Honohan is accused of 'costliest mistake' ever made by an Irishman.
As Ireland edges closer to bankruptcy, and to the prospect of debt default, Morgan Kelly, the radical economics professor, has put forward a dramatic solution for "national survival" which he says would require that Ireland walk away from the EU-IMF bailout.
In an analysis which has resonated with the public, Professor Kelly rounds on the governor of the Central Bank, offers new insights into the bailout negotiations, says the last Government was "spineless", and is strongly critical of new Government policy, which he describes as "lying on the ground with a begging bowl and hoping that someone takes pity on us".
His latest, lengthy prognosis has provoked a huge reaction not only in media and politico/economic circles, but, judging by the reaction on social network sites yesterday, throughout a by now fully engaged society which seems to have been moved to adopt his views, once considered maverick, as a way forward.
Professor Kelly of UCD said that for Ireland to walk away from the bailout, the Government is required do two things: disengage from the banks, and bring its budget into balance "immediately".
He admitted that while his solution was "not painless" it was the "only way" for Ireland to disentangle itself from the "loan sharks" of the European Central Bank who, he said, were intent on making an example of the country to "frighten" Spain.
In a damning critique, published by the Irish Times yesterday, Professor Kelly reserved his fiercest criticism for the Central Bank Governor, Patrick Honohan, who he said had assumed de facto control of Irish economic policy.
But he was no less critical of the last government, which he said had appointed people to negotiate with the EU-IMF who, he said, had displayed "strong elements of StockholmSyndrome" to side with the ECB.
And he was fearlessly withering of the new Government's current policy, which, he said, was "lying on the ground with a begging bowl and hoping that someone takes pity on us", a position which, he said, did not make for a particularly strong negotiating position.
Source and full article: Irish Independent, 8 May 2011
