Bring The Gold

Let's say the Irish have had it with Euro-zone austerity measures, and are planning the re-issuance of the Irish Pound. On the eve of re-issuance, they have the intention to devalue the Irish Pound against the Euro.

Now, if every reverted currency such at the lira, drachma, pound, peso, franc within the Euro states devalued against the Euro, they would drive the Euro far too high against the dollar or the pound, so they might not be able to establish a workable peg against other currencies in order to devalue. The notable Swiss franc devaluation is only a temporary stopgap that might lose its effectiveness. Certainly every attempt to devalue the Yen has resulted in a higher Yen.

The ONLY available asset that you can devalue against in this scenario is gold. You can devalue however much it takes to completely monetize your debt. So it might be that the Irish may hoard gold towards that end.

http://www.youtube.com/watch?v=_qO66Rmi1Mw

Really, who is buying all the gold now?

http://watch.bnn.ca/the-street/november-2011/the-street-november-3-2011/#clip561437