The Euro - PIGS to fly?

[ivnryn]

The issue is that people are more accepting of a drop in salary due to an exchange rate change/devaluation than they are of a direct drop in salary.

What about instead of leaving we introduce a "parallel" currency at a fixed rate of the old PUNT exchange rate (in the other direction). You give the central bank EUR1.27 and they give you 1 new punt. Similarly they do the reverse. The Euros would be stored so that there is no risk that they wouldn't be able to pay back at the fixed rate.

If you earned EUR 30k, your new salary would be IRP 30k and shop price displays would be considered to be in IRP.

The effect would be that the economy would snap to the new rates. It could then readjust, but shops would have to manually change all prices if they want to return to the old Euro prices.

Ofc, bank accounts would still hold Euroes (or IRP converted at the fixed rate) and mortgage payments would rise relative to salaries. This is necessary to prevent people withdrawing all their money from banks.

[mccafferty cat]

If we hadn't joined the Euro.
The punt would still have had to track the Euro as the Danish Korona has to

Exactly. We would effectively have been back to the 1950s and 60s, (where we had to peg our currency against Sterling) and where a foreign governments would decide our currency level and interest rates, and we would have Zero say in it.

McWilliams - as a foppish gentelman's club West-Brit nancy-boy - obviously wants our currency to be dominated by the UK other countries, without our input

[seabhcan]

I was wondering about this the other day.

I have a reasonable amount of cash in an Irish bank account. I am non-resident.

If they did revert to the Punt, what would happen to my savings? I'm guessing I'd be screwed.

Would we be given enough notice so we could withdraw our Euros and shift them to a non-banana republic?

If not... I'd be on the first plane home... and showing up at the Dail for some payback.

That is the crux of it. It is currently free and instant to move your money out of Ireland within the euro, and if you have your money abroad you can still access it instantly and freely through the ATM network, and still pay your bills.

If the gov announced they were leaving the euro in the morning, by the afternoon the last euro would have left Ireland's shores.

[ivnryn]

I was wondering about this the other day.

I have a reasonable amount of cash in an Irish bank account. I am non-resident.

If they did revert to the Punt, what would happen to my savings? I'm guessing I'd be screwed.

They would presumably be converted to Punts at the official rate (1 Punt = EUR1.27) and then within hours (minutes?) of the Punt being floated, it would plummet in value relative to the Euro.

Would we be given enough notice so we could withdraw our Euros and shift them to a non-banana republic?

Well, problem is if they give notice, then everyone would move their money out of the Irish banks and they would all go bankrupt.

[seabhcan]

Well, problem is if they give notice, then everyone would move their money out of the Irish banks and they would all go bankrupt.

There's no way they could do it fast enough. Even the hint that they were thinking about would bankrupt the country instantly.

Remember, you can move euro freely around the eurozone, and there is no risk involved.

[youngdan]

Wake up ye dolts and grow a pair of balls. The titanic is sinking and ye are afraid to get in a lifeboat

[seabhcan]

Wake up ye dolts and grow a pair of balls. The titanic is sinking and ye are afraid to get in a lifeboat

We're in the lifeboat - the euro - and these ejits are proposing we go down with the ship.

[Digout]

Every currency is donald ducked, we are facing worldwide meltdown. Capitalism has failed and expect civil disorder soon.

[Sucker Punch]

Wake up ye dolts and grow a pair of balls. The titanic is sinking and ye are afraid to get in a lifeboat

Hey YoungDan, what are your predictions in the short to mid-term for the Euro? In your opinion is a drop in its value such as what has happened to sterling and the dollar likely soon? If so is this not the answer to our prayers?

Also, Is there a tipping point where It would seem obvious to one and all for Ireland to "get in the life boat" as you have put it?

[Ramon21]

Hey YoungDan, what are your predictions in the short to mid-term for the Euro? In your opinion is a drop in its value such as what has happened to sterling and the dollar likely soon? If so is this not the answer to our prayers?

Also, Is there a tipping point where It would seem obvious to one and all for Ireland to "get in the life boat" as you have put it?

If he knew that he would be a trillionair.
I trade forex but only stay in a trade for max 1 day.
Those trades are good enough for me.

The euro will reach parity with the pound (atleast).
Let's just hope it won't go to far, is bad for exports.
But for now the uk is going bankrupt.