David McWilliams: Ditch the Euro

[Seos]

Default on private sector debt would be an absolute certainty. But default on state debts would not likely happen.

Our state debts are rather small, all things considered. There are many ways we could contrive to pay them.

So, our state would keep an A rating, even though its citizens would be unable to raise credit for themselves as individuals. Anyone who bought their gaff in the last 15 years would be a defaulter. All of us, give or take.

He suggests the state would still keep it's guarantee for depositors but that we would allow the banks to fail...

[hiding behind a poster]

Can the euro-fans on this site demonstrate a clear strategy to deflate our way out of the mire or a clear strategy to get the ECB to adopt a more aggressive attitude and take inflationary steps.
Failing that everything has to be on the table.

Whether what you refer to as the "euro-fans" have a clear strategy to deflate our way out of the mire is neither here nor there. Fact is that leaving the Euro turns us into North Korea within a week, and even no strategy at all is way better than that.

Yes, it really is that simple.

[hiding behind a poster]

I have always said I support the euro.

No you don't. You've made it very clear you want to break it up.

[hiding behind a poster]

As usual David speaks sense.

So no chance of it happening.

Lets just wait for the IMF.

Relaunch the IR£, and you won't be waiting long.

[FutureTaoiseach]

No you don't. You've made it very clear you want to break it up.

On the contrary, I support the euro as our legal-tender. It's the one-size-fits-all interest rate that's the problem. The ECB should also look at devaluing the euro to boost exports.

[droghedasouth]

On the contrary, I support the euro as our legal-tender. It's the one-size-fits-all interest rate that's the problem. The ECB should also look at devaluing the euro to boost exports.

You can't have a common currency without a common interest rate.

The ECB can't devalue the Euro as it is not pegged to another currency.

[ibis]

I see the ECB have dropped rates to 1%. I thought part of this whole euro argument - as put forward by the Telegraph and Irish economists channelling them - was that (a) low ECB interest rates forcibly produced a housing bubble without any Irish intervention, and that (b) we were now facing 'punitive' ECB interest rates that would slow our recovery.

Where's the housing bubble that the historically lowest ever ECB rates ought to be generating? And since when is 1% punitive?

[FutureTaoiseach]

You can't have a common currency without a common interest rate.

The ECB can't devalue the Euro as it is not pegged to another currency.

Montenegro, the Vatican, Monaco and Kosovo have the euro as legal-tender without the single interest-rate (or a seat on the ECB I admit).

[marmurr1916]

Montenegro, the Vatican, Monaco and Kosovo have the euro as legal-tender without the single interest-rate (or a seat on the ECB I admit).

Is that the best you can do?

[FutureTaoiseach]

It's a fact, marmurr1916.