EU Debt Crisis Reaching Financial Meltdown

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PARIS -- One day after being sworn in as Italy's new prime minister, Mario Monti faces the daunting challenge of saving his nation from financial ruin.
Monti, an economist and former commissioner of the European Union, was appointed premier by Italy's president following the resignation of Silvio Berlusconi on Sunday.

Monti's task is to build a government that will steer Italy out of its debt crisis, but many believe it's too little, too late.
Some experts suggest an EU split could be on the horizon.
Experts: Sun Setting on EU

Although European officials behave as if they have a solution to the debt crisis, the EU now more than ever is staring into a financial abyss.
Europe has bet everything on the euro, and it's inconceivable to many that it could cease to exist in its present form. But more and more economists say that's exactly what's coming.
The strength of the euro is helping perpetuate a debt crisis that is spreading like a contagion, from Greece to Italy and now France and Spain.
Italy is trying to save itself by changing leaders and policy, but many experts believe ***no policy or leadership change will keep it from going bust*** it will go bust no matter what, and no policy or leadership change can stop it.
"One country after another is finding that it cannot finance itself," British Economist Edward Hugh told CBN News.
"For Spain and Italy, they're never going to arrive at a complete rescue as long as the eurozone exists because they're too big to save," he explained.

Recipe for War?
Reports are circulating that France and Germany are considering kicking nations like Greece and Italy out of the eurozone.
And any nation forced out of the eurozone risks a level of social chaos that could eventually lead to the possibility of civil war.

In a worst case scenario, banks would close, supermarkets would be emptied and the wealthy would likely flee the country.

Vladimir Lenin, communist leader of Russia's 1917 October Revolution, said the quickest way to undermine capitalism is to debauch the currency. Monetary disasters are almost always followed by severe social unrest.
Now the French are in the crosshairs of default. France got a scare when Standard & Poor's mistakenly announced it was downgrading its credit rating. But some believe it is a downgrade the ratings agency will be compelled to make eventually.
"Nobody wants to lose AAA, let alone BBB, which is what a number of European nations are facing," Hugh said.

EU Contagion Reaching US

The head of European Central Bank says a "double dip" recession in Europe is now a virtual certainty. Such an event would drag down U.S. exports and America's economy.
One Wall Street investment house, MF Global, has already gone down because of exposure to Europe.

Many U.S. banks face the same predicament, while U.S. government debt keeps rising toward the debt levels of Greece and Italy. It's why some analysts believe what is happening in Europe is coming to America.

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CBN News
Dale Hurd

Dale Hurd

CBN News Sr. Reporter

A CBN News veteran, Dale Hurd has reported extensively from Western Europe, as well as China, Russia, and Central and South America.  Since 9/11, Dale has reported in depth on various aspects of the global war on terror in the United States and Europe.  Follow Dale on Twitter @HurdontheWeb and "like" him at