If Bulgaria falls off the cliff trying to hold the euro peg, it will likely have seismic shock waves across most of South Eastern Europe, says an article about the attempts to stabilize Latvia, drawing parallels between the two countries.

"If Latvia is left to fester, and the country falls into a growing political anarchy, containment will be much more difficult and panic will likely set in. That will impact the plans of Lithuania and Estonia as well as Bulgaria," the British Market Oracle wrote.

The author William Engdahl believes that the problem for Bulgaria is not one of sustaining the Euro peg, but of restoring competitiveness and economic growth, and this is much more difficult without a formal devaluation.

According to the article the IMF refusal to release its share of the rescue loan for Latvia is part of a Washington-backed effort to break the peg and thereby force other fixed-peg pre-Euro EU members-Estonia, Lithuania and Bulgaria-as well to devalue and forget the Euro dream.

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