Others do not believe the government’s desperate cuts plan can avoid an IMF/ECB ‘rescue’, see this report on Europe Economonitor.  I suggest that nobody really believes that the Irish fairy story will have a happy ending.  It is simply now a matter of going through the motions to convince the IMF/ECB that we did our best God love us, so they will not be too hard on us.

Of course there is another way! Check out again Auerback and Mosler proposals for the Eurozone Deficit Terrorism and  their ruse for Greece. It does require a little imagination and dare we say it, balls.

….But I think that we are still missing the main point here. This is not only a question of how dubious it is that Ireland can get its house back in order (and what kind of economic pain it will take) it is also a matter of whether it is in Ireland’s interest to enter the market at all. Essentially, the current interest rates are unpayable for Ireland today but also in the middle of 2011 since this is where, presumably, the full force of fiscal contraction will be put on the Irish economy.

So, my reading of this is that Ireland has now played itself into whatever deal it can broker with the IMF and EU and while I may be persuaded otherwise by a credible fiscal plan it is not the actual promise I will be looking at but the assumptions of debt/gdp and nominal GDP growth which underlies it.

Until then, Ireland can continue to heed the old proverb that cash is king; it sure is … until you run out.   (link to full article)