wnyc.org / 93.9fm / am 820

OK. Tony I'm NOT going to blast you because its rude and I only know just a little more than you do. I don't know about the Italians but the Greeks definitely had second thoughts going into this when the EURO finally became a reality in 2000. In fact they want OUT for a few years now. It finally came to a head twice:
1st: around the time of the Olympics
2nd: Christmas time when they had the riots in Athens. Yes it was about a teen who was killed by a cop but it was actually about the economy which is why they were throwing garbage on the Christmas trees.
For Greece, The problems stem as far back with the PASOK party about 25 +yrs. ago. The Greek gov't then did not factor the possibility of a unified Germany and the break up of the Soviet Union within the same century it was founded. This "experiment" has kicked Greece right in the bottomline in their service and hospitality industry where most of their income derives. They miss their tourists especially Americans since they spend the most $$$ because they have the fewest vacations. Germany, England and France pulled her in for their own "aganda" mostly to thumb their noses at the Turks whom they really detest and forsee as a real economic burden which is why they are constantly turning down her application for the EU.. Therfore shut they Turkey out. her human rights violations don't help. The National Kemalist force is still strong. although the latest news on the incarceration of Turkish Nationalists by the present gov't where the Pres. Erdogan and author, Orhan Pamuk are targetted for speaking about the recognition of the Armenian Genocide.

On the point of Irelands social partnership: yes, the agreement was wise to nurture the original boom but, in the last 5 or so years it has become a serious millstone as the government, to their citizen's horror, can't make a move without consulting unions and other powerful groups in society.

Also salary benchmarking has led to overpay of many public servants and skyrocketing costs.

The Irish PM is failing partly because he wasted so much time on these people in 2008.

Fin Keegan
Westport
County Mayo

Can you say anything about Iceland's problems?

A few decades ago a businessman and I were discussing the pro-life issues. And he said that, speaking as a businessman, if there aren't people around, who's going to buy the cars and the washing machines?
Imagine if there were 50 million more young people here today, who would work and buy goods and services. And Europe is in the same situation.

Is Ireland handcuffed by the constraints imposed by the Euro. They had originally benefited from the Euro in terms of lower rates on sovereign debt. They were able to borrow and spend w/o deficits. They were also able to benefit from increases in property values and impose a 12% corporate income tax.

Now because property values are shrinking, revenues are dropping. They are looking at cutting government spending to avoid violating the rules of the Euro. They also can't print money. Moody's is threatening to downgrade the sovereign debt, which will increase the yields.

Do you think there will be a breakup. I think it was a bad idea to invite the Italians and the Greeks along.

However, I am also queasy about the Fed's "quantitative easing," a euphemism for printing money Zimbabwe-style, so in a sense the lack of Federal European government may be something good after all.

I am in the process of buying German Bunds just in case.