If it did come to it and the saving bonds/certs took a hit eg 50c in the € are you still owed the difference payable in the future?
And printing more money, i.e. creating inflation, has the exact same result as defaulting, i.e. your creditors do not get the same out as they paid in. I believe this is the road that pretty much all central banks are heading down, as governments will keep denying that they are in financial difficulty.As for default how can we be let default if there are funds available in the euro zone I know we'll be strecthed to the limit but when it comes to a default by ireland will destroy the euro (credibilty, contagion)ie it cant happen Euro people would eventually have to print more yoyos if it came to it.
Debt restructuring does what it says on the tin. You take a haircut and you lose a portion of your investment. The Economist magazine said they think the restructure could be up to 70% if it happens.
When, not if, we default, all of the Irish banks will have to declare that they are insolvent and will have to default on their deposit holders.
The amount of liquidity provided by the Central Bank of Ireland is totally unsustainable, when it is realised as a loss then the whole Irish banking system will collapse.
When, not if, we default, all of the Irish banks will have to declare that they are insolvent and will have to default on their deposit holders.
The amount of liquidity provided by the Central Bank of Ireland is totally unsustainable, when it is realised as a loss then the whole Irish banking system will collapse.
I assume you mean paying out 30c on the €? That would be about the same as Russia and Argentina restructured and probably not too far off the mark.
So what is your advice with the above in mind ?
If you agree with Brian, then the only advise is to offshore your deposits.
When, not if, we default, all of the Irish banks will have to declare that they are insolvent and will have to default on their deposit holders.
The amount of liquidity provided by the Central Bank of Ireland is totally unsustainable, when it is realised as a loss then the whole Irish banking system will collapse.
In the above scenario would deposit in non Irish banks within Ireland be safe.
They would be safer. Offshore deposits would be a lot safer.
Grateful if you could explain what would make it safer to have deposits offshore rather than in non Irish banks within Ireland in such a situation? Many thanks.
if things got bad enough , the goverment could freeze accounts registered in this state , regardless of whether this bank was foreign owned , that is a doomsday scenario however
a more likely scenario ( although still unlikely ) is in the event of ireland withdrawing from the euro , all savings held in this state would adopt the value of our new currency
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