Should Ireland Abandon the euro?

[PigPus the Truthteller]

I never said that. But there's two points - firstly, if Ireland were to choose to leave the Euro, it would obviously be with the intention of devaluing a new currency - meaning that even if the Irish central bank didn't officially devalue immediately, the expectation of a devaluation would put downward pressure on the currency, making that devaluation self-fulfilling. And that would proportionately increase our debt-servicing costs. Secondly, it would be obvious that our huge current deficit would make resisting a speculative attack on the new currency impossible, thus making such an attack all the more likely. You won't find one serious economist in the world who thinks any new Irish currency would go any way other than down.



No, I said the holders of subordinated debt should be treated exactly as it says in the terms of that debt. Subordinated debt pays a higher premium precisely because its a risky investment, being a long way back in the queue. There's no point in issuing such debt if you then carry the risk yourself - in fact its a criminal waste of money to do so.

That sounds great, and fools like McDave may actually believe it.

However people like me who have traded know different and you can too if you take a bit of effort to read up on it.

Look what happened to the Real for instance. It climbed 56% against the dollar as this Time article will tell you

Latin America's Peculiar New Strength - TIME

The bottom line is the currency will trade in a direction depending on the actions of the government. If the government adopts a policy of of a stable currency then it will rise relative to the euro because it's supply will be expanding greatly to bail out the "pigs" countries.


Now the debt guarantee is a done deal. It was given as part of the effort to restore confidence when it looked as if the capital flight was going to crash the system. Preventing that happening was the priority that night.

[PigPus the Truthteller]

boo hoo piggy.. Is the criticism getting to you?

FF don't know what to do with the deficit themselves so you really are a troll who is full of it!! The national debt will have to be paid but perhaps we could take back the punt and re-denominate, then devalue.. That would wipe off a few zeros.

There are of course consequences to that solution but then again you didn't ask for them.

As to the deficit (add another €54,000,000,000 to that with NAMA btw), that is easy... get people back to work!! Double benefit there with less social welfare and increased taxes. FF however are doing absolutely nothing about this.

FF are however concentrating on bailing out there cronies at the expense of the ordinary citizenry of this nation.

Give yourselves a pat on the back.

"A lot done. A lot more to do."

The reality is that FF are not powerfull enough to bring in the cuts necessary to balance the budget and neither is FG or anyone else. There is a shortage of 25 billion a year.

Now coming on here and saying that you will get people back to work is Pie in the Sky in the extreme.
For example what would you have done to keep the Dell jobs here. Sreaching like a monkey with no solutions isthe opposition's gameplan

Get real

[PigPus the Truthteller]

Better still, put the troll on "Ignore".

Good, you are one less donkey that I have to deal with, who knows nothing about financial markets