Governments Request “Contingency Planning for Extreme Scenarios Including Rioting and Social Unrest”
The writing is on the wall. If you can’t read it, then you’re going to have a problem – very soon. It was in early 2009 that we first warned our readers of the coming wave of riots and social unrest that would envelop the globe. Nearly three years on we’re seeing a progressive increase in tension among those affected by deteriorating economic conditions and the trend towards social unrest seems to be accelerating. Absolutely nothing has been resolved in terms of the economic and financial woes facing the world, despite the literally trillions of dollars of wealth in the form of credit and monetary easing that has been committed to the crisis.
As the economic paradigm shifts and hundreds of millions of citizens from the world’s advanced economies are thrown into poverty (including 100 million from the U.S. alone), the situation is getting critical. So much so that what once existed only in the realm of conspiracy theory and alternative news web sites – that governments, especially in the U.S., are planning for large-scale economic meltdown and social unrest – is now a foregone conclusion in political circles.
Europe, as we discussed in 2009, is now coming unhinged and we have the real possibility of not just a collapse in the sovereign debt of a single nation, but the entire European Union and their beloved currency. This is not just some far-out possibility. The collapse of Europe now seems more likely than ever, and governments and regulatory agencies all over the continent are calling for immediate preparations, planning and strategies to deal with the imminent collapse of sovereign debt of individual countries, European banks, and the Euro monetary system that is the glue holding it all together.
“It’s in our interests that they keep playing for time because that gives us more time to prepare,” the minister told the Daily Telegraph.
Recent Foreign and Commonwealth Office instructions to embassies and consulates request contingency planning for extreme scenarios including rioting and social unrest.
Greece has seen several outbreaks of civil disorder as its government struggles with its huge debts. British officials think similar scenes cannot be ruled out in other nations if the euro collapses.
Diplomats have also been told to prepare to help tens of thousands of British citizens in eurozone countries with the consequences of a financial collapse that would leave them unable to access bank accounts or even withdraw cash.
The EU treaties that created the euro and set its membership rules contain no provision for members to leave, meaning any break-up would be disorderly and potentially chaotic.
If eurozone governments defaulted on their debts, the European banks that hold many of their bonds would risk collapse.
Some analysts say the shock waves of such an event would risk the collapse of the entire financial system, leaving banks unable to return money to retail depositors and destroying companies dependent on bank credit.
The Financial Services Authority this week issued a public warning to British banks to bolster their contingency plans for the break-up of the single currency.
Some economists believe that at worst, the outright collapse of the euro could reduce GDP in its member-states by up to half and trigger mass unemployment.
“When the unemployment consequences are factored in, it is virtually impossible to consider a break-up scenario without some serious social consequences,” UBS said.
Underestimate this events at your peril. Similar events played out in Europe in the early 1930’s, and we experienced a decade’s long depression here in the United States, followed by five years of world war – and that’s when we were a creditor nation without hundreds of trillions in debt and liabilities.
The collapse of Europe, as we have argued for several years, is imminent. If it so happens that Europe does collapse as we forecast, and capital flees to the safety of the US dollar (thus boosting the dollar’s strength and causing a stock market meltdown) than we urge readers to consider the repercussions that will be felt in America. Within a period of a few months to a few years a similar scenario will play out with our own sovereign debt and currency. And, when the world’s reserve currency goes into meltdown mode, all bets are off.
There’s a reason governments the world over are preparing contingency plans. They know it’s coming, and they know it will be pandemonium. There is, as we noted two years ago, No Way to Avoid Financial Armageddon.
Hope for the best, but prepare for the worst –
- collapse of purchasing power due to hyperinflation
- interruptions to the normal flow of commerce
- disruptions to food supplies
- political upheaval
- increased violence
- the militarization of Main Street
- and the potential for failure of our domestic utility grid.
We realize these are extreme potentialities and many might suggest we take off the tin foil hat, but the same was true when we and others forecast a collapse of Europe, civil unrest and government contingency planning three years ago. That has now been actualized.
The next leg of this crisis will take hold in the United States in due time. Don’t wait until it’s too late. Start thinking about money during a collapse, bartering items, post-collapse trade skills, and creating a solid preparedness foundation.
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Date: November 27th, 2011
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