerity” policies we’re being asked to endorse on Thursday – you find they are nothing of the sort. Yes, those on low incomes are being forced to tighten their belts. But the rich are actually getting richer. Let me repeat that because the phrase has been blunted through familiarity, but it’s one that merits a moment’s reflection; in these times of so-called austerity, the rich are getting richer.

In fact, in the case of Ireland, the most recent figures show that while those on the lowest incomes experienced a decrease in disposable income of more than 26%, those with the highest incomes saw an increase of more than 8%. This widening gap is, in truth, the very reason for these “austerity” measures. And enshrining this wholesale redistribution of wealth – from the poorest to the richest – in the Irish constitution would be the most shameful act ever carried out by the people of Ireland (and I’m including our decision to inflict Jedward on the people of Europe twice in that calculation). Not only that, it would fundamentally rewrite the constitution so that it expressly contradicts the ideals of social justice which were enshrined in that document many years ago. Ideals which have not become less relevant over time and are needed now just as much as they were back then.

I urge anyone considering a ‘Yes’ vote to read Article 45 of the Irish Constitution. I will reproduce that article in full at the foot of this post, but in summary it quite explicitly demands that the government intervene to redistribute wealth from the rich to the poor.

The State shall, in particular, direct its policy towards securing: [...] That, especially, the operation of free competition shall not be allowed so to develop as to result in the concentration of the ownership or control of essential commodities in a few individuals to the common detriment.

To endorse this Fiscal Treaty is to endorse an economic system that utterly betrays both the word and the spirit of the Irish constitution. More than that, it betrays future generations by ripping from them a constitution designed to promote social justice and protect them from exploitation, and replacing it with a treaty that deprives them of the ability to make vital choices about their own lives and future. If you vote ‘Yes’ you are clearly stating (though you may be unaware of this fact) that you are happy with today’s bankers stealing the wealth of tomorrow’s children. The Fiscal Treaty has been written by a self-selected elite of the wealthy and powerful to ensure that their interests are forever placed above the interests of the general citizenry. And it seems they may be about to pull off one of the greatest con-tricks in history by frightening the general citizenry into voting for it.

Christine Lagarde

Christine Lagarde's message to the poor

Surely there can be no greater demonstration of the attitude of this self-selected elite than the staggeringly arrogant pronouncements of Christine Lagarde, head of the IMF, earlier this week. As it happens, I’m of the opinion that her astonishing broadside against the people of Greece was actually a calculated tactic to accelerate the process of Greece leaving the Euro. I assume she feels that process is inevitable and has come to the conclusion that it should happen sooner rather than later. Otherwise her comments make little sense, given that they will inevitably alienate the Greek people and strengthen the hand of the anti-austerity parties.

When Lagarde was asked about Greek parents unable to afford medication for their sick children, she insisted that she felt little sympathy and that this could all be solved if the Greeks paid their taxes. Let me make two observations… firstly, if someone can’t afford medicine for their kids, they probably can’t add all that much to the national coffers; so as a solution, taxing them doesn’t make a whole lot of sense. And secondly, Christine Lagarde pays absolutely no tax on her annual salary of almost €450,000 (including expenses). So maybe she’s not the best person to be lecturing the already poverty-stricken for failure to pay enough tax.

Which brings me back to my original point about being “For Austerity”. The sad reality is, western levels of resource consumption – even in these times of austerity – are essentially unsustainable. Simply put; collectively speaking we need to consume less. However, and this is the most important point to take away from this; those who currently consume most need to do the most cutting-back. The belt-tightening should start with those whose belts are already far, far too big for them. It is people like Christine Lagarde who need to be paying more tax. People like her who need to be experiencing some of this austerity, rather than imposing it on those already at breaking point.

Please please please, vote ‘No’ to this Fiscal Treaty. A ‘Yes’ vote is an endorsement of the right of the rich to force the poor deeper into poverty. A ‘No’ vote will have negative consequences certainly. To suggest otherwise would be disingenuous. But those consequences will be as nothing compared to the long-term damage that the treaty will inflict upon social justice in Ireland and across Europe. Those who can afford to pay, should pay. A transition to sustainability demands we must all play our part in reducing our resource consumption, but some of us have far greater scope in that regard, and it is they who should be leading the way.

Finally, a note of hope for those in Greece who despite already being deep in poverty, Legarde thinks should be paying more tax… a note of hope for all of us affected by these unjust and incompetent policies, and a note of warning to those imposing them. You can’t get blood from a stone – that’s true – but they who squeeze the stone hard enough eventually discover that the stone gets blood from them.

And as promised, this is Article 45 of the Irish Constitution in full…

DIRECTIVE PRINCIPLES OF SOCIAL POLICY
Article 45

The principles of social policy set forth in this Article are intended for the general guidance of the Oireachtas. The application of those principles in the making of laws shall be the care of the Oireachtas exclusively, and shall not be cognisable by any Court under any of the provisions of this Constitution.

1) The State shall strive to promote the welfare of the whole people by securing and protecting as effectively as it may a social order in which justice and charity shall inform all the institutions of the national life.

2) The State shall, in particular, direct its policy towards securing:

i. That the citizens (all of whom, men and women equally, have the right to an adequate means of livelihood) may through their occupations find the means of making reasonable provision for their domestic needs.

ii. That the ownership and control of the material resources of the community may be so distributed amongst private individuals and the various classes as best to subserve the common good.

iii. That, especially, the operation of free competition shall not be allowed so to develop as to result in the concentration of the ownership or control of essential commodities in a few individuals to the common detriment.

iv. That in what pertains to the control of credit the constant and predominant aim shall be the welfare of the people as a whole.

v. That there may be established on the land in economic security as many families as in the circumstances shall be practicable.

3)
1° The State shall favour and, where necessary, supplement private initiative in industry and commerce.

2° The State shall endeavour to secure that private enterprise shall be so conducted as to ensure reasonable efficiency in the production and distribution of goods and as to protect the public against unjust exploitation.

4)
1° The State pledges itself to safeguard with especial care the economic interests of the weaker sections of the community, and, where necessary, to contribute to the support of the infirm, the widow, the orphan, and the aged.

2° The State shall endeavour to ensure that the strength and health of workers, men and women, and the tender age of children shall not be abused and that citizens shall not be forced by economic necessity to enter avocations unsuited to their sex, age or strength.

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8
May 2012

Austerity

Synonyms for austerity: harshness, strictness, asceticism, rigour (source: dictionary.com).

CapitalismA little over three weeks from now the people of Ireland will vote in a referendum. At stake is Irish participation in the European Fiscal Compact, a pan-European treaty that attempts to lay down strict budgetary rules for those nations who sign up. The ‘Yes’ campaign is referring to it as “The Stability Treaty”. The ‘No’ campaign calls it the “Austerity Treaty”. While it’s true that I am ideologically opposed to the treaty, I contend that my position is grounded in reality. That is; you can demonstrate – using “facts” and everything* – that the treaty will result in austerity for Ireland, while its characterisation as a “stability” treaty is extremely dubious to say the least.

Incidentally, does anyone remember the Lisbon Treaty? At the second time of asking, we endorsed it in October 2009. The ‘Yes’ camp – the very same people urging ‘Yes’ later this month remember – characterised it as the “Jobs Treaty”. Hmmm, we’ve not had an apology from them on that one yet. But I guess we shouldn’t expect politicians to apologise for completely misleading the citizenry and promising things they’re unable to deliver. Indeed, most of them seem to think that’s actually part of their job description.

What I find really remarkable about modern politicians is their ability to maintain such a breath-taking lack of self-awareness despite living their lives in a media spotlight. They never admit to mistakes; presumably believing they never make any. In other words, believing they are fundamentally better than the rest of us (because god knows we all make mistakes). Moreover, politicians appear so completely unaware of their own limitations as to give the impression that they don’t feel they have any. The vast majority of us over-estimate our own abilities… it’s part of being human… but politicians, whether they are the Left or the Right, do so to such a degree it’s almost beyond parody. Personally I believe I’d do a better job running the country than the current lot we’ve got in the job. But – and it’s a crucial “but” – I don’t think I’d do a great job at it. Just a better one. And given the incredible importance of that job, I’d need to be a self-interested, power-hungry careerist to put myself forward for it unless I thought I could do a great job.

So either the people running the country are just a bunch of self-interested, power-hungry careerists; willing to place their own personal desires and ambitions above the collective good… or they are supremely unaware of their own limitations. Because, let’s face it, it’s hardly a secret that the job they’re doing ain’t that great.

But back to the Treaty

Yes indeed. The posters have started to go up. Far more ‘Yes’ posters than ‘No’ based on a trip into Dublin City today. But that’s to be expected given the financial muscle behind the ‘Yes’ campaign. All three major political parties support the treaty. No surprise there… any suggestion that the Labour Party might take a more nuanced position (especially given the position of the bulk of the Unions) were fanciful in the extreme. Labour donned the neoliberal uniform the moment they sold their principles to Fine Gael in return for a taste of power. Their protestations that they’ve managed to ameliorate some of the more savage cuts proposed by Fine Gael possess but the thinnest shred of truth.

Against the treaty stands Sinn Féin, the Unions (well, most of them) and the leftist parties. Oh, and Éamon Ó’Cuiv. Fair play to Éamon. He may well be the exception to my characterisation of mainstream politicians that proves the rule. And rumours abound that he’ll soon be expelled from Fianna Fáil for his stance. Remarkable really… you can run the country into the ground, you can endorse a Bank Guarantee that transfers massive private debts onto the shoulders of generations yet unborn, you can break a thousand promises to the electorate. All of these things are par for the course in modern politics – commendable even. But to stand by your principles? Apparently that’s grounds for expulsion.

Seriously, you can’t actually be cynical enough about politics any more. It has passed beyond that realm. All we are left with is disbelief, despair and contempt. And hopefully the stirrings of a genuine anger… though I see little enough of that right now in Ireland more’s the pity.

The latest polls seem to suggest the ‘Yes’ majority is being eroded slowly. Unfortunately it seems too slow at the moment to turn the tide come May 31st (though with a bit of luck the election results in France and Greece, along with the failure of the Dutch government to push through the policies of austerity, will inspire us here in Ireland). Personally I ascribe this ‘Yes’ majority to two factors… one: a shamelessly biased media (the Irish Times has been little short of disgraceful on this matter, and RTÉ not much better – once again, we should be thankful for Vincent Browne**… long may he continue to be a thorn in the side of the establishment); and two: the success of the scare-mongering tactics employed by the ‘Yes’ campaign. As I mentioned here before, the campaign was kicked off by a Fine Gael minister insisting that a ‘No’ vote would be “like a bomb going off in Dublin”. That’s the very definition of scare-mongering… comparing my ‘No’ vote to an act of terrorism; suggesting that when I place my ‘X’ in the ‘No’ box, I am metaphorically carrying out an act of extreme violence. Such undiluted nonsense from a government minister should be shameful, but these people know no shame.

On top of that we’ve had government spokespeople assuring us that a ‘No’ vote will “cut Ireland off from external funding”. It took those opposing the treaty over a week to finally wrest a statement from the “impartial” Referendum Commission that this was – in fact – a lie. Plain and simple. A lie. But the Commission’s declaration hasn’t had nearly the same media exposure as the lie it exposes.

We need Austerity

See, this is the weird thing. Europe – like the rest of western civilisation – actually needs to radically reduce its consumption. We have created an unsustainable society that we should be scaling back right now (because if we don’t do it, then resource depletion will do it for us pretty soon anyway… and chances are it’ll involve less suffering if we take matters into our own hands on this issue). But, to jump back to the synonyms which opened this post, we need the austerity of ‘rigour’. And what’s being foisted upon us is ‘harshness’. That’s how it is, no matter what the ‘Yes’ campaign might claim (and each time they claim otherwise, remember the same people also claimed Lisbon was the “Jobs Treaty”).

The policies being adopted by our government; the policies that will be enshrined in the Irish Constitution if we pass this dangerous treaty; the policies that Angela Merkel has announced are “non-negotiable” (can someone please tell me who the hell gave the German government the right to tell the rest of Europe what we may or may not negotiate?); these are policies that will be unnecessarily harsh on the vast majority of Europe’s citizens, precisely so that the financial institutions of Europe don’t need to adopt a rigorous approach to their affairs.

This treaty places the interests of European banks above the interests of European people (and those who say those interests are synonymous need to cop on to themselves). It imposes austerity without addressing sustainability. Europe needs a sustainable alternative. It needs a radical alternative. An alternative based on social justice (a radical proposal in itself in these days of neoliberal greed and casino capitalism)… an alternative based on human decency and human dignity. I believe that alternative can be found in a flight away from capitalism. I believe that we should be looking towards the ideas of Bertrand Russell, Pierre-Joseph Proudhon, Lucy Parsons, Gregory Bateson, Albert Einstein and so many others. People who realised that capitalist society has been shaped by the few, for the few. And that this has to change if we are to create a world worthy and capable of long-term survival.

A ‘No’ vote on May 31st won’t bring the words of those wise few to life. It won’t bring about a Golden Age of social progress. It carries risks and will certainly be met with a punitive reaction from the financial institutions that currently run Europe. A ‘No’ vote will not bring back the Celtic Tiger, because the Celtic Tiger is never coming back. But it will strike a blow against the forces of injustice and inequality. It will halt our own government’s headlong rush into the abyss. And it will demonstrate that – just like the French and the Greeks – we in Ireland are fed up taking orders from the very bankers who destroyed the global economy. Vote ‘No’.

* Michael Taft supplies some of those facts in this article on Politico.ie. You can find plenty more if you click around that site.

** Out of interest, could a non-Irish-resident reader click on this link and tell me whether it’s possible to watch the Vincent Browne show online from outside Ireland? You don’t need to watch a whole show (unless you really want to), just click one of the recent episodes and let me know if it is viewable… I occasionally want to link to a particular episode from this blog, but don’t know whether – like the BBC iPlayer – it’s inaccessible overseas.

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1
Nov 2011

More news from Greece

A few months after the United States invaded Iraq, Dubya Bush sent Condoleeza Rice on a whistle-stop tour of US allies. Presumably her job was to gauge how much support was out there and to shore up whatever there was. I was living in the UK at the time and I recall the protests that greeted Rice’s arrival in London. A few days later she touched down in Athens and the news reported a huge demonstration that ended with petrol bombs being thrown at the US Embassy. It occurred to me that there was an important cultural difference on display there. It’s not about which response was right… whether Rice’s visit merited placards or petrol bombs. It’s that it takes far less provocation to get the Greeks to reach for the petrol bombs than it does to get the British.

Greek protestsThis is something that I’ve constantly borne in mind during the Greek protests. The austerity measures being forced upon the Greek citizenry aren’t that much worse than those being forced upon us here in Ireland. But Occupy Dame Street notwithstanding, the Irish citizenry is a long long way from general strikes and petrol bombs. Which isn’t to say that we can’t be pushed to it. Our history of armed uprisings is quite emphatic about that. But we appear to be slower to be roused to such action.

Why that should be, and whether it’s for the better or the worse is beyond the brief of this short post, but it’s worthwhile to place the Greek protests in that context. Which is to say… if relatively limited austerity measures will provoke the protests we’ve seen, then the potential for a populist movement toppling the government is very real indeed when you consider the far more draconian measures coming down the line as a result of the “bail out”. Something akin to revolution has been brewing in South-eastern Europe over the past few days. And lest you think I’m guilty of hyperbole, I present two pieces of evidence. One you already know about. Another that’s just been announced and which may or may not catch the attention of the global press.

The one you know about is, obviously, the referendum announcement. I was incredulous when I first heard it on the news yesterday. Papandreou couldn’t have created more chaos if he’d started chucking live grenades around the Head of State meeting. First he agrees to the terms of the “bail-out”, then – after every other EU leader holds a press-conference in which they speak of their relief at the deal being finalised and how it would have been disaster for Europe if they’d failed – he goes on TV and retracts his pledge and instead tells Europe he’s going to consult the Greek people. The same people whose response to the current deal includes general strikes and rioting.

It seems pretty clear to me that Papandreou arrived back in Athens, fresh from agreeing to the European “bail-out”, only to be met by grim faces. And he was told… “If you do this, your government will fall. And whatever replaces it will not implement that deal anyway”. He was backed into a corner and did the only thing he could; he bought some time for Europe to come up with a way of easing Greece out of the euro as gracefully as possible.

How do we know he was backed into a corner? Well, that’ll be the other piece of evidence. A few hours ago the Greek government surprised a lot of people (including those in the military) by announcing a wholesale change of the entire military top brass. The Heads of the Army, Navy, Air Force and National Defence Force were all replaced earlier today. On a day where the Prime Minister is clinging to power by his fingertips, where his government’s majority has been whittled down even further by defections and prominent members of his own party are calling on him to resign. On a day where global markets are plunging as a result of Papandreou’s referendum announcement and European politicians are – not to put too fine a point on it – completely freaking out, does anyone think the Greek government has anything at all on its agenda that isn’t extremely urgent? And there’s not a lot of reasons why the replacement of the military high command becomes urgent.

Papandreou has played his final cards. The referendum might turn out to be a slice of political genius (opposition to the “bail out” is running at 62% according to the latest poll I saw… that’s not insurmountable) and the current government may somehow survive within the Eurozone by gaining a public mandate. But in my view, the odds of that happening are significantly worse than those poll figures suggest. With internal pressures beginning to fracture the government and something very strange going on with the military, it seems unlikely that Papandreou will be in power long enough to hold the referendum. And there’s no guarantee that his successor will feel the need to honour Papandreou’s commitment to a public vote.

One thing I am looking forward to though, is just what Vincent Browne will have to say about this all on his show tonight. I can almost hear his apoplectic spluttering as he confronts whatever lamb the government have sent to the slaughter… “But wha… wha… why are the Greeks getting a vote on this vital issue but the Irish are not? Does the government believe Irish citizens are not to be trusted? Or maybe that we’re all too stupid to understand what’s going on?”

Photo courtesy of The Guardian.

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7
May 2011

On hearing the news from Greece

The dream of a united Europe is one I share. Hell, I’d extend it further… a world without borders would be a glorious thing. Imagine there’s no countries.

But sadly that original European dream, first envisioned after two world wars had ravaged the continent, has been hijacked by financial institutions and the forces of the free market. It has become simply a mechanism by which the rich and powerful use the sweat and blood of the masses to lubricate the machinery of capitalism and further entrench their wealth and power. Some have said that it was ever thus. That the European dream was always just a way for the few to prosper at the expense of the many. But I don’t believe that. The remnants of my erstwhile idealism still provide enough of a reminder that sometimes we people do things for the right reasons. That it’s not always craven and manipulative self-interest that drives us.

But who today can still place their faith in the European dream? As our governments collude with private capital to heap unearned debt onto the shoulders of the masses, who can now believe that this once great project still has The People at heart?

Greek 2 euro coinWhich is why I do not lament the first fractures appearing in our continental unity. The past few days have heard furious denials from Athens that the Greek government is considering withdrawing from the single currency. Our political classes don’t seem to realise that we have become familiar with the pattern… first the denials (that there’s a problem, that the banks are in trouble, that we need an IMF bailout) and then the reluctant embrace of that which was denied.

The Greeks deny any such idea is being considered or has been discussed. Others suggest that it has been discussed but that it’s merely a negotiating ploy to put pressure on the IMF and ECB to soften the terms of the bail-out. Either way, it’s causing problems for the single currency and we’re hearing rumours of frantic secret talks aimed at holding the Euro Zone together.

I know people who will gleefully cry “I told you so!” And hey, let them have their whoop. Those who predicted the single currency would fail look like being right. Though the sad thing is… it wasn’t inevitable. Just as with the European dream as a whole, I kind of like the single currency idea. I think it would work better in tandem with ultra-local currencies built on a date-limited model, just as I think government works best as a combination of the ultra-local and supranational with little need for the middle tier. But sadly, although it was not inevitable, it looks as though we are fast approaching the fragmentation of the euro. I imagine it will be retained by a smaller “inner circle” of nations, but those of us on the periphery (Greece, Portugal and Ireland to start with) will find ourselves forced to withdraw unless an agreement to write-off the vast majority of our debt is reached. And while that’s still a possibility, I’m not holding my breath.

Put simply, the repayment of our debt (especially when you chuck in the massive bank debts run up here in Ireland that have been immorally thrust onto the public) will be impossible without massive economic growth, akin to that experienced in the late nineties / early noughties. And that’s not coming back. In fact, we are entering a period of long-term economic contraction which will be caused by resource depletion. By 2015 (and probably a lot sooner) economic growth in Portugal, Greece and Ireland will be at an end for the foreseeable future. The only possible way to repay our debt at that point will be to withdraw from the single currency and rapidly devalue our local currency.

This need not lead to massive social problems in itself (if done right) though the root cause of the trouble – resource depletion (particularly but not limited to peak oil) – inevitably will. I still see Ireland as a better place to weather the coming storm than most other places… but only if we grasp the bull by the horns and begin a massive peak oil mitigation strategy in the near future. Our current government don’t possess the vision or the competence to journey that particular road, but I don’t expect them to last the full term. We may have another roll of the dice sooner than we think.

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