A temporary new Euro currency that CAN be devalued ..

[aidanodr]

Hi Guys,

Just listening to Pat Kenny and heard an idea I mention below which I brought up in another thread at politics.ie way back:

http://www.politics.ie/1378672-post14.html

"With great respect, its this preaching in general of NOT POSSIBLE, WE CANT DO THIS or THAT, ITS Black OR its White - that right now might be too narrow in these challenging times. Instead of NOT POSSIBLE I would challenge you by asking is their a mechanism OR lateral approach that would allow devaluation inside the Euro? Thinking outside the box a little, instead of NOT POSSIBLE?

I DO NOT WISH TO LEAVE Europe OR the Euro - But Im also pragmatic and did say NEEDS MUST might have to prevail if all else fails.

The main idea - What about another temp parallel currency in the Eurozone controlled by the ECB also - one that is aligned with the euro initially, but CAN be devalued. Countries in trouble can opt in / out in a controlled fashion."

The last time I proposed this - as you can see above - I was Poo Pooed and told "NOT POSSIBLE, WE CANT DO THIS or THAT". Please dont do this here, I am just proposing the above and wondering if their is anyway THAT IT CAN BE DONE ..

Aidan

[patslatt]

Hi Guys,

Just listening to Pat Kenny and heard an idea I mention below which I brought up in another thread at politics.ie way back:

http://www.politics.ie/1378672-post14.html

"With great respect, its this preaching in general of NOT POSSIBLE, WE CANT DO THIS or THAT, ITS Black OR its White - that right now might be too narrow in these challenging times. Instead of NOT POSSIBLE I would challenge you by asking is their a mechanism OR lateral approach that would allow devaluation inside the Euro? Thinking outside the box a little, instead of NOT POSSIBLE?

I DO NOT WISH TO LEAVE Europe OR the Euro - But Im also pragmatic and did say NEEDS MUST might have to prevail if all else fails.



The main idea - What about another temp parallel currency in the Eurozone controlled by the ECB also - one that is aligned with the euro initially, but CAN be devalued. Countries in trouble can opt in / out in a controlled fashion."

The last time I proposed this - as you can see above - I was Poo Pooed and told "NOT POSSIBLE, WE CANT DO THIS or THAT". Please dont do this here, I am just proposing the above and wondering if their is anyway THAT IT CAN BE DONE ..

Aidan

See my plan for temporary exit from the euro at
http://www.politics.ie/economy/41448...troke-pen.html

[Thac0man]

All that sounds nice. But the shock due to the uncertaintly generated to the markets, especially at this time could be lethal. We also ignore the Euro foreign currancy reserve held by our non-EU trading partners.

[supamolli]

One major problem with all this is that everyone's mortgage debt/ credit card debt etc will still be in euros. That's not even talking about the State's debt.

So all our workers are going to agree to being paid in a currency that is worth say 20% less than what they are getting now. Why go through all this uncertainty of leaving the euro when you can achieve the same by cutting wages by 20%?

[thegreenman]

this is all being done by disign.they will try bring in the new world order no matter what we say.its called problem, reaction, solution. you create a problem wait for a reaction and then offer your solution.this plan has been in the wings since after world war 2. take back irish backed money, take back the irish natural resources. and then we might have a free life with jobs that we create. is this not what the irish constitution says. irelands resouces for the irish people. support shell to see.and take back or rights

[QuizMaster]

One major problem with all this is that everyone's mortgage debt/ credit card debt etc will still be in euros. That's not even talking about the State's debt.

So all our workers are going to agree to being paid in a currency that is worth say 20% less than what they are getting now. Why go through all this uncertainty of leaving the euro when you can achieve the same by cutting wages by 20%?

This is something I wondered about.
My mortgage was in punts. When the euro came in, they converted it to euro. Surely if we change currency again, to say the used sheet of kleenex, my mortgage should be denominated in the new currency?

I hope so, I earn sterling.

[setanta]

"With great respect, its this preaching in general of NOT POSSIBLE, WE CANT DO THIS or THAT, ITS Black OR its White - that right now might be too narrow in these challenging times. Instead of NOT POSSIBLE I would challenge you by asking is their a mechanism OR lateral approach that would allow devaluation inside the Euro? Thinking outside the box a little, instead of NOT POSSIBLE?

You mean if you wish really hard enough the impossible might just come to pass. We are way past the time when Peter Pan and Tinkerbell could offer options to help us build our way out of this recession, even though the government still appears to take its cue from JM Barrie.

You can't part-float a currency or part-devalue one. Wise up.

[Slippers]

There is already a group working on a compliment to the euro.

www.feasta.org/documents/liquidity_network/2009_liquidity_network.html
www.feasta.org/forum/viewforum.php?f=51
www.feasta.org/forum/viewforum.php?f=13

This pdf discusses what I think is a simpler improvement - taking current accounts off bank balance sheets. Treat them as electronic safety deposit boxes.

www.soziologie.uni-halle.de/publikationen/pdf/9903.pdf

[seabhcan]

This is something I wondered about.
My mortgage was in punts. When the euro came in, they converted it to euro. Surely if we change currency again, to say the used sheet of kleenex, my mortgage should be denominated in the new currency?

I hope so, I earn sterling.

When the euro was set up the punt was abandoned. What is being proposed here is to set up a new currency while the euro continues to exist elsewhere.

Im sure you'd have no problem with your mortgage being converted to toilet paper currency, but you'd fight to keep your savings in euro.

Thats the basic problem. Its not possible to force people to convert to a new currency while the old one continues to exist - its not legally possible and its not physically possible. People would do everything in their power to withdraw or move their money from Irish banks before change over - and so those banks would collapse.

What you'd end up with is no irish banking industry, the public service being payed in toilet paper and the real economy continuing in euro.

In Russia in the 90's the economy became defacto dollarised. 10 years later it still is even though the rouble is quite stable. People refuse to change if they have the choice, and the options for forcing them are quite limitied.

[grainne whale]

When the euro was set up the punt was abandoned. What is being proposed here is to set up a new currency while the euro continues to exist elsewhere.

Im sure you'd have no problem with your mortgage being converted to toilet paper currency, but you'd fight to keep your savings in euro.

Thats the basic problem. Its not possible to force people to convert to a new currency while the old one continues to exist - its not legally possible and its not physically possible. People would do everything in their power to withdraw or move their money from Irish banks before change over - and so those banks would collapse.

What you'd end up with is no irish banking industry, the public service being payed in toilet paper and the real economy continuing in euro.

In Russia in the 90's the economy became defacto dollarised. 10 years later it still is even though the rouble is quite stable. People refuse to change if they have the choice, and the options for forcing them are quite limitied.

Time to open a bank account abroad so ?