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November 14, 2010
The communique of the G20 Seoul Summit said that g they had agree to “get the global economy back on the path of recovery.” Good oh.Unfortunately the specifics were lacking as to how they would do this , apart from phrases stressing the importance of “rebalancing” the global economy, “coordinating” policies, and refraining from “competitive devaluations.”
There there was no mention of Ireland, which may need a European ballout. Financial markets were unmoved by the bland promises to deal with imbalances and they now have Portugal in their sights.
There was no substantive progress on anything to do with exchange rates; little substance on the "regulation” of the global megabanks; and few steps on the reform to the governance of the IMF. There was no confronting the power of Wall Street head on, which means breaking up the big banks and imposing hard limits on bank size so they can’t reassemble themselves.
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It appears that the Irish state is making ordinary citizens in Ireland pay for the greed of a political and financial elite (property developers and bankers).
Ireland a faces a future of low growth, high unemployment, a downward spiral of ever harsher austerity measures and mass migration of its youth.