What to do with the Euro ?

G. has to leave the Eurozone. No not Greece Germany.

Germany and a bunch of small Northern countries use the undervalued Northern Euro as their currency while we use the over valued Mediterranian and Irish (or Catholic and Orthodox) Euro. We need one more flexible exchange rate somewhere between them and the Sea.

If Greek politicians so much as mention the possibility of bringing back the Drachma everyone will take their Euros out of Greek banks before they become Drachmae. This may be necessary, but it won’t be pleasant. Also I would try to get my Euros out of Italy before they turned into Lire if they did (I’d probably fail — but I’d try).

But If Germany switches from Euros back into Deutchsmarks no one will panic. They always disliked the Euro. Now the Euro dislikes them too. It’s time for a divorce.