My previous post (actually about twenty minutes ago) discusses the Irish debt crisis. But I am not on the scene, I don’t live in Ireland. But homopilosophicus is a citizen and writes from there. Here is his take on the crisis. It’s intelligent and it’s a person, not a media company, not a corporation. He’s not selling anything or wanting you to do anything except understand.
James Pilant
On Sunday 28th November 2010 the Fianna Fáil government of Ireland, which now governs without the mandate of the electorate, signed a contract with the International Monetary Fund which guarantees a crippling debt burden for the Irish taxpayer to bailout the financial institutions of this country. The government entered into such negotiations with the European Central Bank and the IMF in secret whilst denying the fact to the people of Ireland. Ev … Read More
via homophilosophicus
Pilant's Business Ethics Blog 
This debt trap that homophilosophicus explains in his blog has been the privilege of a few, underdeveloped nations, now successfully competed and occupied by the erstwhile developed nations, led by United States.
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Jayaraman, I am not sure of what it is you are trying to say. Could you please go into a little more detail on this point? I certainly don’t wish to make assumptions of your opinion and start discussing in the wrong direction.
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It is the signature with IMF on account of crippling debt burden and at the same time the faucet drying up to pump in money input to the bathtub where the drainage is mainly on account of repayment schedules, as homopilosophicus explains. This phenomenon was the privilege of the underdeveloped nations. UK for example had to cut all their social responsibility expenditure such as dole money and free lunch to old people mainly because of the income generated has dried completely and the dependence on taxpayer’s money to repay debts already committed. Same case with US of A as the income generated have fallen way down that cuts are imposed on NASA and other projects with the outstanding payments by US to other nations are much more than any other nation in the world. But it had to be paid back. US owes considerable sum to China to whom they US has issued multi-trillion dollar bonds. Meaning the citizens of US will have to take the burden of repayment which could be only by taxation. If exports of US bring in revenue for a better balance of payments then yes it can come out of the trouble. What is happening to Ireland will happen to very many countries like Sweden or UK the welfare states unless they cut the expenditure on the welfare expenses. US has already got into the debt trap because of adverse balance of payments. Citizens of US are in worse condition than even Irish. Unemployment rates should be targeted to less than 5% so that revival of industries take place. US Nobel laureates in Economics are yet day dreaming without giving a guidance how to get it below 5%.
US Corporate is badly governed, please see my blog: 7 Steps to Corporate [America] Governance http://wp.me/p18MVb-3h;m Have you seen Inside Job of Charles Fergusaon? Please see my blog: Note to President Obama – what’s the way out http://wp.me/p18MVb-w
US has a lot to catch up with the disaster they are in. US can do it if they focus on Governance that creates productivity and that shall definitely help countries like Ireland, Greece to come out of their economic problem. To repeat US has to concentrate on Governance of resources they are entrusted with.
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