So I’ve been asked what I’d do to get Ireland past this latest funding crisis.
Answer: I’d announce that in the case of default new Irish govt debt is freely transferable and can be used for the payment of taxes to the Irish govt.
This should facilitate funding for the near term.
This is, not coincidentally, exactly what Smart Taxes have advocated in our Budget submission as Option 2 for the State to get out of its mess. Option 1 remains an ECB disbursement to all Euro-zone economies.