California a failed state video, relevant to Ireland

ei.sdraob

2 part video from

Naomi Klein

watch it in context of a similar sized deficits in ireland and junk credit rating making it more and more expensive to borrow

https://www.youtube.com/watch?v=tj200NUQOFo

https://www.youtube.com/watch?v=DRFF1Uo46VI

source:
http://www.atlanticfreepress.com/news/1/10235-schwarzeneggers-shock-therapy-the-poor-pay-for-the-sins-of-the-rich.html

doolox

Will the leadership ( if any exists ) in the EU say the same thing to Ireland as Washingtons Federal rulers have said to California? That the States must balance their budgets?
In times past we had the ability to control out currency and control out own interest rates and so were able to control wages and competitiveness and protect some jobs in the downturns. NOw we have lost all that by being in the Euro but have gained nothing unless we can look to Europe for assistance but that is not likely to happen.
Looks like we are in for a long painful siege.

transylman

ei.sdraob wrote: »

watch it in context of a similar sized deficits in ireland and junk credit rating making it more and more expensive to borrow

Similar deficits yes, but the GNP and population of California is 7 times ours, so our situation is at least 7 times as bad as theirs.

ei.sdraob

doolox wrote: »

Will the leadership ( if any exists ) in the EU say the same thing to Ireland as Washingtons Federal rulers have said to California? That the States must balance their budgets?
In times past we had the ability to control out currency and control out own interest rates and so were able to control wages and competitiveness and protect some jobs in the downturns. NOw we have lost all that by being in the Euro but have gained nothing unless we can look to Europe for assistance but that is not likely to happen.
Looks like we are in for a long painful siege.

uhm

EU is not a federal state like US, Germany etc dont owe us anything and vice versa, we are a sovereign state in a loose union and dont have "federal rulers" so dont be deluding yourself

membership of the euro currency already saved this country, if you have any doubts then look at Iceland

ECB are helping (it is their job) by keeping the interest rates ridiculously low and buying up assets

Euro membership was giving us assistance since 72, not a single year since has Ireland been a net contributor to EU, eurozone also had low interest rates for last decade, instead of taking this money and investing it wisely we blew it on a housing bubble thats leaving millions in debt and country littered with empty houses (which are still overpriced)

i find it amusing that you are blaming euro/EU memberships, look in the mirror and blame ourselves for screwing up

arghh why am i answering, go back to reading daily mail you :mad:

gurramok

So they have high unemployement along with a well paid public sector, whats new?

http://articles.latimes.com/2009/may/23/business/fi-cal-econ23
http://www.cnn.com/2009/POLITICS/02/17/california.budget.crisis/

http://www.economist.com/world/unitedstates/displayStory.cfm?story_id=13702838

As a result of California’s election, the state now faces a $21.3 billion gap between revenues and spending. Life, which has been no picnic for many in this state since the recession began, is about to get a lot worse. There have already been two rounds of budget cuts since last autumn. A third, savage, round must now follow.

Martyr

It's worth pointing out that if the US didn't spend so much on the military, they wouldn't have large deficit now.

This year alone, they will spend $1 trillion on military.

Should there not be priority to solve problems at home with that money, instead of creating ones abroad?

America is bankrupting itself for a handful of top elites.

astrofool

Do you know how many jobs are created by that €1trn? The money doesn't disappear into thin air you know. It also keeps America as the world's superpower.

It also keeps them ahead of the rest of the world in new technologies, keeping their scientists and engineers in funds and busy.

Martyr

astrofool wrote:

Do you know how many jobs are created by that €1trn?

No, maybe you can tell me?

The money doesn't disappear into thin air you know. It also keeps America as the world's superpower.

Well, the Fed seem to have a pretty easy job making it out of thin air when they want to, which is why eventually it will be worthless paper.

Might explain why China, India, Brazil, Russia, France and Germany want to see an end to the dollar as a world reserve currency.

“Excessively cheap money in the U.S. was a driver of today’s crisis,” - Angela Merkel

Alan Greenspan said:

“I am saddened that it is politically inconvenient to acknowledge what everyone knows: the Iraq war is largely about oil,”

2/3 of the Iraqi oil fields are under foreign private control, so what's left for Iraqi people?
Revenue from oil is being transferred to private owners, just like the bank bailouts.

Do people believe $1 trillion tax dollars a year are being spent to "liberate" or "free" iraqi and afghan people? :rolleyes:

As long as the US remain in Afghanistan and Iraq funding 2 so-called "wars" which are not sustainable, the country will continue to spiral into more debt and the dollar will continue to weaken.

Benny-c

doolox wrote: »

Will the leadership ( if any exists ) in the EU say the same thing to Ireland as Washingtons Federal rulers have said to California? That the States must balance their budgets?
In times past we had the ability to control out currency and control out own interest rates and so were able to control wages and competitiveness and protect some jobs in the downturns. NOw we have lost all that by being in the Euro but have gained nothing unless we can look to Europe for assistance but that is not likely to happen.
Looks like we are in for a long painful siege.

"bread eaten-soon forgotten"

Fat_Fingers

Back on the topic....

To put it in perspective

California is 9th biggest economy in the world .

Year and bit old ranking would put Ireland in 34th place, more recent ranking places Ireland on 55 place.
Max taxable population of Ireland (Labor force) - 2.27 million
Max taxable population of Califronia (Labor force) - 18.49 Million

Ireland's unemployment : 12.2%,
California unemployment : 11.6%

ei.sdraob

http://www.independent.ie/opinion/letters/scale-of-our-crisis--must-be-realised-1853868.html

Friday August 07 2009
With all the scary numbers floating around at the moment, perhaps some comparisons are useful to put things in context.

California is one of the biggest economies in the world. By many counts, it would be the ninth biggest economy in the world if it were a separate country. It has a population of about 37 million people and is home to several internationally known cities (for example, Los Angeles, San Francisco, San Diego) and some of the world's biggest industries (Hollywood, Silicon Valley).

California is facing a fiscal crisis, with an expected budget deficit of about $26bn for 2009.

Ireland is one of the smallest economies in the EU. It has a population of about 4.2 million people, and can claim one city of any size (Dublin) and a number of other small cities (Cork, Limerick). It is home to no industries of real scale.

Ireland is facing a fiscal crisis, with an expected budget deficit of around €25bn for 2009, or about $10bn more than California.

There's a problem.

Hugh Sheehy
Sandymount, Dublin 4