FAR EAST CORRESPONDENT — If Italy fails to meet its sovereign debt commitments falling due in January and February, then the world may finally witness the doomsday economic scenario many fear is looking inevitable. Markets can expect the worst, hyperinflation may beckon, jobs will go and the precious euro will be compromised.

The Australians have cut interest rates as a pre-emptive strike to minimize the potential impact, and the Asian Development Bank (ADB) has cut its growth forecast for the 10 member ASEAN bloc and the rest of East Asia, warning the economic crisis in Europe is threatening to punish global growth. Read more in The Diplomat.