Why Ireland would be better off if the national debt were US dollar denominated.

realitykeeper

The petro dollar is coming to an end. Even without the Trump trade wars, the US dollar`s days of hegemony are numbered. As the US attempts to normalize interest rates, and as the US stock indexes break record highs while enjoying the longest bull market in US history, the US economy will buckle under the strain of the rising interest rates, counter sanctions and counter tariffs.

The solution will be more QE (a lot more). Consequently the US will print dollars and that currency will collapse. Country`s that have US denominated debt will be able to pay off their debts quite easily, especially if they have gold reserves.

Unfortunately the Euro is not quite so simple. Germany has insisted on certain safeguards against hyperinflation which means when push comes to shove, Ireland will not have access to the traditional remedy of tackling spiraling debt with new currency. In other words, the only source of income the government will have will be us. The state will increase taxes and start seizing property and wealth from the citizens of the state if these taxes are not paid.

How soon could this happen? It could happen at anytime but I think it is safe to say it will start before the end of this decade. Am I wrong?

By the way, T.D. pensions are inflation linked so even if there was hyperinflation in the Eurozone, Bertie Ahern`s pension would also hyperinflate.

amcalester

Have any of your predictions been right?

realitykeeper

amcalester wrote: »

Have any of your predictions been right?

I think it was Bertie Ahern who said contrarians are wrong most of the time. Of course, it is also true to say if you play Russia roulette, the odds of not killing yourself are in your favour every time.

NIMAN

You have the most inappropriate username of anyone on this site OP.

You have no grounding in reality at all.

amcalester

realitykeeper wrote: »

I think it was Bertie Ahern who said contrarians are wrong most of the time. Of course, it is also true to say if you play Russia roulette, the odds of not killing yourself are in your favour every time.

And if you fire 1000 darts at a dartboard you'll probably hit the bulls-eye.

Doesn't make you a darts player.

Timberrrrrrrr

Didn't op predict a similar or even worse crash last year that failed to materialise? According to him 2017 was going to be the start of a depression and we were pretty much all fecked.

At least this time he has spread the doom out for a couple of years and given us until the end of the decade.

realitykeeper

An interesting update here: https://www.youtube.com/watch?v=4LIFzFHxZm8

A lot of countries are beginning to shore up their gold reserves as the reserve currency status of the US dollar may be coming to an end. The Euro is also a fiat currency. Perhaps Ireland should increase its gold reserves also but it would need to do so in the next few months.

uptherebels

realitykeeper wrote: »

An interesting update here: https://www.youtube.com/watch?v=4LIFzFHxZm8

A lot of countries are beginning to shore up their gold reserves as the reserve currency status of the US dollar may be coming to an end. The Euro is also a fiat currency. Perhaps Ireland should increase its gold reserves also but it would need to do so in the next few months.

So when are you changing your name to fantasy keeper?
Also
Where do you think the government would find the billions and billions to buy said gold?

realitykeeper

uptherebels wrote: »

Where do you think the government would find the billions and billions to buy said gold?

The government wastes tens of billions every year on welfare as well as state and semi state salaries etc. It was able the borrow tens of billions to bailout the banks and tens of billions more to fill the fiscal gap when it needed to.

If the next financial crisis is responded to with more QE, the fiat currencies could crash and a relatively small investment in gold now could enable the country to clear tens of billions from the national debt if the currencies we are indebted in, fall rapidly in value (hyperinflation).