More on Why Japan's Economic D-Day Could be Coming Soon - The Euro Collapse Has Started

As predicted, events are quickly spinning out of control in the Eurozone and this is going to have many unforeseen consequences to Japan and the rest of the world's economy. The recent news and chain of events have even begun the clarion call that the countdown to the breakup of the European Union has begun.

When a politician holds up a copy of EU Constitution and says, "Elect me and I will make a country for our people, not the EU" He will be elected... Greece recently elected Neo-Nazis to parliament. Will it happen in other EU countries? I think the answer is "Of course!"

I think it is a safe bet that the Euro is a dead currency and I don't think it will last another two years. In fact, I believe that things will completely spin out of control this year (but have been wrong with timing before).


Zerohedge reports in Countdown to the Breakup of the Euro Has Officially Begun:

It turns out that austerity is extremely unpopular.  But if newly elected politicians all over Europe begin rejecting austerity, this puts Germany in a very difficult position.  Should Germany be expected to indefinitely bail out all of the members of the eurozone that choose to live way beyond their means?  If Germany pulled out of the euro tomorrow, the euro would absolutely collapse, bond yields for the rest of the eurozone would skyrocket to unprecedented heights, and without German bailout money troubled nations such as Greece would be headed directly for default.  The rest of the eurozone is absolutely and completely dependent on Germany at this point.  But as we have seen, much of the rest of the eurozone is sick and tired of taking orders from Germany and is rejecting austerity.  A lot of politicians in Europe apparently believe that they should be able to run up gigantic amounts of debt indefinitely and that the Germans should be expected to always be there to bail them out whenever they need it.  Will the Germans be willing to tolerate such a situation, or will they simply pick up their ball and go home at some point? 

"It turns out that austerity is extremely unpopular." Duh!


This looks to me like a lose-lose proposition. 


If the EU countries stick to austerity, the people revolt and their governments fall. If they reject austerity (which I believe they will) then the Euro collapses. Germany is not going to keep bailing out these countries.


I expect that Greece will leave the Euro - soon! And then Germany won't be far behind...


Couple that with US economic problems and the Japanese financial disaster we are faced with and, as I said, I expect the bug to hit the windshield this year... Possibly summer.