Ireland plans drastic cuts to prevent debt crisis

Telegraph:
"Ireland is to demand pay cuts for civil servants and public employees to prevent the budget deficit soaring to 12pc of gross domestic product by next year – becoming the first country in the eurozone to resort to 1930s-style wage deflation to claw back competitiveness."

This information surfaced yesterday, just as Gordon Brown was stating to the House of Commons at PMQ's that his way was the world's view of handling the credit crunch.....
.......and read the following:

The GB book of Fantasy Economics (Revised-frequently-Edition)
First take an economy that has being growing for at least four years,
has low inflation and falling unemployment. Tell everyone that you
intend to sell off the gold reserves to make sure the price you get is
rock bottom,and lose £7 billion. Impose a raft of stealth taxes and
adopt an open border policy, later allowing all new EU State's
residents to come here to work and stay.
Do not under any circumstances adopt a sustainable economic
policy, keep your fingers crossed and hope the music does not
stop. Make the Bank of England 'independent' (cough), and
set up the FSA etc likewise. Now, most importantly spend all
the money you rake in and do not under any circumstances
save anything,in fact you must borrow as much as possible and
pile up the debt, this will be most useful later on. Also adopt
a policy that masks all this, and call it your 'golden rule' - this
can be anything, it's yours and you can make it up as you go
along. If it gets tricky, then keep irksome sums off the balance
sheet. Oh, and yes, always announce that you have abolished
'boom and bust' at every opportunity.
You will notice that about four years into this, the banks have
run out of their own money,and now have to borrow from the
money markets to resell onto their customers, do not be alarmed,
and don't listen to those boring IMF people about it being
unsustainable. Rake in the tax and spend, spend, spend.
About five years after that things may be getting a little tricky,
and that nice Bank of England sends you a BIG warning about a
'Credit Crunch' or something.This is the time to very quietly get
BofE to print shed loads of money,that's what printing presses
were made for. (This will come in very handy when you have to
bail out the banks).
You have a good year to prepare for the first bank to go under,
but dither as long as possible to give the impression that it is a
complete surprise. Get together a group of city Bankers and get
them to devise a rescue plan, you could give them a copy of
a Swedish plan that is in the IMF papers, but get them to water
it down a bit. Don't forget to pass it off as your own work later
on if it seems to work. If it fails blame the USA.
Now the really clever bit - as the economy circles the drain,
and it will, you must now borrow likes there's no tomorrow.
This will not fix the problem, and there may quite a few of
those, but as there is a massive debt anyway what's a few
trillion more. Call it PFI for our children to pay off.
Have a nice day.