Iceland has no army, no navy and no air force - but it does have riot police.

On Tuesday night the black-uniformed troopers came out to quell the latest riots in Reykjavik, which erupted in front of parliament. The building was splattered with paint and yoghurt, the crowd yelled and banged pans, shot fireworks and flares at the windows and lit a fire in front of the main door.

Yesterday the protesters gathered again, hurling eggs at the car of Geir Haarde, the Prime Minister, and banging cans on its roof.

The transformation of the placid island into a community of seething anger - there have been half a dozen riots in recent weeks - is more than a regional oddity.

In Riga last week 10,000 protesters laid siege to the Latvian parliament; yesterday hundreds of Bulgarians rallied to demand that the Socialist-led Government should take action or step down, in a second week of demonstrations, and last month the police shooting of a 15-year-old Greek boy led to days of running battles in the streets of Athens and Salonika.

The protests went beyond the usual angry reflexes of societies braced for recession. The Greek riots heralded sympathetic actions across the world, from Moscow to Madrid, and in Berlin the Greek Consulate was briefly stormed. The Riga unrest spread rapidly to Lithuania. It is, some say, just the beginning: 2009 could become another 1968 - a new age of rebellion.

The LSE economist Robert Wade addressed about 1,000 Icelanders recently at a protest meeting in a Reykjavik cinema, warning that large-scale civil unrest was on the way. The tipping point, he said, would be this spring.

“It will be caused by the rise of general awareness throughout Europe, America and Asia that hundreds and millions of people in rich and poor countries are experiencing rapidly falling consumption standards; that the crisis is getting worse, not better, and that it has escaped the control of public authorities, national and international,” he said.

The global liquidity emergency became a full-blown crash so quickly that there was no time to hold governments to account. Now leaders all over Europe have declared themselves to be the saviours of the economy and are nationalising assets, extending loans and guarantees to failing banks and manufacturers. But the price is high: unemployment is starting to soar and cuts in public spending are hurting hospitals, schools and universities. Personal bankruptcies are at record levels.

Every segment of society has been hit, but it is the young who feel the pain most - and just as in 1968, it is they who are leading the rebellion.

The Greek disturbances, the worst since 1974, were triggered by the killing of the teenager, but the anger was stoked by a sense that the young were going to have to pick up the bill for the miscalculations of the political class. Unemployment among Greeks aged 15 to 24 has reached 21.2 per cent; for 25 to 34-year-olds it is 10.5 per cent. The good years have come to an end suddenly.

The boom in Iceland led to the few narrow streets of the capital becoming jammed with expensive 4×4s. Latvia had double-digit growth for years; now GDP is set to contract 5 per cent in the coming year and Latvian youths are beginning to rail against mismanagement and corruption.

In the EU, migration was always a way out of a tight domestic labour market. No more: the sheer magnitude of the recession means there is no easy escape. There are reports of anti-immigrant trouble brewing in Spain. Usually at this time of year migrant workers, most of them from Morocco, pile into the country to pick strawberries. This year the Spaniards are making it clear that they are unhappy about migrants taking jobs.

Each flare-up touches on a separate aspect of the crisis. In Greece it was partly about the failure of the education system (as in 1968). In Vilnius it was over high taxes. In Iceland it is about massive debt. In Russia unrest in Yekaterinburg and Vladivostok was about dearer car import duties.

But there are common threads. Across Europe, protesters demand a change of government. Politicians in wealthier countries can try to prop up banks and industries, but it does not work in heavily indebted nations with bloated and exposed financial sectors.

And there is a shared shock that the good times have gone. “The explosion conceals a compressed desperation,” the Greek psychology professor Fotini Tsalikoglou said of last month’s outburst in Athens. “Many young people live with the unbearable knowledge that there is no future.”

New age of rebellion and riot stalks Europe

The U.S. Army is to invest $6 million in riot equipment, a fact that has furthered fears that troops will be used inside the U.S. in order to quell any civil unrest resulting from the ongoing economic crisis.

The U.S. Army Contracting Agency, based at Fort Leavenworth, Kansas, has a post on the Federal Business Opportunities website, requesting the equipment and has received several notices of interest from potential vendors.

The request titled “84–RIOT EQUIPMENT” outlines the need for hard polyethylene Shin and Chest Guards, shock absorbing Forearm Protectors, Interior leg brace supports as well as knee and ankle protectors.

The ACA asks that the equipment be able to “safely withstand a substantial blow… from non-ballistic weapons or flying debris”.

The Solicitation also states:

The associated North American Industrial Classification System (NAICS) code for this procurement is 453998 with a small business size standard of $6M. This requirement is a [ Small Business ] set-aside and only qualified offerors may submit bids.

Interested vendors include Irish Brigade inc., manufacturers of hunting and safety gear with facilities located in the heart of Kansas City , Missouri. Federal and Military resource company MCLEARVISION, LLC is another interested party, as is Kentucky based U. S. CAVALRY STORE, INC.

In our article yesterday we highlighted the fact that Urban warfare training drills are taking place across the country as top analysts as well as officials predict a potential “summer of rage” across Europe and America as civil unrest from the economic fallout builds.

Are such drills really for the purpose of preparing troops for foreign combat zones? Undoubtedly - but other factors indicate that the drills may very well also be aimed at preparing troops for dealing with mass civil unrest as the economic crisis worsens.

There’s no question that U.S. authorities have been closely observing riots that have toppled governments in Iceland and Latvia and also threatened to do so in several other European countries. The fact that they have contingency plans in place to deal with such scenarios should they unfold in America cannot be disputed.

Indeed, before a media exposé forced them into a denial, Northcom revealed that one of the duties of at least 20,000 active duty troops that are being placed inside the United States would be dealing with “civil unrest and crowd control”.

The U.S. Army War College in November released a white paper called Known Unknowns: Unconventional ‘Strategic Shocks’ in Defense Strategy Development. The report warned that the military must be prepared for a “violent, strategic dislocation inside the United States,” which could be provoked by “unforeseen economic collapse,” “purposeful domestic resistance,” “pervasive public health emergencies” or “loss of functioning political and legal order.” The “widespread civil violence,” the document said, “would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.”

U.S. Army To Buy $6 Million Of Riot Equipment - Will The Economic Crisis Lead To Civil Unrest?