For the first time I am starting to see respected economic bloggers talking about the inevitable Euro breakup openly on their blogs. Up until last week all I ever saw were vague ominous portents along the lines of “the waters ahead are shallow and full of shoals, but the Eurozone is trying to plot a safe course…” Crap like that.

There hasn’t been a safe course. This whole Euro experiment was a catastrophic case of global financial incompetence that did nothing but expose and exacerbate the difference between cultures which produce and cultures which consume.

Now people are whispering about an “invisible bank run” in Greece. That’s been going on for months, probably more than a year. In fact the same thing is happening in Spain, Italy and other “vulnerable” nations.

For the past four years or so I’ve been watching the smug anti-American, anti-capitalist cheerleaders across the world brag about how the Euro was becoming the “new dollar”.

Well, the dollar isn’t anything to brag about any more, but the Euro is likely to become the new wallpaper trend the way things are going.

Ratcheting Up The Crisis In Europe | Via Meadia.

The other way that public sentiment threatens to blow Europe sky high is swifter, less predictable and far more dramatic. As Greek savers and investors read the writing on the wall, they are pulling their money out of Greek banks. They know that if Greece pulls out of the euro, the government will do something funny to the banks; they aren’t sure what (nobody really is), but there is a strong suspicion that any money left in Greek bank vaults will be converted from euros to drachmas at the stroke of a pen (more likely, by the tap of a keyboard), and those drachmas will soon be worth much, much less than a euro.