William Katz:  Urgent Agenda

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EUROPE DESCENDS – AT 9:16 A.M. ET:  It's out of the headlines for a time, but the economic descent of Europe is proceeding at a disastrous rate.  It has to affect us here, as Europe is a huge trading partner.  And the weaker Europe gets, the more likely it is to be under pressure to become Islamicized, which is already happening in many countries.   From Britain's Telegraph:

The strategy of triple-barrelled contraction across a string of inter-linked countries has been the greatest policy debacle since the early 1930s. The outcome over the last three years has been worse than forecast at every stage, and in every key respect.

The eurozone has crashed back into double-dip recession. It will contract a further 0.3pc next year, according to a chastened European Central Bank. The ECB omitted mention of its own role in this fiasco by allowing all key measures of the money supply to stall in mid-2012, with the time-honoured consequences six months to a year later.

The North has been engulfed at last by the contractionary holocaust it imposed on the South. French car sales crashed 19pc last month, even before its fiscal shock therapy -- 2pc of GDP next year. The Bundesbank admitted on Friday tore up its forecast on Friday. Germany itself is in recession.

The youth jobless rate has reached 58pc in Greece, 55.8pc in Spain, 39.1pc in Portugal, 36.5pc in Italy, 30.1pc in Slovakia, and 25.5pc in France, with all the known damage this does to the life-trajectory of the victims and the productive dynamism of these economies.

EU policy elites blame "labour rigidities". The United Nation’s economic arm UNCTAD counters that the EU demand for "wage compression" is itself perpetuating the crisis.

COMMENT:  Would you just look at those jobless-rate figures for young people?  That is the basis for revolution.  At minimum, Europe is becoming more and more unstable, with the potential for the European Union to come apart. 

This is serious stuff, more serious than the deep concern in Washington over Hillary Clinton's future career.

December 10, 2012