Sunday, December 12, 2010

Preparing for an Irish 'NO' vote!

Next Wednesday the Irish Parliament will vote on the joint EU and IMF financial rescue package.

As few leading economists appear to rate the chances of this programme of cuts restoring prosperity to Ireland, and many are indeed suggesting it as already doomed, it would seem sensible for ordinary folk across the world to prepare for another Irish 'NO' vote.

What can only follow such a vote is an inevitable default by Irish banks on their debts and bonds. Reuters has an interesting comment on the dilemmas for Europe, linked here, and elsewhere lists the exposures of non-Irish banks with Britain at the head of the list being at risk for 140 billion euros.

How can ordinary citizens prepare for the chain reaction of banking defaults that seem likely to follow an Irish 'NO'  vote between now and next Wednesday evening? As many sovereign nations who stepped in to the breach following the Lehman's collapse are now themselves on the brink of bankruptcy available options for governments appear few and far between. I therefore suggest considering taking the following actions.

In countries with their own currencies get together significant quantities of small denomination banknotes. Stock up on essential supplies and secure your valuables as best you can. If by Thursday the credit crunch continues to totter along you have lossed little, but perhaps in the intervening period you may have wished you had taken other steps to protect yourself and your family from possible financial breakdown and potential chaos...... why not put such actions into place over the coming holiday period, for with the West's present leadership the crunch is unlikely to have then been avoided - merely deferred.

If you are living within a country that has adopted the Euro currency then the fallout is likely to be more severe. Check the National Identification Code for the serial numbers of euro notes from this link. You may decide you would wish to speculate on hoarding large denomination euro notes beginning with the letter X which may eventually be replaced by a new Deutsche Mark. Assume that small denomination euro notes may continue to be honoured in their country of issue, so in France obtain significant numbers of notes with U prefixes, Spain Y, Ireland T etc.  Dispose of notes from periphery Eurozone countries where you do not live and/or are unlikely to visit during the coming period of shortages and stringency. Otherwise stock up on essential supplies etc., as if living in a non-eurozone country.

The luck of the Irish to us all!

Labels: ,


Post a Comment

<< Home