Whilst Ireland suffers.........

A view from England

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This article on Bloomberg brought things home to me this morning.
German Business Confidence Unexpectedly Surges to Record High - Bloomberg
Whilst Ireland goes about the most austere budget probably in the history of the state, Germany is undergoing a boomtime.
This to me demonstrates why the Euro is a bad idea. The economies of Ireland and Germany are running at polar opposites. How can one monetary policy fit both economies? It cannot. Ireland is about to suffer, Portugal next. If it gets to Spain, for me the Euro is over as a currency.
 


seabhcan

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This article on Bloomberg brought things home to me this morning.
German Business Confidence Unexpectedly Surges to Record High - Bloomberg
Whilst Ireland goes about the most austere budget probably in the history of the state, Germany is undergoing a boomtime.
This to me demonstrates why the Euro is a bad idea. The economies of Ireland and Germany are running at polar opposites. How can one monetary policy fit both economies? It cannot. Ireland is about to suffer, Portugal next. If it gets to Spain, for me the Euro is over as a currency.
You think its a bad thing that one of the major markets for our exports is having a boom?
 

setanta

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Anti-European Englishman has a pop at the Germans ... sometimes I wish you lot had lost the World Cup final in 1966. It's time you got over the offence you take at all things Deutsch.
 

A view from England

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You think its a bad thing that one of the major markets for our exports is having a boom?
Read the article properly and get back to me. No mention if imports, plenty regarding exports.
 

setanta

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Read the article properly and get back to me. No mention if imports, plenty regarding exports.
Coming from England you've clearly not heard that, notwithstanding our banking woes, Irish exports are very healthy at present ... and guess where a lot of those exports are going. Ja, nach Deutschland!
 

Brehon

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If anyone has cash, should one purchase Swiss fancs, US dollars, Yen? I can see default, freezing accounts, same as in Argentina, setting low rate for our return to punt, so savings in euro will be crushed. Am I wrong here?
Good for Germany, they looked after their best interests, we didn't or political masters didn't. Watch interest rates rise from ECB to ensure inflation in Germany doesn't become an issue, while Ireland is burned. OMG I'm talking myself into a blue hysteria but I can't see a way out of this with current path EU is taking us.
 

johnfás

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You think its a bad thing that one of the major markets for our exports is having a boom?
Yes because it indicates over the longerterm:
1) A stronger euro which dampens our exports
2) Higher interest rates which are the opposite to what we need (just like low interest rates were the opposite to what we needed until now)

and finally
3) We export twice as much to Britain as we do to Germany and we export three times as much to the USA as we do to Germany. ECB policies are killing these exports. So yes, it is a bad thing.
 

A view from England

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Anti-European Englishman has a pop at the Germans ... sometimes I wish you lot had lost the World Cup final in 1966. It's time you got over the offence you take at all things Deutsch.
Oh dear, another small minded muppet of the Left and an EUSSR supporter to boot! Read the article properly and tell me how the Euro and the monetary policy supporting it fits both the German and Irish economies? No mention of anything anti German, no mention of the World Cup. When will some of you dump that chip on your shoulder. This is 2010, not 1910. :p
 

Social Conscience

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The euro as we know it dead in the water but at least German banks aka ECB are been looked after by their Irish cousins.
 

A view from England

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Coming from England you've clearly not heard that, notwithstanding our banking woes, Irish exports are very healthy at present ... and guess where a lot of those exports are going. Ja, nach Deutschland!
You make nothing for yourselves, you work for US companies that export out of Ireland whilst they pay nothing in tax. They also take all the profits.
Foreign-owned firms accounted for 91% of Ireland's tradeable exports in 2009; Food & drink exports fell 15%
US exports from Ireland are healthy.
 

setanta

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If anyone has cash, should one purchase Swiss fancs, US dollars, Yen? I can see default, freezing accounts, same as in Argentina, setting low rate for our return to punt, so savings in euro will be crushed. Am I wrong here?
Good for Germany, they looked after their best interests, we didn't or political masters didn't. Watch interest rates rise from ECB to ensure inflation in Germany doesn't become an issue, while Ireland is burned. OMG I'm talking myself into a blue hysteria but I can't see a way out of this with current path EU is taking us.
Moving your savings out of euros and into another curency will mean you take an immediate and quite substantial hit on foreign exchange fees ... remember what it was like before we got the euro. Unless you're one of the super-rich it really is not a good idea for ordinary savers to gamble with currency risk.

Whatever else Fianna Fail's criminal incompetence has given us we will not be forced out of the euro, nor will the euro collapse. The shame of the IMF/EU intevention is that it is only now that we can begin to say that someone is finally getting to grips with FF's utter failure. A general election and a Labour-led government will enable us to restore Ireland's economy.
 

johnfás

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If anyone has cash, should one purchase Swiss fancs, US dollars, Yen? I can see default, freezing accounts, same as in Argentina, setting low rate for our return to punt, so savings in euro will be crushed. Am I wrong here?
Good for Germany, they looked after their best interests, we didn't or political masters didn't. Watch interest rates rise from ECB to ensure inflation in Germany doesn't become an issue, while Ireland is burned. OMG I'm talking myself into a blue hysteria but I can't see a way out of this with current path EU is taking us.
If I were doing anything I would buy some strong German shares as they would stay in Euros at least until the Euro splits up (if it were to) and then they would be valued in marks which would be worth alot more than the Irish currency.
 

A view from England

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If I were doing anything I would buy some strong German shares as they would stay in Euros at least until the Euro splits up (if it were to) and then they would be valued in marks which would be worth alot more than the Irish currency.
BMW, Bayer, BASF, Merck etc?
 

setanta

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Oh dear, another small minded muppet of the Left and an EUSSR supporter to boot! Read the article properly and tell me how the Euro and the monetary policy supporting it fits both the German and Irish economies? No mention of anything anti German, no mention of the World Cup. When will some of you dump that chip on your shoulder. This is 2010, not 1910. :p
The mask slips ... "EUSSR" ... like I said another bigotted, anti-European Englander.

I'll take membership of the European Union any day over a return to the corrosive embrace of the United Kingdom, de jure OR de facto. Our future is as part of Europe not economically schackled to a declining Britain trading on former glories and a horror of all things German.
 

johnfás

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BMW, Bayer, BASF, Merck etc?
I'd probably steer clear from BMW as I am not really sure how the car market is going to recover over time. Yes China and that are buying loads of cars at the moment but really it can be argued that this global crisis is only beginning. Merck is a good share. I'd buy in the pharma or food sectors.
 

SKELLY

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This is what happens when you base a currency on the ideals of professional politicians and not on sound economics.
 

setanta

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Yes because it indicates over the longerterm:
1) A stronger euro which dampens our exports
2) Higher interest rates which are the opposite to what we need (just like low interest rates were the opposite to what we needed until now)

and finally
3) We export twice as much to Britain as we do to Germany and we export three times as much to the USA as we do to Germany. ECB policies are killing these exports. So yes, it is a bad thing.
Did you enjoy queueing to meet Katie Price up in Swords last Friday along with all those other Brit-wannabes. Hourihane had the measure of this in her article in the IT on Monday. Either we're part of the euro or we return to a suffocating relationship with sterling. We watch their soaps, follow their footie teams and apparently are the largest consumers of their foodstuffs ... you want to add economic servitude to Britain to that as well ... genius!
 
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Watcher2

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If anyone has cash, should one purchase Swiss fancs, US dollars, Yen? I can see default, freezing accounts, same as in Argentina, setting low rate for our return to punt, so savings in euro will be crushed. Am I wrong here?
Good for Germany, they looked after their best interests, we didn't or political masters didn't. Watch interest rates rise from ECB to ensure inflation in Germany doesn't become an issue, while Ireland is burned. OMG I'm talking myself into a blue hysteria but I can't see a way out of this with current path EU is taking us.
Depends on whether you have net debt or not. If your savings are less than say your mortgage which would be demoniated in euro, regardless of whether the euro goes belly up or not, you wont lose value compared to your debt.

I dont know if this thinking is correct but it is how I rationalised keeping my savings in Ireland.
 

johnfás

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Did you enjoy queueing to meet Katie Price up in Swords last Friday along with all those other Brit-wannabes. Hourihane had the measure of this in her article in the IT on Monday. Either we're part of the euro or we return to a sufficating relationship with sterling. We watch their soaps, follow their footie teams and apparently are the largest consumers of their foodstuffs ... you want to add economic servitude to Britain to that as well ... genius!
Pure emotional hogwash. We're currently in economic servitude to our German masters - however, they don't want to buy our stuff half as much as Britain and the USA - even when we're in a currency union with them! The reality is a small country is always a slave to a larger country in terms of currency. However, you are much better choosing a master who actually wants to buy your stuff. We have form here by the way - how many times did we devalue our currency after 1979 because we couldn't hold the peg with the Deutschemark?
 
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