Euro on Death Watch

Italian 6 month loan interest rates were 6.5% last week. Two year interest rates went to 7.8%. Unsustainable by any standards. Italy is too big to rescue from default by the ECB or even the IMF. When Italy defaults the Euro will collapse, banks will collapse and society may well collapse. No one knows how bad it will get or what will happen.

The British are preparing for a Euro collapse, including "riots and social unrest". The Telegraph said "Some economists believe that at worst, the outright collapse of the euro could reduce GDP in its member-states by up to half and trigger mass unemployment.
Analysts at UBS, an investment bank earlier this year warned that the most extreme consequences of a break-up include risks to basic property rights and the threat of civil disorder."

This blow to the global economy won't leave the US economy intact. Buckle up. 2012 will be bumpy.