Ireland: An opportunity for Free Banking?

With the current concerns over Ireland's stability, with the EU itching to turn the ratchet towards total loss of sovereignty, Dan Hannan has suggested that Ireland adopt the Pound Sterling.

I am not going to discuss if Ireland should or should not do this here, as it is really none of my business, only to say that they do risk exchanging one Tyranny with another, or should I say, one Tyranny for a Mini-Me of the same Tyranny [1].

What I will say is that if Ireland decides to leave the Euro, this could be a situation for Ireland to adopt Free Banking. The Irish Government could move itself and the Bank of Ireland to another currency, a new currency or resurrect their old currency, demanding revenues in it as well as converting its debt to it, while the rest of the economy could remain in Euros, switch to Pounds Sterling or US Dollars or Vietnamese Dong, even.

Forcing all private capital in Ireland from one currency to another new currency or new arrangement introduces risk and businesses do not like risk as it tends to make things more expensive. If companies can remain using Euros and swap by their own choice, likewise for individuals, then the validity and viability of each entity and their wealth will be more influenced by personal responsibility instead of monopolistic actions and Government Fiat.

The move to Free Banking would break the forced collectivisation of wealth caused by the monopoly over currency. This moment in Irish history is, IMHO, just the time to introduce it.

Regardless, I wish the Irish people well and hope their Government makes wise decisions.



[1] David Cameron has shown himself to be no defender of UK Sovereignty, but hankers for agreement and Compromise and, not being as practiced in the Fabian arts of incrementalism, has been bested.