WSJ Claims Irish Central Bank making contingency plans to print punts

Permabear

This post has been deleted.

Dr Galen

Well according to the Central Bank, they is all wrong....

http://businessetc.thejournal.ie/we-are-not-printing-punts-central-bank-responds-to-wsj-printing-press-report-299710-Dec2011/

This morning, however, the bank insisted that it was still printing solely euro currency.
“We are not printing punts,” the spokeswoman asserted.
The bank holds only a small holding of foreign cash – with “only a small holding of US dollar” in its assets, which a spokesman previously told us was “held on a hedged basis”.
The Central Bank’s mint in Sandyford, which previously produced all Irish punts, remains in operation – though it now exclusively prints euro banknotes, and other ceremonial state coins.

There would have to be a contingency plan one would imagine. The same way businesses have that chapter in the Handbook regarding disaster planning. We've actually got one subsection relating to alien invasion/asteroids/zombies, mostly written as a joke to help get us through the monotony of the review process. It did make an interesting talking point though at a recent tender presentation

RonMexico

Well the CB is hardly going to admit it now are they?

mike65

A contingency plan is some distance from printing them, which is the story thats been doing the rounds for a few months now.

steve22

I like their source for this statement - "people familiar with the matter"....

EggsAckley

RonMexico wrote: »

Well the CB is hardly going to admit it now are they?

Honohan has form when it comes to admitting things

rsole1

Permabear wrote: »

This post had been deleted.

I have a substantial amount of cash €, so in the event of Punt Nua making a come back the authorities would try and "stamp" my euro cash. So to exchange it for anything other than Punt Nua I'd have to smuggle it out of the country in my underpants.

FreudianSlippers

Just as an aside, what do they do with the old ones? The Central Bank also said that there were IR£2.6 million traded in last year.
Not suggesting that they're stockpiling these anywhere, but presumably they are destroyed/recycled at the mint?

FreudianSlippers

mike65 wrote: »

A contingency plan is some distance from printing them, which is the story thats been doing the rounds for a few months now.

In another thread on here we've had a poster saying a few times that a "friend" of his/hers that works at the mint told him/her that they were definitely printing a "punt nua" for months now. :rolleyes:

thebman

Dr Galen wrote: »

Well according to the Central Bank, they is all wrong....

http://businessetc.thejournal.ie/we-are-not-printing-punts-central-bank-responds-to-wsj-printing-press-report-299710-Dec2011/



There would have to be a contingency plan one would imagine. The same way businesses have that chapter in the Handbook regarding disaster planning. We've actually got one subsection relating to alien invasion/asteroids/zombies, mostly written as a joke to help get us through the monotony of the review process. It did make an interesting talking point though at a recent tender presentation

The contingency plan is to swap the plate, Beverly Hill Cops style! I don't think you'd need another source as if we were living the Euro, existing facilities could be migrated you'd think.

I imagine this has nothing to do with Euro meetings today. FT doing Ireland a favor properly considering the reports about France and our corporate tax rate.

nesf

FreudianSlippers wrote: »

Just as an aside, what do they do with the old ones? The Central Bank also said that there were IR£2.6 million traded in last year.
Not suggesting that they're stockpiling these anywhere, but presumably they are destroyed/recycled at the mint?

Destroyed/recycled I believe.

Dannyboy83

The Irish government printing punts in advance of a potential collapse would mean the Irish government are prepared.............Can anybody think of one issue over the last 4 years where the Irish government have been prepared?

It's totally unrealistic.....If the euro collapses, it will be the usual panic stations response in the Irish government, they'll be ringing up the UK pleading for assistance.

eth0

Can't wait for Punt Nua. It would be excellent if they just re-used the old design, I miss those Punts from the good old days

professore

Dannyboy83 wrote: »

The Irish government printing punts in advance of a potential collapse would mean the Irish government are prepared.............Can anybody think of one issue over the last 4 years where the Irish government have been prepared?

It's totally unrealistic.....If the euro collapses, it will be the usual panic stations response in the Irish government, they'll be ringing up the UK pleading for assistance.

You got that right!

Despite them breaking salary rules for top "advisers", wait for the pleas of "nobody saw this coming" even though it's been doing the rounds for months now, just like when the IMF came to town, the property bubble, etc etc.

MagicMarker

I can't wait for the day it costs £14 for a Mars Bar.

Raskolnikov

Dannyboy83 wrote: »

The Irish government printing punts in advance of a potential collapse would mean the Irish government are prepared.............Can anybody think of one issue over the last 4 years where the Irish government have been prepared?

It's totally unrealistic.....If the euro collapses, it will be the usual panic stations response in the Irish government, they'll be ringing up the UK pleading for assistance.

Unless of course we are in an actual collapse and this measure is actually the government in panic mode :eek:

wiseguy

Dr Galen wrote: »

Well according to the Central Bank, they is all wrong....

Was it this time last year there was vehement denial of IMF/ECB being in town

Voodoo_rasher wrote: »

Does that include the grotty looking grey & yellow £5 note featuring a nun? )

no better!

cast_iron

Dr Galen wrote: »

Well according to the Central Bank, they is all wrong....

That's not a denial of the OP's story. The OP talks of contingency plans, your link just denies printing punts.

It would be more foolish if we weren't making contingency plans. Though one has to wonder about why "a source" would be reporting these meetings to the media. Have they no respect for the position they are in?

pog it

cast_iron wrote: »

It would be more foolish if we weren't making contingency plans. Though one has to wonder about why "a source" would be reporting these meetings to the media. Have they no respect for the position they are in?

Au contraire. Perhaps they got the nod?

meglome

Permabear wrote: »

This post had been deleted.

I don't suppose we should read anything into this being a Murdoch publication.

Scofflaw

Macers wrote: »

I rent in the IFSC

And the Mint is in Sandyford, which makes the connection extremely tenuous.

Although this has appeared in the WSJ, the sources referred to seem to be of exactly the same reliability as the "my mate told me" anecdotes we've now had for well over a year. Had they a solid source they would have referenced it. So the question here for me is why the WSJ has decided to make this claim at this point - just as the ratings agencies and the markets are piling on the pressure in advance of the euro summit - and, to be honest, I think the timing and the affiliations of the WSJ make it obvious what the answer is.

cordially,
Scofflaw

Dr Galen

Guys this is the Politics forum. Not only do we frown upon the "my mate told me" type posts, but also the "smart" one liners.

We have the Politics Cafe for the light hearted side of things for those interested. Otherwise can we try and keep it both OT and a bit more serious

Cheers

DrG

nesf

Icepick wrote: »

Euro notes are not printed in Ireland and new pounds wouldn't be either.

The mint in Sandyford prints Euro notes. The Central Bank were talking about how they do that today in the media.

Dr Galen

i thought I read that alright.

Has anyone seen similar stories in other Euro countries?

FreudianSlippers

Dr Galen wrote: »

i thought I read that alright.

Has anyone seen similar stories in other Euro countries?

Just this from people.co.uk

EuroZONE countries are making plans to return to old currencies in case the euro collapses.

And Germany is already producing Deutschmarks in case crisis turns to chaos, according to one analyst.

“They have already got the printing machines going,” said Dr Pippa Malmgren, former economic adviser to ex-US ­president George W Bush. “And they are bringing out the old Deutschmarks.”

German Chancellor Angela Merkel will meet French President Nicolas Sarkozy tomorrow to sort out EU treaty changes.

She wants EU states to agree a common stand on tax and spending to bring their economies into line. “We need budget discipline and an effective crisis ­management mechanism,” she said.

The pair’s plan to save the euro will be put to all 27 EU leaders, including David Cameron, in Brussels on Thursday and Friday. Experts say this really could be the euro’s last chance ­before Europe plunges into a ruinous slump.

But the single currency’s architect, former Euro­pean Commission ­president Jacques Delors, fears it may be too late. He said the euro was flawed from the start as members’ economies were so different. And without closer political union this crisis was inevitable.

“Everyone must examine their consciences,” he added. “It was a combination of the stubbornness of the Germanic idea of monetary control and the absence of a clear vision from all other countries.”

The People has found some experts are putting money under the mattress for fear British banks will collapse with the euro.

They are drawing wads from accounts in case cash machines and credit cards no longer work.

The action would cause a devastating run on banks if it spread.

The Prime Minister hopes to win back some powers from Brussels if treaties are to be changed. “This is the best chance Britain will have to renegotiate our deal with the EU,” said Tory ex-Cabinet minister John Redwood.

NickMondo

I can't claim to be to in the know here, is there anyone who can explain or is there a link even to explain really the ramifications of the euro collapsing? What do people on here think the likelyhood of it is?

FreudianSlippers

NickMondo wrote: »

I can't claim to be to in the know here, is there anyone who can explain or is there a link even to explain really the ramifications of the euro collapsing? What do people on here think the likelyhood of it is?

There are a few ongoing threads:

How to leave the Euro
We could be into the last 10 days of the Euro according to the Financial Times...
Euro collapse?
What happens if the euro goes bust

Some nonsense, some good stuff, mainly depressing either way.

NickMondo

much appreciated

KINGVictor

Scofflaw wrote: »

And the Mint is in Sandyford, which makes the connection extremely tenuous.

Although this has appeared in the WSJ, the sources referred to seem to be of exactly the same reliability as the "my mate told me" anecdotes we've now had for well over a year. Had they a solid source they would have referenced it. So the question here for me is why the WSJ has decided to make this claim at this point - just as the ratings agencies and the markets are piling on the pressure in advance of the euro summit - and, to be honest, I think the timing and the affiliations of the WSJ make it obvious what the answer is.

cordially,
Scofflaw

Scoff I am not following. Are you implicitly suggesting that there is some organised conspiracy to thwart the European project? If the answer is in the affirmative, can you disclose who these people are?

My impression was that the problem was caused by the uncertainty that currently encapsulates the Euro region of Europe. Actually, I am of the opinion that the markets are dissatisfied or more accurately, skeptical of the long term viability of the Euro. I have personally put it down to the herd mentality of markets based on information available to them and not some orchestrated attempt to bring down the project at all cost...but then, maybe I am been naive...

Scofflaw

FreudianSlippers wrote: »

Just this from people.co.uk

Mind you, that's the same Pippa Malgrem who said about three months ago that Germany was returning to the DMark "within a week"...

more than slightly sceptically,
Scofflaw

Scofflaw

KINGVictor wrote: »

Scoff I am not following. Are you implicitly suggesting that there is some organised conspiracy to thwart the European project? If the answer is in the affirmative, can you disclose who these people are?

No, I don't really go in for that kind of conspiracy theory.

KINGVictor wrote: »

My impression was that the problem was caused by the uncertainty that currently encapsulates the Euro region of Europe. Actually, I am of the opinion that the markets are dissatisfied or more accurately, skeptical of the long term viability of the Euro. I have personally put it down to the herd mentality of markets based on information available to them and not some orchestrated attempt to bring down the project at all cost...but then, maybe I am been naive...

No, you're right enough, I'd say - but this is a press outlet, not an investment company. Journalism is always a political exercise - it's rare to find a journalist who doesn't want to make a mark with each piece they write, and it gets more political the higher up the ladder, with the result that it's rare for a newspaper not to take sides. The WSJ has taken a line of putting pressure on the euro throughout the crisis, and this is more of the same.

Again, though, I don't think the aim is to "bring down the euro", but rather to force European leaders to come up with a credible plan that satisfies the markets. And in that sense there is a real conflict here.

cordially,
Scofflaw

Sierra Oscar

At this stage, it would be gross incompetence of the CB if they had not put together a set of contingency plans considering the current turmoil.

murphaph

It's almost certainly totally unrelated but there's a small factory at the end of my street here that makes security inks, the stuff used to print passports, ID cards and....banknotes and they are a supplier of the Bundesdruckerei (federal printing works). They never used to work shift, at least we never noticed any activity past normal business hours but in the past few months they have been working nights there.

I wouldn't be surprised if Germany had a plan of sorts, but deep down I think they will be trying to make the Euro work, more than look for a way out of it. The Germans get a bad rap but they put the most effort into Europe. They have never been afraid to put their money where there mouth was in relation to the EU, though I do realise they have their economic reasons BUT Germany still has the unfortunate legacy of being the country that almost destroyed Europe not so long ago and I feel that some Germans still feel a sense of a debt owed to Europe and this drives a lot of their actions.

irishconvert

Scofflaw wrote: »

And the Mint is in Sandyford, which makes the connection extremely tenuous.

Although this has appeared in the WSJ, the sources referred to seem to be of exactly the same reliability as the "my mate told me" anecdotes we've now had for well over a year. Had they a solid source they would have referenced it. So the question here for me is why the WSJ has decided to make this claim at this point - just as the ratings agencies and the markets are piling on the pressure in advance of the euro summit - and, to be honest, I think the timing and the affiliations of the WSJ make it obvious what the answer is.

cordially,
Scofflaw

So, do you think they have a contingency plan to print the punt, or not?

positron

Am I the only one who thinks it would be irresponsible of Irish Government to not to have the mint ready with such crisis going on with Euro? Isn't it basic crysis management / preparedness issue?

Imagine an unlikely but not improbable scenario of Euro falling apart over the weekend / next week. Would you be disappointed if Irish government didn't have the contingency plans in place to make punts available to all ATMs and banks so that county wouldn't come to a stand still?

whatstherush

positron wrote: »

Am I the only one who thinks it would be irresponsible of Irish Government to not to have the mint ready with such crisis going on with Euro? Isn't it basic crysis management / preparedness issue?

Imagine an unlikely but not improbable scenario of Euro falling apart over the weekend / next week. Would you be disappointed if Irish government didn't have the contingency plans in place to make punts available to all ATMs and banks so that county wouldn't come to a stand still?

What would be the point of having punts printed ready to go over night, when every money exchange system in the country is setup to accept Euro's. I'd be disappointed if the Government had\have printed punts and thought that by changing the currency overnight they are going to avoid chaos.

BeeDI

We had a real disaster last year, in the form of the big weather freeze. We handled that, with typical efficiency. Minister Dempsey on a sunshine holiday, and only enough salt for one helping of fish and chips.
I guess in respect of punt nua, we probably have enough ink, to print the price of a few pints of Bass, for Bertie.

eth0

whatstherush wrote: »

What would be the point of having punts printed ready to go over night, when every money exchange system in the country is setup to accept Euro's. I'd be disappointed if the Government had\have printed punts and thought that by changing the currency overnight they are going to avoid chaos.

We changed to Euros 'overnight' no reason the same can't be done with euros. For a month or two you pay in Euros and then Punt Nua becomes the only accepted currency and you'd have to go to a bank to exchange Euros from then on

meglome

eth0 wrote: »

We changed to Euros 'overnight' no reason the same can't be done with euros. For a month or two you pay in Euros and then Punt Nua becomes the only accepted currency and you'd have to go to a bank to exchange Euros from then on

How many years did it take to plan and execute?

nesf

eth0 wrote: »

We changed to Euros 'overnight' no reason the same can't be done with euros. For a month or two you pay in Euros and then Punt Nua becomes the only accepted currency and you'd have to go to a bank to exchange Euros from then on

Eh, were you around then? It was planned for years and then the changeover took months and months as old currency slowly got replaced with new currency. Even now we're still taking old currency out of the system and replacing it with Euros.

murphaph

eth0 wrote: »

We changed to Euros 'overnight' no reason the same can't be done with euros. For a month or two you pay in Euros and then Punt Nua becomes the only accepted currency and you'd have to go to a bank to exchange Euros from then on

It's completely different now.

The Euro would (likely) not be ceasing to exist as the Punt was. People would know that the replacement currency was going to be devalued asap and would do everything possible to hoard Euro and buy the devalued currency later, instead of getting 1:1 conversion by spending Euro in the shops and getting Punt Nua in change!

Blowfish

FreudianSlippers wrote: »

Just as an aside, what do they do with the old ones? The Central Bank also said that there were IR£2.6 million traded in last year.
Not suggesting that they're stockpiling these anywhere, but presumably they are destroyed/recycled at the mint?

I'm not sure about now, but I know when the euro first started the punt notes were shredded and shrink wrapped into blocks similar to this version for DM.

I actually used to have a block of somewhere in the region of £10k-£20k worth of shredded £20 notes that a person involved in this gave me. Apparently they burn extremely well.