Irish Property Market chat II - *read mod note post #1 before posting*

Governments worldwide never pay off debts

Its all built around the myth of perpetual growth, just keep rolling over your debts, and as your GDP (and revenue) grows and debts stay the same, in relative terms they have decreased.

It is all a pyramid scheme really, based around continuous growth in population and incomes, and when it ends it will be absolutely disastrous but sure look - thats life. If we were in charge of our own currency it would be a different story, you control your debt to a higher degree and so long as you arent run like a basket case, then debt management is OK. Common EU currency hampers our abilities, we cant inflate our own currency and devalue debts because we are at the whim of the ECB (and Germany).

We won't be paying back our national debt, ever. It is as simple as that. We will issue long term bonds that the ECB will buy in the event that the piper is due to be paid. As you have noted, it is insanity to even argue for fiscal prudence in the context of our ridiculous national debt - it is so unfathomably large that people talking about running balanced budgets and trying to service it need to rip up their old school/college textbooks as the old rules no longer apply.

They're probably reading these statistics and positioning for a potential recession;

Why would we repay our own central bank (the ECB)? That would be a guaranteed, self-inflicted economic crash if we were scrambling to repay ourselves. It's totally hypocritical and nonsensical to back the QE policy of the ECB and at the same time worry about our national debt - the ECB will just print more money and buy new bonds for those due to expire. This is the natural progression from their magic money printer approach. Again, it comes down to the actual practicalities involved in attempting to repay existing debt, it's as close to impossible as you can get.

And the result of this will be further inflation and higher interest rates, rinse and repeat and we will be further in debt.

Probably the main concern with ireland is the over reliance on MNCs. As long as they keep growing and bringing in the corporate tax and huge wages then prices will only go one way. If changes come - a slowdown, changes tax laws etc then who knows what happens. But many have waiting a long time for change here.

so the whole of Europe are seeing inflation due to the continuation of printing of money to flood the continent with cash. Its only logical its caused inflation.

That's not true.... you need to take into account that most of the gov debt is fixed for up to 10 years and the only additional servicing cost would be on any new debt issued. The bond issuance for 2022 is about 11bn so in your scenario of a 2% rise it would equate to an additional 200milion in servicing costs.

In all likely-hood rates will increase by 0.002% (This is what the market is projecting at the moment) and it would equate to a 20 million increase in servicing costs for 2022

If we are the leech at the edge of Europe then what is France? we have a similar bond spread which means that investors see the same level of risk in Ireland as they do in France.

Yes that is correct but the average maturity of the debt is 10/11 years.

Had a look at his site there and Instagram. He's got decent following now and is obviously trying to monetise it all. Complete spoofer.

I think he is doing a great job. We have enough negative nancys who do f'ck all. At least he is bringing awareness to the issue. He a teacher so let him make few bob while he at it.

From to-day's Indo. What an idiotic headline (I didn't read the text after that):

The headline implies that "cuckoo funds" (great piece of name-calling) are effectively paying way over the odds for property. Are they that stupid?

Ironic Quote of the century

Tom Parlon 08 February 2022. The hard shoulder on Newstalk

The irony from a man that has made a career out of lobbying for handouts to drive up the price of new build houses

Tom was speaking about the new Seai grants to retrofit housing. One suspects that this may pull demand away from new builds towards empty doer uppers. The construction industry federation have been rattled which is a good sign.

Kudos to the green party, you may have stolen Sinn Feins thunder