Tuesday, June 29, 2010

Oh, Really

The "leaders" who just concluded the G20 backslapping did not learn one damn thing from the utter failure of austerity measures. & yet, led by the Canadian's Bu$hco, that is exactly what they proposed. So much for actually giving a shit about turning people's lives around. Oh, & don't get me started on the absolutely stupid initiative on maternal health. The fact that the largest financial contributor is the Bill & Melinda Gates Foundation says it all.  Here's a graphic of the GDP of the G20.  That's a lot of trillions of dollars, & they come up with about $5 per woman to improve maternal health.  Yeah, that'll work. Just shoot me know, or later if it suits you.

Oh, back to the Irish.
Nearly two years ago, an economic collapse forced Ireland to cut public spending and raise taxes, the type of austerity measures that financial markets are now pressing on most advanced industrial nations.

“When our public finance situation blew wide open, the dominant consideration was ensuring that there was international investor confidence in Ireland so we could continue to borrow,” said Alan Barrett, chief economist at the Economic and Social Research Institute of Ireland. “A lot of the argument was, ‘Let’s get this over with quickly.’ ”

Rather than being rewarded for its actions, though, Ireland is being penalized. Its downturn has certainly been sharper than if the government had spent more to keep people working. 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.

Now, the Irish are being warned of more pain to come.

“The facts are that there is no easy way to cut deficits,” Prime Minister Brian Cowen said in an interview. “Those who claim there’s an easier way or a soft option — that’s not the real world.”

Despite its strenuous efforts, Ireland has been thrust into the same ignominious category as Portugal, Italy, Greece and Spain. It now pays a hefty three percentage points more than Germany on its benchmark bonds, in part because investors fear that the austerity program, by retarding growth and so far failing to reduce borrowing, will make it harder for Dublin to pay its bills rather than easier.

Other European nations, including Britain and Germany, are following Ireland’s lead, arguing that the only way to restore growth is to convince investors and their own people that government borrowing will shrink.

The Group of 20 leaders set that in writing this weekend, vowing to make deficit reduction the top priority despite warnings from President Obama that too much austerity could choke a global recovery and warnings from a few economists about the possibility of a much sharper 1930s style downturn.
President Obama is right about this issue, but his domestic behavior towards the ReThugs & BlueDung Democrats has not inspired respect or fear in his fellow leaders. & these are the people that apparently rule the world. The world is in for some shit.

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