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Weekend funny

Ireland is so screwed it’s not funny.  It’s caught in a deflationary trap with no way out.  The govt tries to be ‘responsible’ by contracting spending.  Bond yields rise as international investors sense an increase in default risk.  Higher interest rates further contract the economy.

Nasty.

And there is no solution to structural unemployment other than an extended period of adjustment, dislocation and crisis.  And no one wants to go through the pain.  So the pain will increase, just not all at once.

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Categories: Miscellaneous Musings
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