In a recent post called Euroland, I outlined three possible scenarios in the wake of the economic crisis in peripheral Europe.
As I had predicted at the end of August, the German Chancellor announced this week that Germany would not rescue any European country that defaulted on its debt.
I do not question her decision. She is in her right to do so. Nonetheless, her position may lead to three possible unintended consequences: the replacement of Germany by China as the dominant influence in European affairs, the irrelevance of the artificially overvalued Euro and the final demise of the already fragile European Union.
So, my dear Mrs. Merkel, you takes your pick and you pays your price.
