Should Ireland leave the Euro and devalue as suggested by economist David McWilliams?

Figures published by the Central Statistics Office show that the number of people signing onto the Live Register increased by 16,300 to 293,500 in December 2008. The unemployment rate rose to 8.3% in December from 7.8% in November. Exchequer figures for 2008 show that spending overshot Government income by €12.7 billion during the year. The deficit for 2009 could hit €20 billion.


Economist David McWilliams has suggested that Ireland should leave the Euro and then devalue its currency. He argues that no small country like Ireland has ever solved its problems without currency devaluation. It is incontestable that many Irish firms have been priced out of the UK market by the appreciation of the Euro against Sterling, which has suffered a massive devaluation as the Bank of England reduced interest rates. Similarly the Euro has risen in value against the Dollar.

The Euro is now overvalued against both Sterling and the Dollar. The Euro as a currency should be devalued by a slashing of Euro interest rates over a very short period of time. This is the route forward. The Irish government must administer the harsh medicine required and improve competitiveness.

David McWilliams suggestion that Ireland should leave the Euro is fraught with difficulty. Because the fundamentals of the Irish economy are so weak the Irish pound as a small currency would suffer a massive drop in value. Once it was floated it would go into freefall. This would trigger a massive rise in interest rates to protect the pound. The last state would be worse than the first.

Rugby Union-Jake White may be the next English coach

According to Stuff.co.nz World Cup-winning Springboks coach Jake White has started some astute lobbying for the international job he covets the most – the No 1 role with England................
Jake White has not reapplied for the position of coach of South Africa. Great credit is due to White who overcame a tempestuous relationship with the SARU to guide South Africa to victory in the World Cup. South Africa was successful in spite of the SARU.

South African rugby may be about to go into sharp decline. Political interference and attempts to impose racial quotas are the straw which may break the camels back.
We will now have a form of reverse discrimination against white players as politicians insist on a fixed quota of coloured players irrespective of ability. This is a recipe for stagnation and mediocrity. Some ANC leaders probably wish to destroy Rugby Union-a form of retribution for its former links to apartheid. These individuals live in cloud cuckoo land and are blinded by ideology and hatred. Perhaps they would like to drive out all whites and create a second Zimbabwe. South Africa needs white capital to develop the economy.

It is to Jake Whites credit that he stood up to political interference. The next coach will be more amenable to the wishes of politicians and may drive South African rugby over the cliff. A flood of the best white talent will head North driven out by racial hatred and the lure of a stable Sterling.
The portents are not good.