Irish national debt per person highest in the eu

Protocol

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The ECB has done a fairly good job of anchoring inflation expectations at around 2%.

Actual inflation in Ireland has been below 2% for much of the last few years, as the weaker GBP has helped keep a lid on imported goods prices.

The price level in Ireland is already 125% of the EU average.

We do not need higher prices here, they are too high already.

Rents, legal fees, medical fees, insurance, energy prices, etc. are all too high already.

We need reforms like more competition, legal reforms, that will drive down these costs.

We need slow and steady rises in wages, based on productivity, combined with falls in the costs of overheads, like those listed above.

This of course means a fall in the excessive profits earned in these sectors.
 

Protocol

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Paying down the debt is futile. Bringing the debt to a point where it is manageable is the key.

Running a small budget surplus, not running a deficit, and not adding more debt, makes the debt more manageable.

Say 1% of GDP, approx 2-3bn.

It will also reduce our interest costs.
 

BilliamD75

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Hi protocol you might be talking about demand inflation which is very high in Ireland but so is asset inflation however the real issue in Ireland is currency deflation which is the real issue, people in the private sector have to work harder for less while assets like property are out of reach, inflation in these say asset, demand and currency should rise in tandom but we do not own the currency, for those of us that remember it used to be two deutsch marks for a punt now its equilibrium, who gains. I would be interested in knowing how the ecb anchors inflation
 

BilliamD75

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The ntma has come out today and stated that Irish debt will be more expensive in 2019 because of brexit (good one that) and the EU has rejected the Italian budget, bond yields are going to rise, slowly at first and excelerate, who is going to pay for this?
 

Purple

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The ntma has come out today and stated that Irish debt will be more expensive in 2019 because of brexit (good one that) and the EU has rejected the Italian budget, bond yields are going to rise, slowly at first and excelerate, who is going to pay for this?
The same small group that pays for everything else.
 

joe sod

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I see that throughout the pandemic the ECB were the main buyers of our debt, they bought 70% of the bonds issued by the Irish treasury. This is interesting in that Irish bonds still offer a positive interest rate yet private investors would rather buy German or Dutch ones even at negative interest rates. We would be paying much higher interest rates except for the ECB.
 

Protocol

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I see that throughout the pandemic the ECB were the main buyers of our debt, they bought 70% of the bonds issued by the Irish treasury. This is interesting in that Irish bonds still offer a positive interest rate yet private investors would rather buy German or Dutch ones even at negative interest rates. We would be paying much higher interest rates except for the ECB.


The National Treasury Management Agency said it sold €1.25 billion of 10 and 20 year bonds in a dual auction today.

The auction was at the top end of the NTMA's €1 billion to €1.25 billion range.

The NTMA has now raised €16 billion of its €18-20 billion target for the year.

The 10 year bond was sold at a yield of 0.02% and the 20 year bond at a yield of 0.55%.

Offers for both bonds were oversubscribed.



Irish bonds have positive yields, yes, but very low positive yields.

Irish bond yields are higher than DE and NL yields, yes, as expected.
 

joe sod

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Irish bonds have positive yields, yes, but very low positive yields.

Irish bond yields are higher than DE and NL yields, yes, as expected.
But you are not denying that the reason Irish bond yields are so low is because the ECB has bought 70% of our pandemic debt as per the independent article I posted, surely that is exceptional
 

RedOnion

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But you are not denying that the reason Irish bond yields are so low is because the ECB has bought 70% of our pandemic debt as per the independent article I posted, surely that is exceptional
You realise the ECB are also buying German bonds?

As are end of August, they hold 618bn German bonds, and 40bn Irish.
In the month of August, their net purchase of German was 3.9bn, and Irish 0.2bn.

So, by the same logic, German bonds yields are low because of ECB purchases.

I don't think anyone can deny that Eur yields are low across the board because of ECB policy.
 
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joe sod

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@RedOnion yes I know they buy bonds of all the euro countries, they also hold gold, that's more to do with stabilizing the currency than anything else, if they were only to buy Irish , Italian and Greek bonds the euro would be in freefall and we would have run away inflation, the German economy is the whole basis for the relative stability of the currency.
 
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