Turning Point?

Who said August is supposed to be a slow news month? There is a lot happening while people begin their vacations.

I think we may look back on the ten days that have begun August, 2011 as one of those historical turning points. I'm not sure what we're turning to, but

Just to go down the list, in no particular order:

1. Riots in London
2: S&P Downgrades US Debt from AAA to AA+
3. Global Market unease: Dow Jones Industrials drops 500 points Monday, jumps back 300 Tuesday, drops back below Monday's close on Wednesday.
4. President Obama gives a speech Monday to calm markets, says nothing important, markets ignore.
5. Euro debt crisis gets worse as investors flee Spanish, Italian bonds, as well as French banks.
6. 30 Americans, 7 Afghans killed in the shooting down of a helicopter in Afghanistan.
7. It seems like ancient history now, but it was only a week ago (August 2) that the President signed the extension of the debt ceiling.
8. The Chinese Navy launches their fist aircraft carrier.

I really don't know where these events will all lead us, but I do think that this month has shown some serious strains and ongoing changes in the world. We have known that the path we have been on in many of these stories is unsustainable. The question is what happens when the bottom does finally drop out? We may be learning.

David Rothkopf, writing in FP.com, has a very pessimistic list of where things could be heading. Unfortunately, I think he may be right on some of these.