# Should we just leave the euro?



## Firefly (5 Dec 2011)

Not sure if we have discussed this here yet...should we just do an Iceland on it? Maybe we would be better served if Enda Kenny spent more time in London than in Brussells in the coming weeks? Interesting article by Frederick Forsyth. 

http://www.independent.ie/opinion/analysis/only-salvation-is-to-leave-the-eurozone-2953400.html

Thoughts?


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## shnaek (6 Dec 2011)

One of the comments on the article (from an Icelander) put it best:

"No, it is not good to have our independent currency. With fall of the banks the Icelandic Krona devaluated by half, resulting in inflation by some 30 -40% from the fall (could be over 40% - did not calculate). This meant much higher cost of living on the same income. Worst of all was though the fact that all loans in Iceland are linked to inflation rate which has resulted in outstanding amount of loans increasing by the same (est. 40%). This has resulted in the fact that for all homeowners from 25 - 40 years of age; all lifesaving is gone and for many outstanding loan amount much higher than property value.

Result: Icelanders are paying big time for the fall and will be for decades to come ! This is by far not any "dream position" to be in !

You earn the same in Iceland as you did in 2007, cost of living has gone up by 30 -40%, taxes are up by far, your outsanding amount on loans has gone up by the same as inflation. If you still have job, you are struggling to survive. If you don´t have a job you are either suicidal thinking or on the way to Norway for better living. "

People talk about growth in Iceland, but that growth has come after a massive drop. People talk about Iceland without ever having visited the country, before or after the crash. Yes, they still have their independence. But are they any better off? The only thing you can say for Iceland is that they took the pain in one go, whereas we are taking it in a thousand goes.


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## shanegl (6 Dec 2011)

There's much more to it than just:



> It would be necessary to print enough punt notes and fill the ATM machines over one long weekend.



The article is nonsense. No-one advocating leaving the Euro has been able to explain how it can be done.


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## frankmac (6 Dec 2011)

Of course there are plenty of rumours that the printing has already been done


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## Chris (6 Dec 2011)

The question is what to replace the Euro with?

If it is to replace it with a sound and strong new currency, then that could be done over a period of time, which would be needed. If it is with the express intention of introducing a weak and devaluing currency then it would be a bad idea and practically extremely difficult without causing massive capital flight.


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