The Eurozone Endures Violent Protests Over Austerity Measures, Led By Greece
The question may be, what does the economy have to do with national security? The answer is plenty. As we all know, employed people who can pay their bills are happy people. Unemployed people who cannot make ends meet and who have few prospects in the foreseeable future have the tendency to either pull back into a depression or to potentially lash out in frustration.
Austerity measures implemented by cash-strapped governments have led to strikes and protests in Europe and Greece in particular. Years of lavish spending that was not supported by revenues have come home to roost with countries forced to bailout Greece, and with other EU countries in danger of requiring the same.
Can The Same Happen In The United States?
The answer is a definite maybe, as out of hand spending and record deficits that have been created by the Obama administration in hopes of saving the economy may not have done so, as recent economic data seems to indicate.
The fear of a double-dip recession is growing which could have the effect of driving the economy down below where we were at the height of the financial crisis. The evidence is centered in the real estate market where existing home sales plummeted as did new home sales. Same store sales showed a decline as did durable goods orders. On top of all of this liquidity, a huge problem during the heart of the financial crisis, seems to be freezing up again as the cost of commercial paper, a key component of a corporations liquidity, reached yields near 2010 highs at approximately .43% compared to a .05% yield for treasury bills.
One more caveat to watch for is the July 1st maturity of the EU Long-Term Refinancing Operation (LTRO). as they try and roll it into a 3 month. Depending on how much of the maturing money actually stays and moves into the 3-month, and how much moves out of the EU will play a role in whether a huge liquidity crunch is created. Watch the LIBOR rate for an indication.
Remember that happy, financially secure people make for some semblance of harmony. The other way around holds the potential for something much worse.
Picture courtesy of Va.gov
Comments
So, what you're saying is that if we want total economic collapse, riots, political chaos, social unrest and the rationale for marshall law, the policies of the Obama regime will do the trick?
Hmmmm...
No, but I'd be searchin' Google for lists of long term disaster supplies and subsequent articles on how to survive such a disaster. I am.
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