Tuesday 16 January 2018

Stephen Kinsella: Glitch shows us what euro collapse could do

The recent difficulty in Ulster Bank's electronic payment systems has exposed how fragile our banking system is to any shock.

And how uncertain life can be when there is any doubt about the 'plumbing' of our financial system.

We don't expect our direct debits to fail, any more than we expect our showers to start leaking. When they do, life quickly becomes intolerable. Or at the very least things smell worse. We depend entirely on our banking system to make modern life work. Efficient banking is the backbone of a credit-based monetary economy. This is why the banks are systemically important: without them the system doesn't work.

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