I have popped back to this thread a few times today hoping that someone would have some good reasons why the article is wrong - still waiting and hoping...
I don't think the article is right - like most economists, Morgan Kelly misses vital points.
Morgan Kelly forgets the scenario that started all this - the crooked Banks having no money.
We could not let the lifeblood of the economy simply stop - we had to face the facts of life and support the disastrously, incompetently run banks because to fail to do so would have resulted in far worse structural damage all at once.
With a budget overspend in the tens of billions we could not shaft the bondholders, whose incestuous relationship with each other and our European funders meant that we would be biting the hand that would be asked to lend us money.
The solution is to agree to get our overspend under control and to start thinking about unwinding interest added loans and debts and rewinding them into a fixed added sum debt plus the capital amount borrowed.
I said it at the start of my posting history here and I'll say it again - Christ threw the money lenders from the temple for a reason - paying interest to speculative moneylenders results in crippling debt.
We need certainty on the amount, an extended timeframe in which to pay it, and reduced payments per month/year to allow us to do so.
It is simply not good enough to let people default and cause problems for others who are managing to repay their debt.
This applies to all debts that cannot be repaid.
And if someone says "this goes against all the banking rules" I say fine! This is the only workable solution!
(well, the only one I can think of anyway)
The banks and the finance houses - either national not international - have no moral ground to stand on, and a bankrupt Ireland leaving the EU is the alternative.
No doubt this would bring a tear of joy to some people in the finance houses in in America and Germany, but only until the first car bomb went off.
Oh, and yes, we must undo with the Croke Park Agreement
The private sector is decimated, with people not having to face wage and salery cuts, but no profitable work and unemployment.
It seems clear to me at that particular coal face that at this stage the "social partners" have to see reason - they are a rope around our necks.
ONQ.