The blogosphere Morgan Kelly
Published 08/05/2011 | 05:00
ASKED to explain his comments in relation to Central Bank Governor Patrick Honohan in relation to the matter of the EU/IMF bailout, Professor Morgan Kelly did not back down from his assertions.
"What I think I've written in the article is basically what I want to say and I don't think I really want to say anything else on that. I just want to outline the mistakes that have been made and that's it. But I wouldn't have anything further to add to that," he said at his home yesterday.
When reminded that he had not offered a solution to Ireland's economic difficulties in his last commentary, which had been published in The Irish Times on November 8 last, Professor Kelly said he had at the time been asking if there was a way for Ireland to avoid a bailout, and he believed there wasn't.
"Well at that time we were talking about was there a way to avoid a bailout and I didn't see that there was. And it turned out, no there wasn't. But a week after I wrote it, the bailout happened."
Commenting on what he believes needs to be done now, he said: "We're now in a situation where there is a bailout that I think is going to destroy us. You could say that ultimately the bailout is a stopgap measure. It's not intended as a bailout. I think it's very much a stopgap measure within the eurozone, so I think we do really need to get out of it.
"We're just going to end up with too much debt. We've basically been saddled with all of the bank costs, which are just way beyond us. The only conceivable way I can think of getting out of it is if we can balance our own Government budget where we don't have to borrow at all.
"Then we are in a situation where we can just can walk away from it. It will be a very difficult thing to do. It would mean a big increase in taxes and increases in the cost of spending, but the alternative is far, far worse. As I say, I wouldn't be optimistic of it happening, but it's where I think we're at."
His latest pronouncement has also set the online chattering classes all a-twitter.
"Morgan Kelly is a genius," tweeted Independent TD for South Dublin Shane Ross yesterday. "His Irish Times piece today should be compulsory reading for Michael Noonan and the Mandarins."
"Morgan Kelly's brilliant critique of the Irish 'Insiders' exactly what I was saying in Outsiders," said David McWilliams.
"Morgan Kelly makes The Road look like The Wizard of Oz. -- 'AIB and BoI run by faintly dim former rugby players' -- funny and terrifying," said RTE personality Ryan Tubridy.
On RTE radio yesterday economist Moore McDowell said: "I agree with the fact that there is a huge debt problem and I agree that that problem may result in Ireland having to default if nothing else happens.
"The difference is I place a significantly different interpretation on the likely outcome as a consequence of that."