http://irisheagle.blogspot.com/2010/11/better-euro-dies-than-we-leave-it.html
Tuesday, November 16, 2010
Better the euro dies than we leave it
*** begin quote ***
Okay, call me nuts and I don’t really believe that our government or Department of Finance folks have this sort of courage, but what if our government has suddenly realized that the euro doesn’t suit our economy? Would it be better to leave the euro with our tail between our legs or to hope for the complete collapse of the currency?
*** end quote ***
Ireland could become the “economic Switzerland” with one “modest” change. Very simple. Leave the euro, create an Irish Currency Unit (the golden Punt?), and tie it to some amount of gold. Forget the current price of gold. Figure out the number of Punts in circulation and how much gold or silver is in the Treasury. Then, the Central Bank opens the “gold window” to buy them back for gold and sell them for gold. Purchasable from the central bank in gold and redeemable by the average joe — paddie in your case — in gold. From the Central Bank’s concern it’s a near zero some game; they can even have a few basis points small commission on each transaction to cover their costs. As the world’s only non-fiat currency, it would quickly become the world’s reserve currency. It makes the Punt worth something intrinsically. internationally as the only non-fiat currency it becomes a proxy for gold. The Central Bank could even mint the golden punt — like the Sadam supported, proposed im Malaysia, golden dinar http://en.wikipedia.org/wiki/Islamic_gold_dinar . What a shock to the global economy. It would hamstring the Irish Gooferment to only spend what it could afford in taxes. But, wow, the recovery would be dramatic.
# # # # #
Reinke Faces Life 