Comments on: Should Ireland default and devalue? http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: JoeyDawson http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21183 Mon, 22 Nov 2010 14:17:07 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21183 Honestly, unless individual sovereignty is abolished (which will never happen without riots and war) and a single government rules all of Europe with a single budget (another fairy tale that will never come true), the concept of a single currency is simply unworkable.

So, perhaps the Euro should disintegrate and let individual countries have their old currencies back. The bail outs cannot continue forever. While payments and trade have clearly been easier under the Euro, who honestly ever believed a single currency would ever work without control of individual EU nations’ budgets? Would France dictate the annual budgets for Italy? Should Germany tell Greece their annual budget is too large? Of course not. So why then should Germany bail out anyone, simply because she has managed her balance sheets properly?

Let’s face it – the modern notion of a single currency working without complete control of all of annual budgets is simply ridiculous.

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By: anonym0us http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21175 Sun, 21 Nov 2010 20:35:00 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21175 What would happen if you give a credit card to a teenager?
Most likely, the teenager would first lie to you about being prudent, then end up in default.
So, whos fault would that be – yours or your teenager?
Germany and France knew all too well what a monster they are creating.
So now everyone is pointing they angry finger at Ireland. How come? France and Germany started this mess. They have to figure out how to clean it up.

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By: zart http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21173 Sun, 21 Nov 2010 18:53:38 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21173 Simple isn’t it. I’ve now seen how in France they have learnt how Spain, Portugal Ireland, Greece and the other profligate members of the Euro club have been spending like crazy/. France is now in the race to spend like mad, to get assets built before the inevitable Euro crash.
It will result in a) Germany refusing to go along with this nonsense, b) all profligate countries as mentioned above having to sack civil servants and curtail lavish spending, c0 yes a major revaluation of the EURO to a realistic level against Sterling, Canadian Dollar, US Dollar, Rouble, Reminbi, Yen and Australian Dollar. forget the rest.
I guess this will happen late 2011/early 2012, SO GET READY.

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By: TFF http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21169 Sun, 21 Nov 2010 12:50:09 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21169 Ireland in the USA? I like the idea! They would complement each other nicely in some ways.

But first would have to negotiate the corporate tax rate. Should it be 12.5% or 35%? That’s a pretty big difference!

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By: phrage http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21167 Sun, 21 Nov 2010 10:29:06 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21167 first sensible suggestion since this whole fiasco blew up. Ireland could join the USA instead !

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By: DanHess http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21165 Sun, 21 Nov 2010 03:45:08 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21165 Well we know from King Bill’s monthly missives that sensible Pimco favored Bunds over the debt of reckless periphery countries.

It seems they might as well have loaded up on Irish and Greek debt. D’oh!

As for the Germans, how does it feel to have the national balance sheet deflowered by some unelected bureaucrats? Probably not much better than in America, where our national balance sheet, already debauched, is further molested by some elected bureaucrats.

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By: Felix Salmon http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21162 Sat, 20 Nov 2010 20:22:45 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21162 Alea, I think we’re pretty much in agreement. No one’s saying that this kind of thing would be easy or cost-free, in fact El-Erian’s saying that it would be much harder than the current course of action. The point is that right now there’s enough time to orchestrate it. If you leave it till the last minute, then a chaotic devaluation would be, well, chaotic.

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By: alea http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21159 Sat, 20 Nov 2010 10:54:14 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21159 Where did I say that treaties can’t be changed or software can’t be changed? My point is that none of these can be done over a weekend. It takes years to change treaties in the EU, and Ireland is not in a position to switch currency without the full cooperation of the EU since its payment systems is entirely out of its control. Eurozone countries have given up monetary sovereignty (that was the point of the euro btw), and there is no easy and cost-free way to change that quickly.

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By: johnhhaskell http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21158 Sat, 20 Nov 2010 10:14:58 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21158 @ Alea- glad to know existing treaties can’t be changed.
@ Alea- glad to know existing computer software can’t be changed.

Any other reasons?

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By: thurstjo63 http://blogs.reuters.com/felix-salmon/2010/11/19/should-ireland-default-and-devalue/comment-page-1/#comment-21157 Sat, 20 Nov 2010 09:58:27 +0000 http://blogs.reuters.com/felix-salmon/?p=6228#comment-21157 Obviously none of you believe in the free market! The bond holders should take their losses as any investor should. Bailouts are only prolonging the pain. At the centre of this stupidity is the EU and the Euro which neither politically nor fiscally serves the interest of the Irish. Amazing to me why they signed up to the Lisbon treaty. Outside of trade and free movement of people, the EU serves no purpose. And for the two reasons I outlined, if Ireland belonged to the EEA, they could have those benefits without all the silly bureaucracy and waste!

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