From Barrie Stevens.
THE danger for investors who bank with Irish banks, allegedly now covered by legislation securing 100% Irish government guarantees, is that they are effectively acting as foreign exchange dealers taking a bet on the future of the EU, the Irish economy and the euro’s stability.

Ireland is in the Eurozone, which is now very unstable and may even fall apart or split into two regions, the rich and the poor, consequent upon Eastern European, Italian, Greek and Austrian economic troubles requiring IMF intervention. Even the IMF is soon to ‘print money’.

In the event of any breakdown or collapse, Ireland may have to refund the sterling bank balances of depositors by converting euros, or whatever other currencies have been invested, maybe even consuming its own national foreign currency reserves, unless account-holders have deposited in euros.

UK or sterling area banks are safer in the event of both a bank crash and wild currency fluctuations. The British government can at least control the amount of sterling by selling bonds, printing money, raising taxes and interest rates, or increasing the national debt. Ireland and the European Central Bank have no such control over deposits held in sterling.
4 Leigh Terrace,
Douglas,
Isle of Man.