A glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels

For a glimpse of what awaits Britain, Europe, and America as budget deficits spiral to war-time levels, look at what is happening to the Irish welfare state.

A further 17,000 state jobs must go (equal to 1.25m in the US), though unemployment is already 12pc and heading for 16pc next year.

Education must be cut 8pc. Scores of rural schools must close, and 6,900 teachers must go. "The attacks outlined in this report would represent an education disaster and light a short fuse on a social timebomb", said the Teachers Union of Ireland.

Nobody is spared. Social welfare payments must be cut 5pc, child benefit by 20pc. The Garda (police), already smarting from a 7pc pay cut, may have to buy their own uniforms. Hospital visits could cost £107 a day, etc, etc.

"Something has to give," said Professor Colm McCarthy, the report's author. "We're borrowing €400m (£345m) a week at a penalty interest."

No doubt Ireland has been the victim of a savagely tight monetary policy - given its specific needs. But the deeper truth is that Britain, Spain, France, Germany, Italy, the US, and Japan are in varying states of fiscal ruin, and those tipping into demographic decline (unlike young Ireland) have an underlying cancer that is even more deadly. The West cannot support its gold-plated state structures from an aging workforce and depleted tax base.

As the International Monetary Fund made clear last week, Britain is lucky that markets have not yet imposed a "penalty interest" on British Gilts, given the trajectory of UK national debt – now vaulting towards 100pc of GDP – and the scandalous refusal of this Government to map out any path back to solvency.

"The UK has been getting the benefit of the doubt, both in the Government bond market and also the foreign exchange market. This benefit of the doubt is not going to last forever," said the Fund.

www.telegraph.co.uk...

A sign of things to come, more social program cuts and higher taxes. Ah the joys of modern capitalism.

WOW Warren
S & F
Thanks for the eye opening report.
It's all part of that Giant Sucking sound as wealth and power shift away from the EU,UK and US and head east.

Not good news for people on disability like me.They just cut most dental and ophalmology services and i fear its just the begining.

Yea, and they are still on about raising the price of Alcohol even more..

If they do, Im moving to Germany..

reply to post by warrenb


Yeah I can see that happening... Obama turned out to be no better if not worse than Bush..

Did you know State and local governments, forced to close budget gaps by firing workers and shutting schools, pay at least $4.2 billion more in interest than companies with similar credit ratings on Barack Obama’s Build America Bonds.

The $17.4 billion of Build America Bonds sold since April pay an average yield that’s 0.96 percentage point more than corporate securities with the same ratings.

The whole system is skewed to favor "To Big To Fail Banks" while the rest of us are left holding the tab for their multi million dollar office remodels and retention bonuses

Posted from wrong thread -----

It sounds like Ireland is going the way of the U.S.

This is sad, I consider the Irish a very good people, and are surely not the cause of the issues their country is facing.

It is my recommendation that now is the time for a one world currency. We can all share a similar currency, and hopefully start brand new.

Who agrees a single-world currency might fix our problems, and bring us closer to peace?

Originally posted by warrenbA sign of things to come, more social program cuts and higher taxes. Ah the joys of modern capitalism.

Modern Capitalism? Isn't this the fault of the government budget being unsustainable big? I believe that's called socialism.

Originally posted by LeeannaHollandIt is my recommendation that now is the time for a one world currency. We can all share a similar currency, and hopefully start brand new.

Who agrees a single-world currency might fix our problems, and bring us closer to peace?

Apparently you have no idea how monetary policy works and how a single controller of monetary policy would be completely disastrous. A single world currency would be an economic catastrophe.

Well..

Get your sluice out... your gold pan... and head for those lovely little brooks that run down the mountains of Ireland... you may find a gold nugget or two!

All kidding aside... could times like this be engineered in Ireland to gather up support for a Lisbon Treaty yes vote in October?


Lisbon "NO" could hurt Irish jobs - Minister