If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)

Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Why Ireland should borrow US dollars to pay off Euro denominated debt

realitykeeper · 2018-10-24 08:16:37

Interest rates in the US are rising and those with US dollar denominated debt are being crucified. However, when the US dollar crashes, it will be easy to repay a US dollar denominated debt. Buying gold with borrowed dollars would also be a good move now. The Euro is also a fiat currency but not all countries in the EU…

Options

24-10-2018 9:16am

#1

realitykeeper

Registered Users Posts: 4,138 ✭✭✭

Join Date: April 2013

Posts: 3794

Interest rates in the US are rising and those with US dollar denominated debt are being crucified. However, when the US dollar crashes, it will be easy to repay a US dollar denominated debt. Buying gold with borrowed dollars would also be a good move now. The Euro is also a fiat currency but not all countries in the EU want more of the easy monetary policy of the past. So, a rift is likely in the EU come the next recession. I understand Germany has arranged certain safeguards to protect itself against the possibility of hyperinflation because the actions of other EU countries are dangerous from a monetary perspective.

As things stand, Ireland is extremely exposed, if the global economy takes a downturn. We urgently need to use borrowed US dollars to clear our Euro debt and to buy gold.

0