Bill’s Advice to the Irish State

The best thing to do from here on 30 November 2010 is to capitalise AIB/BoI and get their tier 1 ratios to 12%. secondly, go along with the INF/ECB figleaf for about 18 moinths and then refinance the ECB/European moiety at realistic levels. If we can succeed at 1.5% interest rate and get more money then we can avoid avoid the Special Drawing Rights (SDR) of the IMF. This will have to employ background lobbying by Enda Kenny and the Team Fine Gael ( ie the FG Champions League Finance Team) through the European People’s Party and the simultaneous lobbying of the European Socialists by the Labour Team of the usual suspects. The idea is to underline the penal rate of interest which will operate against the European Union’s cohesive interests in the medium term. Revisiting the results of the Versaille Conference nearly a century later when the consequences are well recognised is not a wise solution.

Ireland will remain relatively weak as long as we have to borrow truck loads of money to fund the state. This gap can only be closed by reducing waste, increasing taxes and cutting spending while hoping for growth to close the deficit by increasing the tax take. So let’s get our cuts in now and try to save as many jobs as possible. The Croke Park Agreement is basically anti-jobs. I prefer pay cuts to job losses. That question should have been put to David Beggs and Jack O’Connor on O’Connell Street on Saturday.

Will the Irish government be sovereign during this period? Tough Enda – but No!

Can we go elsewhere and avoid some of these sources of high cost money?

Yes – China and the Middle East

Comment: We need to be creative, clearheaded and not clubable. The IMF/ECB load can be viewed as a failsafe mechanism to avoid the bond markets until we can afford to go there again. Meanwhile a look around unusual corners is in order.