George Soros stated at the Munich Security Conference in Germany today that he believes “in the coming two years you’ll see something of a replay of the euro crisis in the United States in connection with the finances of the states and local governments.”

Soros, the legendary investor and founder of the Quantum Fund, did not provide details on how such a crisis could play out or what the economic and political effects might be.

As for the ongoing sovereign debt crisis in Europe, Soros contended that it is near a resolution because eurozone members are working toward aligning their fiscal policies.

However, he noted that Europe is still “flawed” because of the economic imbalances between such a large number of nations operating under a single currency.  ”It is clearly visible that it will create problems in the years to come because the euro, which was supposed to bring about convergence has actually created a divergence within the performances of the various countries.”

Soros went on to say that “The structure that is currently being discussed will cast this divergence in stone. That will have very serious consequences because you are creating a two-speed Europe between surplus countries surging ahead and indebted countries sinking under the weight of their debt.”

In afternoon trading, the euro fell 0.4% to 1.3578 against the U.S. dollar.