Business & Finance Finance

Bahrain Heads For Disaster

Experts' thoughts and opinions regarding the recent crisis in the Middle East has been that the conflict would spread from country to country, and it has. What started in Tunisia moved to Egypt, Libya and now Bahrain, the conflict has become so bad that Bahrain has requested help from nearby Saudi Arabia. The Saudi response has been to send in troops and armored vehicles in an effort to quell the violence and find resolution. The reason that Saudi troops are being sent in so quickly is that Bahrain is the financial hub of the Persian Gulf area and house the assets and transactions therein.

The continued uproar in the Middle East being acted out by the under privileged population is also being seen in the United States, in places like Ohio and Wisconsin where unpopular austerity measures have met with demonstrations. The violence in Libya has already prompted a passive military presence on the part of the West (UK and US), but with the new conflict arising in Bahrain the United States will be hard pressed to enter either conflict. If the US were to become involved with one conflict they would be expected to be involved with all of them, resulting in a military venture far beyond the US's capacity.

This all means that the Middle East will probably be left to solve its own problems for the near future. A rise in civilian casualties is likely in addition to a further degree of "clamping down" by increasing military action against rebels. This will have result in loud outcries from the world's community in addition to a demand for Western intervention. The USD and GBP will suffer greatly on the forex currency exchange if these two countries become involved with the Middle Eastern conflict. This is a situation that has brought many Western countries to the point of being between a rock and a hard place.

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