Latvia's government collapses

Another country has collapsed, just as Iceland did. They were not given any loan from the Central Bank to keep going. Their hospitals, schools etc. are under the threat of closing down.

link to article: www.iht.com...

Latvia's center-right coalition government collapsed Friday, a victim of the country's growing economic and political turmoil and the second European government, after Iceland, to disintegrate because of the international financial crisis.

The crisis led the government last fall to secure an aid package worth €7.5 billion from the European Union, the International Monetary Fund and other sources. It came with strict conditions, and now the government is cutting spending wherever it can. Hospitals and schools throughout the country are under threat of closure, as local administrations find their budgets reduced by as much as 40 percent. Government salaries have been cut by 25 percent.

Latvia has been among the countries hardest hit in Eastern Europe, but it is by no means the only one. Ukraine, suffering from an even worse political deadlock, saw industrial output shrink by one third last month - the worst drop in over a decade - because of a slump in steel production, the country's economic mainstay.

Slowly but surely it seems, governments of the world will collapse. Is it part of the NWO - so they then can take over the countries they want? It seems that the Central Bank decides what countries go down, by not lending them any money.

yay, His will be done!

While the Latvian Government has been tossed out, the country is not in ruins. It is looking at a 10% recession and 12% unemployment

Belgium, one of the worlds richest countries and home to the EU capital, went without a government for much of the past two years for numerous reasons.. and it was business as usual.

Also, Latvia has only two million people and an extremely fragile developing economy and infrastructure.. Iceland has a population of only 3 hundred thousand and an economy run almost completely on financial services.

The combined collapse would be the equivalent of a medium sized city going broke... nothing to get overly excited about unfortunately.

The people of the government there resigned, the presidential head is still there trying to organize a new party that will make all of the rioting peoples happy.

reply to post by xoxo stacie


stacie...

please explain to us/them...what a 10-20 % collapse of Eastern Europes financial sector will mean to Europe in general? PLEASE?

[edit on 2/22/2009 by Hx3_1963]

Originally posted by Hx3_1963
reply to post by xoxo stacie

 

stacie...

please explain to us/them...what a 10-20 % collapse of Eastern Europes financial sector will mean to Europe in general? PLEASE?

Eh? Im not too sure what you are getting at here but an ex soviet state with 0.5% population of the EU and an average weekly wage of 100 euros doesn't count as a financial Hub... or even as much of a financial sector.

Eastern Europes Financial Sector counts for about a tenth of the EU GDP while it holds between a quarter and a third of its population. That is not much leverage and may be an easily controlled problem.

reply to post by Dermo


Ok...good...then if 2-3-4 of these piss-ant countrys default...all is well...even if Austria/Sweden/Switzerland got their back???

Originally posted by Hx3_1963
reply to post by Dermo

 

Ok...good...then if 2-3-4 of these piss-ant countrys default...all is well...even if Austria/Sweden/Switzerland got their back???

Again, Im not too sure if I am getting your point.

It would be unlikely that Austria, Sweden or Switzerland would help any failing Eastern European countries as those three countries have a combined population of 20million and under a trillion EURO gdp. Switzerland is not in the EU and it is also in a bit of trouble because its economy is mainly financially based.

If the failing Eastern European countries were in the EU, the EU would help.. If not, the IMF would help.

If Germany (approx 80million people & 4 trillion $ GDP), France (approx 60 million people & 3 trillion $ GDP) etc failed by 20%, then there would be serious problems around the world.

Again, if ten small, weak economies that total a three quarter trillion dollar GDP fail by 20%, it would have a similar effect on the world as the Spanish recession is having.. ie.. not much.

That is unless you mean that these countries might get usurped by Russia again in return for financial aid? This is also unlikely as Russia is also in a tight spot and these countries would prefer not to deal with them.