Obviously the correct answer here is further economic integration (taking a page out of the United States' economic/political history). But Europe is unwilling to do that, so they need to ditch the Euro ASAP before the world economy collapses.
Yea, I wonder what would happen if a country like Italy simply converted all of its debt obligations (both public and private) into lira without defaulting, decreeing that one lira be equal to one euro, and then allow the lira to depreciate, or do a one-time devaluation.
Although the kind of ECB monetization intervention I have always advocated since last year is not really "further economic integration" and it technically does not call on the German taxpayer to contribute a single euro. The issue is a demonstration of real political will by the ECB.
