It recently struck me that the ideal credit situation for a Eurozone-based person is to borrow in US dollars.
The dollar is hugely overvalued against the Euro, and is falling against it.
However, the ECB is determined to make sure the fall in the value of the dollar is “orderly”. What this means is that every time the dollar falls more than a cent in a day, the ECB will aggressively buy USD.
This guarantees a steady, rather than violent, appreciation in the Euro vs USD.
It seems to me that for a European to borrow from an American is a terrific win-win scenario: the creditor has a borrower who’s an extremely low risk, and the borrower has a creditor who keeps getting cheaper to service as time passes.
So whats the problem with this scenario? Is it impossible for an American to legally loan money to an Irish entity? Or is it simply impossible for the theoretical American to legally enforce the debt in Irish courts?
It seems doubtful that, in such a globalised nation as Ireland, that there’s no legal facility for International debt.
Next: how would you best go about it? Would you set up a company in Ireland which’d have certain assets, which would seek debt from US institutions?