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Someone, somewhere, is thinking the unthinkable. Here’s how it works; the Eurozone will break up with perhaps a core of Nations remaining in a tighter fiscal German owned smaller union, whilst other Nations bring back the currencies they willingly abandoned to join the profoundly flawed Euro club. Just read this…

THE Central Bank of Ireland confirmed today that it is not printing Irish punts and is only printing euro. The bank refused to comment on what it called “speculation” in today’s Wall Street Journal that it is considering if it needs to secure additional printing press capacity in the event that it has to print new bank notes to support a “reborn” currency.

The US newspaper quotes “people familiar with the matter” and says other central banks have started to weigh contingency plans to prepare for the possibility that countries leave the eurozone or the eurozone breaks up entirely. Seven Investment Management analyst Justin Urquhart Stewart said talk of Ireland printing punts was coming from a number of sources, on RTE’s Morning Ireland.

The truth is that Ireland has a shot of economic recovery IF it leaves the Eurozone, restores the Punt, links it closely to the British Pound, and abandons the huge debt that Merkozy has imposed on it. Some of those who oppose my politics think I harbour ill-intent to the Republic but this is quite wrong. I want to see a prosperous and successful Irish economy and I am certain this will not happen whilst it remains anchored in the dying Eurozone.

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12 thoughts on “RETURN OF THE PUNT?

  1. I saw a comment on an article in the Telegraph yesterday. A Europhile was saying that you Euro sceptics would see the banking system collapse and governments fall if it meant the UK was out of the EU.
    I have no answer to that. It’s true, I’d be prepared to see all that and more short term for the long term gain of us not being in the EU. Overall IMO the short term pain would be worth virtually anything, short of the extinction of all life on the planet.

    and I thought they didn’t understand us…..;)

  2. ““people familiar with the matter” is Wall Street Journal speak for “from the horse’s mouth”.

    In any case, it would be astonishingly negligent if all members of the Euro did not have contingency plans for its break-up.

  3. Peter,

    I’d put more stock in the “Conservative” Wall Street Journal that that liberal rag, The New York Times.

    If the irish government denies the matter and the Central Bank of Ireland confirmed today that it is not printing Irish punts and is only printing euro, you know the return to the Punt is a done deal.

    Germany, France and a couple more of the chosen, closed club are going to cut the La Dolce Vita, instant gratification countries loose like an anchor from a sinking boat in a perfect storm.

  4. Yes, I’d ignore all denials.

    They’d be idiots not to have been planning for the possibility for some time.

  5. “The truth is that Ireland has a shot of economic recovery IF it leaves the Eurozone, restores the Punt, links it closely to the British Pound, and abandons the huge debt that Merkozy has imposed on it.”

    I agree totally with this, David. In your opinion, is there any chance this might come to be?

  6. It’d be just like Dublin to be caught on the hop. I wouldn’t be surprised if the Germans have a stash of nice, shiny D/Marks, just in case.

    Patty

    There’s a chance, but it’ll happen only if dublin is forced into it. We’re talking hardcore euroloons here who will see the Irish people starve before leaving the eurozone.

    Happily, we live in an age where events change sentiments and people and politicians are discovering that policies and whole regimes rely on the one thread of consent. When that goes, the politicians are helpless.

  7. Why do you think a peg to Sterling would help at all, and what level would you suggest considering the scenario you envisage would inevitably require a devaluation?

    Why not a peg to the new Euro, or the Dollar, or why a peg at all?

  8. Trade with countries using the three currencies ( Euro, Sterling, Dollar ) will always be critical. You’d think that if they leave the Euro, the smart play would be to let the punt float.

  9. and abandons the huge debt that Merkozy has imposed on it.

    How has that debt been imposed on Ireland ?. Is Ireland not the author of it’s own misfortunes. Nobody forced it to borrow excessively, it chose to do so. Nobody forced it inot the Euro. It chose to join. This blaming of Germany by the weaker Eurozone countries for their problems is an abandonment of personal responsibility.

  10. I think that the Irish were not that bad with the borrowing – except for the assumption of ALL DEBTS of the banks. That was the huge error – which they didn’t realize the ramifications of.

    They made mistakes but it wasn’t the intentional assumption of debt for social services and chicanery like some of the others.

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