We have been in a Depression the last year & worst to be felt is coming in 2012.

While there have been some signs of the economy improving, they are fragile at best & being hindered from being better by the GOP blocking efforts by the Obama administration to provide economic stimulus. But what Krugman chillingly points out is the situation in Europe that is a grave danger not only to itself, but to the US economic & political situation.

The world economy & stability politically is teetering on the edge & dangerously close to authoritarian leanings and yes, revolution. Global revolution.

My family comes from Europe and I spend time there every summer. This last summer was very telling. Discussions in the Biergartens with my German family & friends were of wanting to go back to the Deutsch Mark & closing borders. Some feel very much pangs of Nationalism and others fear of memories from Germanys past. No one I spoke to either in Germany or from Spain, Italy, France or UK felt ok with the austerity measures being proposed & in fact the outrage expressed towards the banks, the EU and their own governments were filled with discussion of revolution & protest should things go that direction.

I fear that in the next 12 months that there could be a breakout of not only mass protests and revolt, but all out revolution both across Europe but also the US. I believe that groups with right-wing authoritarian leanings like the ones growing with power in Sweden, Finland, Norway, Austria, Italy, Spain etc have plans to take things in the direction similar to what Krugman described happening in Hungary. And if any one questions if it could happen here or that the US could become a police state or authoritarian establishment, I suggest looking at where we currently are and the response to the OWS protests around the country.

And dont kid yourself - the various Governments including our own know this is what we are teetering on.