Mediterranean is on Fire: What’s Next?

The chaos and concerns in an iconic peninsula nation in the eastern Mediterranean have sadly become almost second-nature news as a nation teeters on the brink of anarchy and/or civil war. It doesn't need to be like this but deep-seated agenda's long ago, set in motion the pandemonium that has engulfed the home of culture and modern society, Greece.

Information comes out every day with another solution that nobody wants or agreed to. And while throngs keep protesting the government cutbacks, the Greek economy (& government) twists out of control. Packaged bailout terms are offered but they would most likely push Greece into a deep depression. How bad is it? The Greek economy might be the worst Depression in modern history (source - Washington Post). From a political standpoint, really, the only thing keeping Greece out of civil war is no apparent opposition.

The spread

So what does that mean to others in the region? It goes without saying that Europe (European Union) is tied together economically. It wasn't good news recently when rating agency Moody's downgraded several countries including Italy, Spain and Portugal - plus they were all given negative outlooks (source - Bloomberg). Whether the Italians were ever truly out of the Recession, they're certainly in one now according to Italian national statistics. In fact, there are those who think Europe as a whole will be or is in a Depression.

You could give an opinion to either arrogance or ignorance, but it doesn't much matter as the Mediterranean countries in Europe are in financial gridlock at best, freefall at worst.

Then when you throw in the upheaval, disorder and maybe even some anarchy across the rest of the Mediterranean Sea's region, well, the area looks like a giant powder keg ... or maybe it's already a full-blown explosion. North Africa has had civil war and turmoil with Tunisia for starters. But of course, Libya and Egypt are in a huge revolutionary mode with chaotic disarray as the theme. It goes without saying that the eastern Mediterranean, including Israel, the Palestinians and Syria have their own muddled and sad devastation going on. Add in Turkey and Cyprus and it really becomes obvious the region is a mess both politically and economically.

What's next?

It's hard not to comprehend bigger effectual disorder and if Europe as a whole is in a Depression, perceptibly larger countries like France and Great Britain are in trouble. In fact, a European Commission has concluded that along with Italy, France and Britain's economies are unbalanced - declining exports are the biggest concern.

Cuts are expected from everyone but the situation in Athens begs the question: How much more can be cut; and also, how much more will the citizenry take before some small upwelling surfaces with a revolutionary tone that grows out of control and makes matters much worse? Is Madrid next? And can Rome be far behind?

Is the inevitable being delayed? Are we living in the largest debt bubble in history? Ostensibly, these restructuring plans were supposed to work - but recall that the austerity programs and bailouts of recent past for Greece have indeed not worked. Everyone was told that Greece is Greece. It couldn't happen anywhere else but now some of the largest economies in the world are staggering or crippled. And does political upheaval entangle the economic end?

There are many questions. The supposed solutions haven't worked. And now you add the United States into the equation because much of America's banking and business is tied to Europe so if they crash, can the U.S. be next?

There are answers

Rather than extend these elongated recession/depressions so they aren't so severe (but end up lasting longer), maybe the best medicine is a quick but deep depression. History has shown us that although depressions are never pleasurable, they clean out the bad businesses and give us a healthier economy when we're through them. After WWI, the United States had a recession that turned into the Depression of 1920-21. It was short lived due to the government (under a new President Harding) downsizing government and lowering tax rates (source - Forbes). The Roaring 20's were the result.

That's just one example but regardless, to read and watch the current flaming turmoil of economic and political battles in Greece, it almost seems like we're looking in the mirror. Is this what bodes for our future? Do we or can we learn from these debacles?

There is still much that has to play out but considering the government as the savior doesn't seem equitable or probable. It could be genuinely argued, a shift in thought has to move forward where citizens start taking care of themselves rather than enlisting the always problematic issues that inevitably comes from government intervention and meddling.

If it stays the status quo or we make the same mistakes being made in Greece and elsewhere, Depressions will spread all over the globe. Then we will have to decide if we want a long protracted downturn or a steep but short fall. In any case, wouldn't it be sadly ironic that where culture and society started may well be where it begins to end?