I know, I know, the title is a little “over the top” (but it DID catch your attention didn’t it). Ambrose Evans-Pritchard warns about the crisis that no one is talking about, and (surprise, surprise) it’s in the Balkans and Eastern Europe (cradle of so many world crises). Eastern Europe is crashing with little expectation of rescue from western Europe and no “helicopter” Fed to pour buckets of money….I mean water, to slake the fire.
Its [IMF]$16bn rescue of Ukraine has unravelled. The country – facing a 12pc contraction in GDP after the collapse of steel prices – is hurtling towards default, leaving Unicredit, Raffeisen and ING in the lurch. Pakistan wants another $7.6bn. Latvia’s central bank governor has declared his economy “clinically dead” after it shrank 10.5pc in the fourth quarter. Protesters have smashed the treasury and stormed parliament.
Yep. This is the stuff that revolutions are made of, meltdowns lead to protests, revolts, and revolution. Perfect breeding ground for terrorism, or for a nation-state to divert attention from inner turmoil by attacking someone else.