Paul Krugman once again cites Ireland as example of failure of austerity

greece is still in the Eurozone Paul, Wrong again. They accept the bailout and its conditions. Ha, ha. How's your imminent default on July 1, got any great ideas about how to pay off your $15 tillion or get the President and Congress to agree a solution. Comeon so-called great mind, what's the answer?

I just heard the "strangest" thing on one of the Wall Street TV Shows. They said that with Greece, Spain, Italy and Ireland all on the brink, the only thing that the EU Central Bank can do to save the European Union is to print more euros. The question is whether Germany will allow it.

Does anyone really care what this liberal has to say? I mean seriously...what are his credentials...let's take a look. Nobel Prize...well, we all know the this means nothing...they are liberal awards, promoted by liberals for liberals. They mean nothing. He works for the New York Times, LMAO, the most liberal biased rag in the world. This man is a clown...all he promotes is more government spending, more socialism and more chaos for the world.

…there is also the “misallocation,” I might add, of “expectations”… building “shell estates” can not be sustained indefinitely, given absorption rates and the condition of the properties…anymore than the “shell” estates held by the Churches, and others, in southwest Ireland (on confiscated Fitzgerald lands)can be sustained forever… once (as it has) Ireland stabilizes its sovereignty, these estates – and they are – should not be used as collateral for the future allocation of either capital resources (projects sought and funded on the value of Fitzgerald lands) without just recompense to the FitzGeralds (and, eventually, the O’Neills and O’Donnells) or the allocation of natural resources (water, oil & gas, etc.)… Krugman says “austerity” is the wrong course for Ireland…misallocation of labor, capital, natural resources, industrial capacity, and conceptual (intellectual property) resources – to include the misallocation of Fitzgerald lands in southwest Ireland – is the wrong course for Ireland.

By the Bay, I will wait on others to correct your impression of “failed” economy vis a vis China…I personally prefer to correct Dean Jackson’s impression that central banks set “Interest rates”… central banks do NOT set “interest rates.”…through prudent (or imprudent) monetary policy they can alter the “discount” rate, reserve ratios, etc., and ultimately impact interest rates, yet they do not ‘set’ the i rate…where you are hammering the nail square on, DJ, is in raising the question of the misallocation of labor, capital, and natural resources…and there are many questions about each

wdwrkr371, primary school taunting will get you nowhere. Grow up.

EphraimKibbey,you're mistaken, the US printing money has made it the most debted country in the world. Additionally you can't even decide how to control your debt or pay it. The dollar is weak, that's why US tourists can't afford to come to Ireland or Europe and have been unable to for years, the US dollar is worth so much less than the Euro and most other world currencies. You're a failed economy depending on China holding your debt.

@Bythebay - you are mistaken! Printing money does not create DEBT. Borrowing money from China and selling bonds to people and pension funds creates debt! As long as the dollar is strong, it can be printed to pay off that debt as we wish. ***** @DeanJackson is correct however. The only problem with doing that is the worry of massive inflation but we are not yet doing well enough for that to be a concern. As a matter of fact, most investers would like to see interest rates a bit higher. The nice thing about printing your own money, instead of asking Germany to do it for you, is that you can start and stop printing as your own economy dictates. It was recently calculated that investers are charging less in interest than the change in the dollar meaning that they are paying the U.S. government to borrow their money. The corrected interest rate in constant dollars is currently NEGATIVE .5 to 1%. The U.S. is wasting this perfect time to borrow and invest in our economy because the GOP wants to destroy Obama and is run by a bunch of Ayn Rand, me, me, me fanatics.

Spain has just had 100 Billion euros allocated to shore up its banks…Ireland has more shells in its construction and real estate market than it has on some of its strands…This is not, Mr. Krugman, “austerity” in the allocation of resources…

Howdy, mates. Yep, someone may have said the same of me, more than once. Meanwhile, @Dean Jackson, while interest (i) and Return on Investment (ROI) have some overlap in effect, there is certainly no direct relationship between the two. An ROI is a measure of a specific (investment) project whereas interest (i) - particularly when speaking of an entire economy or central bank- is a partial indicator of the cost of capital in the financial system. Quite different. Concisely, there is no casual, or co-varying, relationship between the variables.

Bythebay = Egit with big mouth.

EphraimKibbey, the US has been printing as much money as it wants and that's what has gotten it $15 trillion in debt, imminent default on July 1 and the most debted country in the world. It is owned by the Chinese.

Ireland didn't rebound economically not because of anything Ireland didn't do but because of the world economies such as the US and other European countries. With the US refusing to deal with its $15 trillion debt and so many US companies in Ireland we will continue to be effected by the ineptitudes of the US economic crisis.

The US is on austerity and is not creating jobs. You will face economic collapse on July 1 if you don't reach agreeement on your deficit. After the Presidential election, you will know austerity as no other country does. You are the most debted nation in the world.

Those in the US who have no comprehension about the EU, Ireland is independent! However, as you all know if you have mortgages, credit card debt, student loans, etc. there are requirements when you receive those loans. Ireland has reqirements for the loans received from the EU and IMF in Eashington and is fulfilling those requirements. If we didn't, it could cause economic collapse not only in Europe but also in the US.