U.K. Anarchy Could Spread Across the Pond

by John M. Curtis
(310) 204-8700

Copyright August 10, 2011
All Rights Reserved.                                         

             When 29-year-old South Asian, father-of-four Mark Duggan was shot by Tottenham Police Aug. 7, it triggered a race riot that’s spread like wildfire to several of Britain’s largest cities, including London and Birmingham.  While Duggan’s death was apparently the trigger, a more close look at Prime Minister David Cameron’s Tory government shows punishing cutbacks to Britain’s welfare programs and public service jobs.  After acquiescing for several days, Cameron finally put his foot down when three men protecting their neighborhood were killed deliberately by a hit-and-run anarchist.  “We need a fight-back and a fight-back is underway,” said Cameron, promising a heavy police presence to deal with the street violence that threatens to turn the U.K into another Syria, where the Bashar Assad regime continues to mow down protesters with impunity while the world watches.

            Saying “nothing is off the table,” Cameron warned protesters to get off the streets.  He vowed to break the anarchist’s “culture of feat” that now plagues the U.K.’s otherwise orderly streets.  Cameron didn’t rule out using the dreaded “water cannon” used in Northern Ireland during the Sin Fein’s deadly protests.  “This is not a race issue.  The family has received messages of sympathy and support from all parts of the community—all races, all faiths and backgrounds,” said Tariq Jahan, whose 21-year-old son was killed Aug. 9 in Birmingham.  While Jahan doesn’t see the race issue, many South Asian minorities, largely Pakistani and Indian, haven’t responded well to Cameron’s draconic 80-billion pound [$130 million] cut to social services and police.  He hopes to reduce the U.K’s 14-billion-pound deficit, roughly 12% of the nation’s $1,225 billion GDP.

            With austerity programs implemented on both sides of the Atlantic, some are wondering whether the U.K’s riots could spread to the U.S. when Congress is forced to implement draconic budget cuts to reclaim Standard & Poors recent downgrade from AAA to AA+ of U.S. debt.  When S&P downgraded U.S. debt last Friday, Aug. 5 after the close the trading, they set off worldwide stock market meltdown.  Whatever economic problems exist on both sides of the Pond, they didn’t need S&P’s jolt to the world’s biggest economy.  S&P’s arbitrary downgrade, not supported by Moody’s and Fitche’s credit rating agencies, tried to make a political point about the partisan warfare that practically defaulted the country.  S&P didn’t need to make the Sovereign downgrade, given the Federal Reserve Board’s considerable resources to meet all U.S. debt obligations.

            Since Monday’s colossal 634-point sell-off, any bad news can no escalate to crisis proportions.  News today of Europe’s sovereign debt crisis, including expected bankruptcies of Greece and possibly Italy, spooked world markets, triggering another round of pernicious short selling.  With trading curbs, especially on short selling, the market is at the mercy of traders making a killing on the market slide.  While few connect the dots, today’s 540-point sell-off reverses yesterday’s 400-point gain, raising new uncertainty on how far the correction will go.  With the Dow Jones Industrials finishing at 10, 719, it still has just under 500 points for a full 20% correction.  Yesterday’s bounce reflects the trigger-happy uncertainty of Wall Street’s biggest funds, unable yet to commit to long-term positions.  S&P’s downgrade, valid or not, damaged the U.S. stock market and national economy.

            When economic times deteriorate, any bit of bad domestic or world news can trigger a sell-off.  It’s beyond ironic that Wall Street’s biggest brokerage house caution investors about bailing out when they routinely dump shares at the bat-of-an-eye.  London’s unrest unnerves global markets watching one of the world’s most stable government struggling to maintain order.  Cameron deployed some 16,000 London police in an intimidating show of force.  When you consider Syria’s brutal crackdown on anti-regime rebels, Scotland Yard and the London Police face a daunting challenge.  Cameron’s show of force with armored personnel carriers and convoys of police seems to have contained runaway anarchy.  Over 800 arrests have been made since Monday, showing that Cameron means business when it comes to stopping the violence and restoring order on the streets.

            All eyes are on Cameron and the U.K to see how one of the world’s most genteel societies deals with street unrest.  Unlike Syria that just opens fire on its citizens, the U.K. has shown the proper kind of restrain before pulling out the big guns.  With Cameron’s punishing austerity programs, street unrest could spread to the U.S. once the full brunt of Obama’s cuts kick in.  All governments must consider the needs of the people before they take out a meat cleaver to deal with budget deficits.  With under one percent GDP growth, the U.K., like the U.S., face growing budget deficits into the foreseeable future.  Pulling the rug from underneath vulnerable minorities and refugees is no way to treat newcomers, not yet assimilate into British society.  If the U.S. pays any attention, it should think twice before listening to the Tea Party and slashing budget for important entitlement programs.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com.and author of Dodging the Bullet and Operation Charisma.

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