I, for one, look forward to our new Bottle cap currency.
I wonder what hes trying to short?
To be replaced by what? Funded by what? Exporting what to where?
One word Standard Bank Plc - Iceland!
A ludicrous comment, leaving aside the enormous difference between a bailout and and pullout. In predicting bailouts he’s predicting the past. In predicting pullouts he’s losing the plot.
Standard Bank plc, I’d say.
South African Investment Bank? So what…
Given the recent UK budget I question the ability of Her majesty’s government to service their exchequer borrowing requirement.
Unlike our government Gordon Brown has no-one to warn him of the folly of turning his currency into toilet paper.
Little Britain and the English peso.
Maybe it’s time to move the savings abroad. Just in case…
It’s also akin to saying “the banks are not well capitalised” or “this is not the cheapest bailout EVAR”
It doesn’t really matter who is saying it, it’s who is listening that’s important.
It is obvious from the dept of finances rapid response that they take any talk of this nature seriously and will try to nip it in the bud.
AEP says it, McWilliams says it… A concert of clowns…
The answer is so obvious Im surprised I havent heard it here yet. If we left the euro there is only one place we could go - STERLING!
The republic of ireland used sterling until 1979 and it would be easier to go back to it than start a new currency.
But, Sterling is set to join the Euro, n’est pas?
I think the UK would peg to the USD before theyd use the euro. Euroscepticism is growing in the UK, not shrinking.
There is still no money out there, despite all the money printing on both sides of the Atlantic (see US numbers below). The only hting the UK has going for it is that it has it’s own currency and the resultant flexibility of devaluation, inflation, and money printing.
Wake up and smell the coffee.
How is Ireland going to get out of the fix it is in?
The present strategy is to cut public spending (and shrink the economy) and hope that a world recovery will lift Ireland out of its present situation. The world economy is trundling along and isn’t going to grow rapidly for some time.
Irelands problems all boil down to two factors, debt (personal and public) and high costs of doing business.
You can suscribe to the zombie school of economics as per Lenny and the boys and hope that somebody is going to bail the country out of its present mess (possible but unlikely) or bite the bullet and sort out the fundementals.
The latter is a tougher choice but at least you know where you are going and are dependent on yourself to get there.
Leave the euro with the new punt on parity level. Announce that bonds are going to be repayed in punts. Let the market decide what they want to do. Support the punt and retain value, devalue the punt and decrease the bond returns. (We are fucked totally if they value the punt more that the euro). The probable scene is devaluation.
Devaluation will lead to inflation which could be managed by a competent central bank. This would lead to a relative reduction in debt and an improvment in competetiveness. It would result in a decrease in peoples net worth vis a vis their property and savings but it would be a way out.
The alternative is carry on and wait for ECB intrerest rates to rise, more jobs to go, further PS pay cuts and then watch the pain.
Nah Enoch, we cannot repay shillings with shallings, tings with tangs, apples with oranges, (unless oranges are in demand).
You have to pay back what you borrow. Beads aren’t going to do it.
I have a bug with suggestions that you cure your debts with leaving the international currency system, ie the Euro or Dollar. It’s stupid to put it mldly.
You know, you have to repay at the end of the day. Fiddling about with beads and bananas and apples and oranges, is just piddling about. We’re not the United States, we can’t do that.
Okay, I was just at a “buy my book” night by the floppy one and I have to say I am won over to the idea of a new currency. It breaks down like this; we introduce the lennie penny or bertie bond or whatever, we’re still in the E.U. but not the Euro. We produce like like fuck the products we already produce but in bigger quanitities with a devalued and cheaper work force. life is grim for a while but not as grim as the current five year japanese implosion.
Events collude in our favour by the flight from the euro, the euro follows the dollar down the printing press path and although our debts are in euros, a depriciated lennie penny paying debt to an inflating euro blows wind in our sails.
I’ve had a few Erdingers so I’m a bit off my recollection skills but i think i caught the drift.
My only concern is will the general sheeple understand what needs to be done and get behind it. I believe that NAMA is more reason for smart money to avoid Ireland. Once savings are spent this place will be in free fall and the markets sense that.
What’s stopping us “producing like fuck” the products we currently produce, JUST PAY OURSELVES LESS.
Listen, this whole argument about staying in or leaving the Euro is a question of purchasing power. As soon as our new punt is issued it will instantly lose value against all major currencies. Yes this does achieve the pay cut (both Private and Public sector) that we need to make ourselves more competitive without requiring negotiations with Unions etc but we will have a much lower standard of living as import prices rocket to the moon. Expect fuel and maybe even some food shortages as foreigners refuse to accept our new currency due to its rapid decline. What interest rate would be required to put a floor under this currency, 20%, 30% who knows. Also, the capital flight from this country just prior to the introduction of the new currency would be massive.
You’ve lost me here, so the Euro devalues like mad. I thought it was a strong Euro that was hurting us, so which is it. Is it that we want to devalue even faster. Are you saying that at some point the Euro will be devaluing faster than a new Irish punt (lennie penny) so we can pay back our debts easier. Aren’t we now back in the same problem of being uncompetitive vs the rest of Europe with our overpriced currency.
Sorry but your argument makes no sense, firstly you say that we’re uncompetitive due to being in a strong Euro, next you saw that the way to get out of this is to leave the Euro so that we can end up with a stronger currency to easily pay back all of the debt.
Am I the only one that sees this contradiction?
For me, this countries problems are symbolized best by the current state of Aer Lingus.
- Costs outstripping revenues (imports vs exports)
- Uncompetitive due to the high cost of employee wages and benefits (Public sector)
- Attempting to negotiate with employees regarding pay floundering.
- Company needs strong leadership to reduce pay, reduce workforce and become more efficient so to be able to compete in Global marketplace. If not company will be bankrupt in 1 year or so.
Would you bet on Aer Lingus turning things around. Not sure if I would.
One last thing, the first thing you need to launch a new currency is
- Gold reserves
- Reserve of major currencies (USD EURO YEN)
We’ve got neither. Where do we get this when we’re already broke.
Ireland, Greece May Leave Euro, Standard Bank Says (Update2)
**To contact the reporter on this story: Bo Nielsen in Copenhagen at firstname.lastname@example.org
Last Updated: December 11, 2009 09:53 EST**