It's well worth reading the original Globe and Mail interview in full; Ferguson thinks the US is best placed to weather the storm, but things are not so rosy for Europe.
"There will be blood, in the sense that a crisis of this magnitude is bound to increase political as well as economic [conflict]. It is bound to destabilize some countries. It will cause civil wars to break out, that have been dormant. It will topple governments that were moderate and bring in governments that are extreme."Despite the gloom, Ferguson is dismissive of the prospects of global conflict - no World War III - but doesn't rule out military conflict in Europe. It's at times of crisis that our nation needs to look to its defences, and to our abilities to defend our interests. As Europe's only militarily competent nation, you can bet that when it goes pear-shaped we'll be the first that they cry for help to.
"I was more struck Putin's bluster than his potential to bite, when he spoke at Davos. But he made a really good point, which I keep coming back to. In his speech, he said crises like this will encourage governments to engage in foreign policy aggression."
"European banks are far more leveraged than American banks. I don't see Europe as offering up any particularly good model in any respect. In fact, I think Europe's prospects could get a whole lot worse this year, to the extent that it could be very, very hard indeed to keep the Euro zone together. I think it will be possible because the costs of leaving will be so high. There will be howling anguish, all kinds of pain, conflict between Germans and the others. It's going to get very uncomfortable indeed. No, I wouldn't look to Europe for inspiration."
"The two great zones of conflict in the 20th century were central and eastern Europe, and a critical part of northeast Asia – Manchuria, Korea. It makes me a little nervous that those are also places that are going to take a very heavy share of the pain."