Economy Overcomes Terrorism on American threat list

American president Barack Obama, along with European officials, is preparing people for the grimmest possible scenario. Both the U.S. and world economy are going to need not only a few months to recover, but a few years. This declaration, made during a meeting with the leaders of the big American corporations, follows Congress’s approval of the economic recovery plan, worth $789 billion, according to the Washington Post.

“The financial rescue plan is an important first step, but as important as it is, it’s only the beginning of what is going to be a long and difficult process of turning our economy around,” Obama said.

The plan, which was given the green light from the Congress and which the president will enact tomorrow, comprises tax reduction measures, local government support, as well as federal government expenses. The Obama administration hopes that this strong intervention from the state will help create 4 million new jobs, given the fact that in January alone, 600,000 Americans became unemployed. However, what the White House leader didn’t explain was that the hundreds of billions scattered all over the market, along with the total bonds America already has, basically leave the country bankrupt (America’s total debts are the equivalent of the world’s total GDP – $65 trillion), say the economic experts quoted by Hotnews.ro.

If America’s financial rescue plan continues over a period of several years, as Obama foresees, the U.S. will still face major security issues generated by the crisis.

Director of Intelligence Dennis C. Blair has already warned the Congress that the U.S.’s economic instability, as well as that of other states, has become the most serious threat to American security, overcoming terrorism.

“Roughly a quarter of the countries in the world have already experienced low-level instability such as government changes because of the current slowdown,” wrote Blair in the annual presentation concerning the list of security threats. As he sees it, an additional consequence of this crisis is the fact that the U.S. allies will no longer be able to completely fulfill their obligations regarding defense and humanitarian missions. Still, the immediate danger the U.S. could be facing is a range of violence, similar to before and after the Great Depression, which could menace the administration’s stability itself, provided the crisis will continue during the next year or two.

Things don’t seem to be brighter for Europe either, because its industrial base might not be able to recover, not even after the crisis will have ended, says The Telegraph. This warning was part of an awareness note issued by the European Commission. According to the commission, the industrial production downfall is of unprecedented proportions, and its recovery is unlikely, since member states ran out of money for rescue packages. In a single year, the Union’s industrial production went down by approximately 12 percent, but this percentage is a lot higher in countries like Spain (20 percent), Latvia (21 percent) and Romania (17 percent).

Another substantial contribution to the European production downfall was also over-estimating the single currency, the euro, explained the specialists quoted by The Telegraph.

“We don’t have a single euro in our budget to save companies. The financial options of the EU and member states are reaching their limits,” said Gunther Verheugen, vice president of the European Commission for Enterprise and Industry. What’s worse, warn the European officials, is that we will witness a prolonged period of “deindustrialization” in the EU, especially in areas such as construction, automobiles and the navy.