So how do we protect our savings against devaluation if we leave the Euro ?
If your deposits are with say, rabodirect.ie, and we switch to the punt....does your savings switch to the punt also or stay in euros?
Can someone please let me know how our savings would be devalued? Even if we had to go back to our own currency and a euro was worth, say, 5 "punt nua" surely for every euro I have in saving they would have to give me 5 punt nua. I should still have the same euro equivelent when the currency comes into effect. I know after this we run the risk of exchange differences, but the immediate effect should be the same. Am I missing something here?
Can someone please let me know how our savings would be devalued? Even if we had to go back to our own currency and a euro was worth, say, 5 "punt nua" surely for every euro I have in saving they would have to give me 5 punt nua. I should still have the same euro equivelent when the currency comes into effect. I know after this we run the risk of exchange differences, but the immediate effect should be the same. Am I missing something here?
On another point would it be madneess for the Irish state to come out of the Euro and devalue the Punt Nua given that we have massive debt in Euros which would only increase if the Punt Nua was devalued? Perhaps the only way this could happen is in the event of ireland defaulting?
don't kid yourself galleryman. we are in the Euro - thats why the corp tax rate is so attractive. it's not the cailins at the crossroads.
Europe won't kick us out if they ever want to get the €90Bn bailout package back.
europe needs ireland to survive to stop this spreading further. They dont give a hoot about ireland only saving the single currency and stop the contagion spreading to banks abroad. The markets have already written us off to default and it may be enivable as the debt levels and the level of austerity proposed is simply too big and too much. It's akin to taking a baseball bat to a child and expect it to get up and carry on. The markets know this and europe doesn't care.
If this goes onto portugal (and it will) then spain is next. Spain makes up 10% of the european economy, so if this happens it could be the begining of the end for the euro. The ecb need to have a massive quantitive easing process to recapitalise the banks in this event if not already.
They are trying to avoid this at all cost.
If the euro ends we will have to devalue over night. (if you have 100 today it may be 70 tomorrow). It's not an exchange rate.
We probably would recover quicker from a default than what is been lined up for us. This is going to be spoken about more over the coming days/weeks.
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