Germany is the new pig. Germany depends on exports and its markets are drying up. When the Germans start getting 10% unemployment, 15% unemployment, which is the real variable, how are they going to handle it?
George FriedmanIf you go through the list of things that are not possible you're left with a very finite amount of possibilities. The fancy name for this is constraint theory. It's a nonquantitative model, but it's a field of mathematics.
George FriedmanItaly is the fourth-largest economy in Europe and the eighth-largest economy in the world, and its banking system is collapsing. And Germany is desperate. It must maintain its standard of living. It can only do that with exports and Deutsche Bank is very exposed to Italian debt. But so is the rest of Europe.
George Friedman