The global economic crisis is in its worst shape when the European member nations continue their current trend of gigantic borrowings and therefore, ending up into huge debts. As far as the eurozone-break up is concerned, the political effects cannot be gauged, though Greece may be serving as an unfortunate indicator of what a small state can expect in terms of troubling future history if the world's fragile economic circumstances deteriorate.
The way the political arena of is concerned; Greece and its people have lost faith in it which has further resulted into the state institutions relying on its government in a much weaker state. When the Greek government announced strict measure to help repay the debt amount, they faced an enormous rage by its people forcing Greece’s former government to resign. Its caretaker government begs for domestic cooperation and international help. The furious side of its people has taken a toll in the proper functioning of the administrative services in Greece by its coordinators. This anger seeds an ugly intra-European war waged with inflammatory words.
Once the government realized the pressure on its economy, the department which faced the major cut during the latest budget revelations’ was Greece's defence. This has further infuriated the defence personals and created a wave of dissatisfaction among this community. The government, however, does not want to cut back on the regular force's personnel strength because that would increase unemployment. Meanwhile, Greece's traditional foe, Turkey, is buying Type 219s – (German submarines). Looking at a political perspective, Turkey being the closest competitor to Greece seems to be in a better shape.
Any country’s defence is considered as the major element of national security. Another topic gaining more attention these days is the way the Turkish government is contriving on oil and natural gas in Cypriot waters. Turkey wants the division of Cyprus (a frozen war) resolved before gas production starts.
Greece is anticipated as a small state, as far as the year 2012 is concerned. As the debt crisis in Greek is impacting the entire Euro-zone immensely, its departure from the euro-zone will help settle the other big economies covered under Europe. If frictions develop over Cyprus, the U.S. would defuse Greco-Turk tensions.
Now the question arises, what if the current apathy increases, it would produce a deep and prolonged global depression. The Greek model indicates governments weaken and angry populations get angrier. Any kind of desperation may exaggerate political market for the vendors looking out for quick and easy solutions.
Media helps strengthen any agenda by publicising it to larger forum. Today, international coordination of demonstrations simply requires cell phones.
States facing anarchic stress are not only candidates for debt default, but coups and civil war. Rash dictators or jingoist parties, seeking domestic support, may unfreeze a frozen war.
America also experiences a crisis due to its mounting debts. Defence budget cuts, to include cuts in personnel and major weapons, are certain. Another blow can deepen the economic, political and military crisis U.S. is already facing. At the moment, U.S. power guarantees the global trading system; threats to international trade might increase (more pirates), increasing trading costs. No one in Asia, including Russia, wants China to fill the vacuum, even supposing a depression-vexed China (remember, it's worldwide) had the power to act globally.
Despite the growing financial woes, leading to the shrinking U.S defence budgets, U.S. government is trying to tackle the growing needs of its military regimen. It will be a seller's market for fast patrol boats, armed drones and former special operations soldiers capable of training a commando brigade.