Sir, – I read with interest that the NTMA has started selling 10-year bonds in the international bond market again (March 13th).
Some people view this as an important step on the way back to what is considered financial health and creditworthiness. I am not so sure!
The bond markets have proved themselves unreliable partners, prone to panic and herd mentality, and largely irrational. Are these really the people we want to be depending on for arranging our finance?
There are other models. Japan, for instance, has at various stages financed its government mostly by borrowing from its own citizens, one huge advantage of this is that interest is paid back into the local economy as opposed to posting it abroad each year. Other European countries also sell more debt “locally” through local banks and post offices to citizens. We need more of this in Ireland!
Rather than rushing back into a system that left us high and dry in the past I think we need some fresh thinking and new approaches to financing our government. – Yours, etc,
JOE BERGIN,
Caragh Green,
Naas, Co Kildare.