The 'big bang' in the Eurozone was either going to be from Spain or Italy as their debt starts with a T for trillion, the euro zone can do ugly and so can its currency. When weekend meetings start happening in the EU then you know the 'pin heads' are very very worried. This is where being a fan of Felix Zulauf will pay off for our readers once again, Flex said 'everyone has forgotten about Italy'.

From this post: Hurst Cycles confirm Felix Zuluaf bearish outlook

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The euro will fall apart. That the latest expection form the stock market Guru Felix Zulauf.

You were always a big critic of the euro. How goes the crisis?

FZ: Never have debt problems solved by more debt. In Greece, will play an epic drama. The Greeks are broke, its people and the Portuguese are close.

Who's next?

FZ: Spain is still doing well, but the matter will proceed as in Ireland. The Spainish bonds are priced correctly. The ECB manipulates the rates.

Is that all for the crisis countries?

FZ: No, it is missing Italy. Deposits are falling in their banks. We are experiencing a bank run in slow motion. Banks in Italy and in Spain are being refinanced with more short-term funds. Once the ECB stops being the biggest buyer of government bonds the yields will have to rise. It go crazy in Italy this year.

Can the Euro take it?

FZ: No. The markets want a breakup of the euro, with a value loss of 40 to 50 percent in the peripheral countries. The politicians want to save the euro. This is only possible with a weak currency and high inflation.

And now ZeroHedge oost: Europe Scrambles To Deal With Italy Contagion Fallout

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Newsflash: the crisis has spread to Italy. And it will only get worse at this point as Spain is largely ignored for now (until its own mortgage crisis starts making daily headlines like this one, however, where courtesy of the insolvent Cajas which are simply a GSE waiting to be nationalized, the can will be kicked down the road for at least 6-9 months ) and the vigilantes start dumping Italian debt and buying up every CDS available and related to Italy. "We can't go on for many more days like Friday," a senior ECB official said. "We're very worried about Italy." But, but, didn't Draghi just say Italy's banks will pass the second, "far more credible" stress test en masse? Welcome to the second, and final, part of the European insolvent dominoes contagion, the one which culminates with everyone bailing each other out... and the death of the euro currency of course.

COMMENTS: Our post on the US Dollar recently has been supported by the above fundamentals. Watch the volume in the UUP for the next week or so.