“Paper money eventually returns to its intrinsic value ---- zero.”
"Banks lend by creating credit. They create the means of payment out of nothing."
Ralph M. Hawtrey, Secretary of Treasury, England
Over the last three years, the Irish economy has gone from boom to the verge of bust, needing a major bailout. In a globalised world, the economies of nations are interlinked. If Ireland went down, it would definitely hurt the UK, Ireland is the fifth largest export market; the trade is worth around £23.8 billion. David Cameron emphasised this in his statement: "We export more to Ireland than we do to Brazil, Russia, India, China combined”. In addition to economic ties, there are ties of culture, language and history.
Therefore, the British government and the Euro were compelled to organise this bailout, in order to halt the potential domino effect, from the collapse of the Irish economy, creating another dive into recession. Spain and Portugal seems to be going in a similar direction with a growing budget deficit, and there is already talk of them being bailed out in the future.