Cracks in the Euro

A Greek official finally admits the obvious:

Greece must take tough measures to deal with its debt crisis or it will have to return to the drachma, the EU’s Fisheries Commissioner Maria Damanaki said on Wednesday. “I am forced to speak openly,” Damanaki was quoted as saying in a statement by the semi-official Athens News Agency. “Either we agree with our lenders to a programme of tough sacrifices … or we return to the drachma.”

I’m hoping Italy will return to the Lira, myself. I still have a few of them sitting around somewhere in the old filing cabinet. Anyhow, this “forced restructuring” is the only valid option since the ECB, the EU, and the bond-holding banks have repeatedly refused to cut Greece’s debts in a manner sufficient to permit repayment.