Israel Prepares for Euro Collapse

The word "collapse" sure seems to be making the headlines in the last 12 months.  Again, we ask the question....what does it look like to have the Euro currency and the European Union collapse?  I'm not sure anyone really knows.  It kind of falls into that category of "unknown territory".

Jan. 26 (Bloomberg) -- Israel's government is preparing for a possible collapse of the euro region, the destination for about 30 percent of its exports and a source of tourist revenue, Finance Minister Yuval Steinitz said.

"We cannot deny the possibility” that one or more major members of the euro zone will exit the bloc, Steinitz, 53, said in an interview yesterday at Bloomberg's headquarters in New York. “If the euro zone will disintegrate, that's a whole new crisis. We have an emergency plan in the worst case scenario.”

The Finance Ministry reduced its growth predictions for 2012 this month, to 3.2 percent from 4 percent, citing Europe's sovereign debt crisis. Greece, with a total 350 billion euros ($454 billion) of debt, is in talks with bondholders as it seeks to avert a default. More than half the respondents in a Bloomberg Global Poll published yesterday say one or more nations will leave the euro in the next 12 months.

Here;  http://news.businessweek.com/article.asp?documentKey=1376-LYDN8Z1A74E901-7Q4KQHFICA0Q8NARBQ6HF0HBNT

Maybe the Euro coming apart won't be that big of deal?  Maybe there will just end up being a orderly exit of countries?...kind of just like the countries were added one at a time to the Euro zone...maybe they will exit it one at a time?...and it will be no big deal?

OR.....

Maybe it will be a train wreck of a collapse, with wealth evaporating like water on an Arizona parking lot....and lots of countries pointing fingers at other countries...and every country blaming Germany who refused to write a blank check to keep the whole Euro debt scheme alive? 

Remember that Europe has been the bloodiest continent for the last 400 years.  The European Union was supposed to help guarantee that Europe quit it's warring ways.  This will be very interesting to watch.