Bring Back the Lire!

Italy eyes euro zone aid to ease debt pain | Reuters.

Italy is a perfect candidate to return to its former currency, devalue and then begin growing. Unlike Spain or Greece, Italy has a robust industrial base in the north. This industrial center creates a lot of valuable products that are demanded worldwide, and not just the kind you eat or wear.

Italy is a perfect example of what is wrong with the Eurozone. My ancestral home is actually the product of several similar countries welded together by Garibaldi in the mid-19th century. All of these countries began using the same currency, gold, as part of the Latin Monetary Union. Adopting this currency linked the northern industrial area with world markets, and it has done well ever since. This new currency made the south unproductive, and to this day it has not developed an industrial base. It relies on handouts from the Central government and the camorra.

Lest anyone thinks that unifying Europe will somehow end of all their problems, look at Italy. The poor areas of Europe will remain poor, and the rich areas of Europe will pay them and resent it.

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