Italy Economic Talk

In recent weeks here in Europe, there has been a hype about the Euro currency, Italy, and if the Euro can really survive.

I noticed this morning a piece by Focus (the German news magazine) which talked a bit over the current problems.  They brought in a noted economist....Doctor Daniel Stelter.

So Stelter talked to the subject of Italy and the Euro.  He thinks this is the end of Euro.

In a direct quote....Stelter says that Euro is attached to "strife and resentment among the participating countries."

Various members of the EU using the Euro....are stuck.  Heavy debt, no escape from that debt.  This affects competitive nature.  The whole design benefits Germany, with a couple of countries in the middle, and all the rest of the EU members are stuck in a mess with no exit. If you go and look at unemployment around Europe....it lays out a mess, which the basic comeback from the EU leadership is that they want to place more immigrants into the countries....even though the economics make no sense and there's no real jobs for them.

So what happens?  The economist predicts that Italy will go and create a new currency and seek to use it.  No one....absolutely no one....is going to throw Italy out of the EU.  But this idea of the Italian Lira returning might make a turn-around for the Italians.  And if it works for them....it will work for others as well.

And all of this leading to Germany recreating the Deutsche Mark?  Well....he thinks so.  A whole lot of speculation but that's what economists typically do.  If you asked most Germans under the age of forty.....they probably would prefer to go with the Euro.  I'm not so sure with the over-forty crowd....a lot of them grew up with the D-Mark and they might be inclined to accept this very easily.