This site will provide some information regarding what Irish people can do in order to protect their cash savings in the event of a break up of the Euro. Be it buying precious metals, assets, stocks, opening a bank account abroad, or any other option, the motivation is simple – keeping cash where the Irish government has power over it is a risky business. If the financial crisis comes to a head, the government may exercise several options. They may introduce limits on bank withdrawls. They can (overnight) re-introduce the Irish punt, which will likely immediately devalue against stronger currencies, and with it any cash held in Irish banks. Imagine losing 50-70% of your savings?
You can have a look at the profile of the exchange rate fluctuation of currency pairs at www.advfn.com - check out the Icelandic Krona versus the euro. In 2007 it was trading at about 80 Krona/euro. During their crisis in 2008 the exchange rate shot up to 300 Krona per euro, and then plummeted to below 150 Krona/euro a few months later. There followed further fluctuations, and recently it has been trading at around 160-170 Krona/euro . So savings held in Krona have devalued around 50% versus the euro. What if something similar were to happen here?
But Europe will save us, right? Our Fine and Fianna friends have proven adept at servility in Europe, but if we behave like servants, then in the end we will be treated as such, and recent events suggest that we are no longer dining at the same table as the larger nations. Whatever agenda is being followed in Europe, it does not have the interests of the Irish people at heart. After seeing Brian Lenihan volunteer indentured labour of the two million or so workers in this country to pay back for the insanity of financial institutions, it is difficult to argue that even our own government has had our interests at heart. Fine Gael and Labour, while surely delighting in their newfound status and state drivers, have done little to change this, and if anything appear even more servile. Morgan Kelly’s begging bowl perhaps describes it best.
For those who say it is unpatriotic to move money out of Ireland, perhaps it is. But surely we have been betrayed to date by incompetent politicians, and greedy not to mention criminal financiers. None of these people have been held accountable. On the one hand public financial accountability has been rent asunder, and reams of legislation enacted to ensure the taxpayer pays off tens of billions of private debt. On the other, we have been told that no legislation can deal with pay agreements, golden handshakes, and contracts even though some of our banks and developers may well never have turned a genuine profit during the boom. The developers themselves have been transformed into €200k/annum public servants, along with most bank employees. The 3% pay increase AIB decided to give themselves in 2009 was an outrage. One wonders how such a situation can be constitutional. So – if you feel too patriotic to protect yourself, ask this. Do you think that those who profited enormously from the boom, and have accountants(should we pay for the education of individuals that spend their working lives seeking loopholes in tax laws, effectively subverting the rules of this state?) to look after their affairs have kept their cash in Ireland? Do you think they will be queuing up to help out when the rest of the country is broke? My guess - they’ll be back alright – to buy us out and make another killing. Such is the nature of the ‘great and the good’.
When your leaders fail you, then it is time to look out for yourself. We have options. There are caveats, and I’ll try to assess these. Suggestions are welcome. I have a thought regarding setting up an offshore bank where Irish citizens place their money out of the clutches of the state that is set up and ready to lend back into Ireland after whatever happens happens (it seems inevitable that something is going to give, be it a multi-tier euro system, or a reintroduction of the punt).