I've read many times over the years that the success or failure of the Euro is not dependent on Germany or France, rather it hinges on places like Italy and eastern Europe. Looks like those predictions are finally coming true, and the story isn't looking good. Of course, people have been predicting these problems since even before the Euro was adopted, and they're only now coming to light. And the people who predicted trouble for less-efficient economies who adopted the Euro also predicted the only way the Euro will fail outright is if such an outcome fits the interests of Germany or France. That remains to be seen.

Having the only internationally viable alternative to the dollar come apart like an unbalanced washing machine will have profound and unpredictable consequences for global commerce. This may not sound like it will affect you, but trust me it will.

But it will affect places like China and Saudi Arabia faster.

Interesting times, interesting times...

Via Instapundit.