Feck Off Euro-Socialists

Euro-Socialist and Green MEPs have tabled a motion calling on Ireland to double corporate tax rates as part of a quid pro quo for a bail-out. Not a single Irish MEP has supported the motion. Ireland should just tell them to “feck off”…

Douglas Carswell is right, Ireland should decouple and default. Coupling the Celtic Tiger to the euro was a disaster, it was inevitable that when economic cycles were asynchronous the big core EU countries would set interest rates to suit themselves. The ECB kept rates too low for Ireland’s over-boiling property market, which predictably bubbled over. Exactly as Euro-sceptics from Farage to Redwood predicted would eventually happen.

The Irish property crash has destroyed the banks, none more so than Anglo-Irish Bank, a bank run by corrupt allies of the governing Fianna Fáil party. The state guarantees proffered in the panic of 2008 to Irish banks gave them the backing of the state’s ‘AAA’ credit rating. Those guarantees have now sunk the state’s credit rating.

A World Bank report from back in May 2009What Went Wrong in Ireland? written by Patrick Honohan, Professor of International Financial Economics at Trinity College Dublin, put the blame squarely on joining the euro and having the wrong interest rates:

…the underlying cause of the problem was … too much mortgage lending (financed by heavy foreign borrowing by the banks) into an unsustainable housing price and construction boom. The boom seemed credible to enough borrowers given sharply lower interest rates with adoption of the euro … it was Economic and Monetary Union (EMU) entry that really started the housing price surge by sharply lowering nominal and real interest rates, thereby lifting equilibrium asset prices…

Honohan isn’t some obscure professor, since writing that report Honahan has been made the new governor of the Irish Central Bank. Left-wing British commentators like the Fabian’s Sunder Katawala, the Indy’s Ben Chu and even Polly Toynbee are trying to blame Ireland’s woes on low tax rates and free market reforms. No serious Irish economist attributes Ireland’s crisis to low tax rates. The reason Polly, Sunder and Chu want to present that argument is to stick it to those of us on the right who praised Ireland’s supply-side economic policy reforms, which is why they point the finger at the likes of George Osborne, Dan Hannan, John Redwood and Nigel Farage. It is intellectually dishonest of them to cite derisively the British right’s praise for Ireland’s successful free market micro-economic reforms and ignore warnings from the same about the macro-economic systemic risk of joining the euro. That is exactly what the left-wing commentariat is trying to do.

The micro-economic reforms that led to the Celtic Tiger pre-date Ireland entering the euro and were designed to improve the supply-side potential of the economy, make markets and industries operate more efficiently and thereby contribute to a faster rate of growth of real national output. Low taxes and freer markets achieved that objective – incidentally many of those reforms were championed in the 80s and 90s by the Progressive Democrats – the party of which Guido was a member. After joining the euro in 2000 Ireland had negative real interest rates, sparking an out of control property bubble.

German economic advisers from Frankfurt have been in the Irish finance ministry and central bank for nigh-on a year. Last month the ECB in Frankfurt mandated the Irish government to pay off European holders of Irish bank bonds – the European bail-out of Ireland is really a bail-out of European lenders to Irish banks. In joining the euro Ireland’s economic sovereignty was surrendered by Fianna Fáil with the support of almost the entire political class, consequently the next generation of Irish taxpayers have had their future mortgaged. Guido could cry for what the europhiles have done to his country…




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Quote of the Day

Jeremy Corbyn in the Evening Standard

“… we must also face the uncomfortable fact that a small number of our members and supporters hold anti-Semitic views and attitudes, which need to be confronted and dealt with more rapidly and effectively.

The evidence is clear enough. Labour staff have seen examples of Holocaust denial, crude stereotypes of Jewish bankers, conspiracy theories blaming 9/11 on Israel, and even one member who appeared to believe that Hitler had been misunderstood.

So let me be clear. People holding those views have no place in the Labour Party.

… we have not done enough to get to grips with the problem, and the Jewish community and our Jewish members deserve an apology. My party and I are sorry for the hurt and distress caused. … We must strive to understand why anti-Semitism has surfaced in our party…

… when criticism of or opposition to the Israeli government uses anti-Semitic ideas — attributing its injustices to Jewish identity, demanding that Jews in Britain or elsewhere answer for its conduct, or comparing Israel to the Nazis — then a line must be drawn.  Anti-Zionism is not in itself anti-Semitic and many Jews themselves are not Zionists. But there are also a very few who are drawn to the Palestinian question precisely because it affords an opportunity to express hostility to Jewish people in a “respectable” setting. Our movement must not be a home for such individuals.

Second, there are people who have come to see capitalism and imperialism as the product of conspiracy by a small shadowy elite rather than a political, economic, legal and social system. That is only a step from hoary myths about “Jewish bankers” and “sinister global forces”.

These views do no service to the struggle for a just society.”

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