David McWilliams: Ditch the Euro

[Middleaged]

Decklanders who read

Brilliant oxymoron........

[hiding behind a poster]

We have a currency we have no control over. Remember 4 countries,

If we had our own currency, we'd have no control over that either. That was proved in 1992/3.

[advertismo]

What is the collective noun for fool's, herd,gaggle,heap,flock,school???

Ship.

[dmc444]

I love these Irish Nationalists- Who have this little Island mentality sitting singing Us Against the world!.

They want the leave the Euro and create a new currency which would tie us in with the British pound and they will scream and moan about British imperialism.

You cannot have it both ways, We are either in Europe or we can go back to being the backgarden of Britian

[hiding behind a poster]

Relaunching the punt carries major risks but so does staying where we are.

Let me just clarify the risks involved in relaunching the Punt. Its equivalent to flying an aeroplane straight at the heart of the sun, with no control of height or direction, and an unlimited tank of fuel.

In other words, all downside risks, zero upside. It really is that simple.

[draiocht23]

Prof. David McWilliams writes an excellent piece arguing for the relaunch of the punt. He amkes a number of superb points.
1- The "need" to stay in the euro is similar other failed totem poles like "property only goes up", "soft-landing" and "banks well capitalised".
2- We cannot deflate our way out of this mess.
3- Anyone who questions a totem pole is first ridiculed and then viciously attacked before it accepted they were right all along.
4- It would require brave decisions like reneging on the state gaurentee of interbank lending and big investors would get an almighty kick in the cojones.
5- There would be a rapid devaluation of the new punt but that would immediatly make us competitive again.
6- We could use quantitative easing to lift the liquidity trap. Inflation would have to be carefully managed.
7- Many countries have used devaluations successfully before.
8- Even Iceland has now restabilised.
9- The banks would fold, but why not let them and gaurentee personal deposits up to a certain level and start new banks.
10- The price of land would collapse but it would find its level again before too long.
11- Unemployment would fall dramatically as it did in scandanavia and asia.
12- Ther would be a flight of capital but it would return once the economy settled.
13- Middle aged savers would be hit very hard but young people with debts would win bigtime.
14- Before the 1993 devaluation there was all sorts of threats of economic disaster which never materialised.
15- On our current trajectory we are facing slow strangulation.

Well he is a professor of economics so knows what he is talking about. Point 15 is the most telling. By staying in the euro we have a large degree of certainty and stability but that just means a slower death. Its time for some radical solutions.

Ditching the euro could boost our failing economy - Analysis, Opinion - Independent.ie

1. How is the need to stay in the Euro in any way similar to using platitudes like "soft landing".
2. Agreed.
3. Sounds suspiciously like point 1
4. How is reneging on the State guarantee brave? It would ruin us.
5. Yes, our export market to the UK would be competitive, but what about the rest of us. I'd rather not get paid in monopoly money.
6. So, we could print loads of monopoly money. Yipee!
7. No other country has ever opted out of a pan-European currency before. Let's not pretend there's a precedent for it because there isn't.
8. Yes, Iceland has stabilised. After the IMF went in and stabilising after everyone is ruined isn't really a positive.
9. If only life was one big etch-a-sketch and we could make all the banks disappear and then start again. Oh, hang on. What's that about a real world? If we did that, why would any foreign investor ever trust our financial institutions ever again?
10. The price of land has collapsed.
11. I fail to see how this doomsday scenario would lead to an increase in employment.
12. Why would capital return to a tiny country on the periphery of Europe with a worthless currency? Investors are playing it safe at the moment, or hadn't you noticed?
13. Screw the middle-aged?! What a great election campaign mantra. I bet all of our predominantly middle aged politicians, and citizens, really go for it.
14. There is no possible way a comparison can be drawn between devaluing the punt in 1993 and opting out of the Euro now and throwing ourselves on the mercy of...well, everyone.
15. That's because of the policies that have been, and are being, pursued by this government.

[hiding behind a poster]

Sinn Féin did actually warn about the dangers of the Euro. Too bad everyone else is in the slow learner lane and has learnt 10 year too late!

Factual, your claim has been based on the fallacy that an Irish government or Irish Central Bank could control the value of its currency. And this is simply not the case, however much Sinn Fein might wish it to be so. In fact its notable that Arthur Morgan, one of the few senior figures in your party who actually understands economics, has never made the claim you're making.

[droghedasouth]

Why doesn't David McWilliams stand on this platform in Dublin South?

I am sure His Excellency President Robert Mugabe would have no problem with him standing for the Zanu-PF party.

[hiding behind a poster]

Why doesn't David McWilliams stand on this platform in Dublin South?

Because its even dodgier to stand on than the decking constructed by his beloved Decklanders.....

[Lloyd-Apjohn]

There are loads of things the government can do in Ireland to tackle things. All the issues about competitiveness are 100% our own fault and under our control. Get those sorted and the rest will sort itself. We were pretty useless running things when we had control of everything anyhow.

As long as there are idiots who would still vote for FF then we're not fit to run anything.