Feb 052012
 

Enda Kenny was on the radio this morning, talking about his recent head-patting encounter with Nicolas Sarkozy.  He says the new fiscal compact won’t cause any more austerity than we already have, which came as a great relief to me, and no doubt to the millions of adoring citizens hanging on his every word.

Thank God, they all breathed.  No more poverty.

Well, not quite. Unfortunately, in addition to politicians, we’re also afflicted with the sort of annoying  know-alls who actually look at the facts and tell us the truth.  Not a comfortable place for a politician.

Such an irritating know-all is Brian Lucey, professor of finance at the School of Business, Trinity College Dublin.  I’m only guessing here, but I think it’s safe to presume that Brian knows more than Enda about economics, and Brian is not the slightest bit optimistic about the fiscal compact.  I base this assumption on the simple fact that Enda has no qualifications at all, and never gained experience in anything useful, apart from being a primary teacher.  This is the guy you want out there batting for you against Sarkozy and Merkel, and he’s telling you everyting will be all right.

Leaving that aside, let’s see what this troublemaker Lucey is saying.  According to him,

The basic issue that the compact addresses is that all signatory powers must have a binding rule on how much government debt they are allowed to have, and if this is too much (defined as more than 60% of GDP) they will have to reduce it at a rate of 5% of the balance per annum, and to maintain a balanced or surplus budget. This is not sensible economics. It rules out any countercyclical government spending at least until the 60% balance is reached.

What does this mean?

Well, according to Lucey, it means that Ireland would face up to 20 years of austerity followed by an indefinite period of being unable to borrow regardless of fire flood or famine.

But you know, at the end of it all, this Lucey fellow is just another academic.  Isn’t that right?  These are just the ravings of somebody who studied the subject in great depth, and you can’t trust guys who know what they’re talking about.

What you can trust is a soundbite slipped to an unqualified  politician by a spin merchant five minutes before going on air.  After all, as we know, a politician would never put you wrong.  Isn’t that true?

  9 Responses to “Enda Kenny Says Fiscal Compact Won’t Bring More Austerity”

Comments (9)
  1.  

    Today’s interview just the same old lies and waffle.
    The population needs to stand up now and say that this lying and simplistic waffle that the Government spokespeople continue to spout is not good enough. The real situation needs to be explained and the real solutions found – no more we will pay everything we are asked to.
    The total debt in the country is too much for us to carry and our leaders need to get real!

  2.  

    They’ll only get real when their own big fat salary/pension/expenses cheques bounce. That won’t happen until the rest of us are bled dry first.

  3.  

    same old crap from enda,,,
    the greeks are playing hardball,,
    enda says, yes sir,how high do you want me to jump ???

  4.  

    Enda’s carry-on is nothing new.
    Previously; in our European history, a guy called Neville Chamberlain brought a similar story home to his country.

  5.  

    This government has capitulated to a foreign power. It has not defended the interests nor well being of it’s citizens. It has accommodated the financial rape of the Irish economy and subjugated the Irish people. It has proven itself to be sel serving and morally corrupt as it pays itself excessively. Highest paid Government Ministers in the world governing in a land which bears the highest debt of any western economy.

    Is this government guilty of TREASON?

  6.  

    I’m passing this on without prejudice. All that I heard about it is that it originated from a Fianna fail branch in Dublin. I don’t know if it’s right or not.Subject: Household Charge

    “You won’t get a bill because the charge is a Statute. People need to
    understand this: A Statute is a “legislated rule of society given the
    force of law by the consent of the governed.”(Black’s Law Dictionary 4th
    edition). Who are those it governs? Us, the public.

    This household charge is a Statute, otherwise known as an Act of
    Government and only carries the force of law upon you if you consent to
    it which means that you are legally obliged to pay if you consent or in
    other words go on to householdcharge.ie and
    register. Your silence and inaction will also give the appearance of no
    consent. If you do not consent, a Statute cannot affect you in any way
    whatsoever.

    The courts know this and the last thing they will do is tell you. In
    fact they will hide this from you at every opportunity they can. On the
    other hand, if you tell them, they will accept it because they know it
    is actually true. According to the above definitions a statutory
    instrument is a contract. If you register for this “charge”
    you are consenting to this statute ie: signing the contract. This is why
    the Government are ASKING the people to register and not just billing
    them instead.”

  7.  

    This is complete horseshit. It’s been doing the rounds for a while now and I’d like to know what fool dreamed it up.

  8.  

    Kenny has a plan alright. Its clearly laid out here. God save the Queen and all that.

    http://www.rte.ie/drama/featured/storyland/videoleaks.html

  9.  

    God save the Queen. hear hear!!!!

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