This morning's key headlines from GenerationalDynamics.com:

• Libya citizens storm Benghazi Islamist militia hq in backlash against Consulate attack
• Bailout talks for Greece collapse once again
• Capital flight is leading to the disintegration of the eurozone
• Fifteen killed in violent anti-American protests across Pakistan

Libya citizens storm Benghazi Islamist militia hq in backlash against Consulate attack

Tens of thousands of Libyan citizens in Benghazi, chanting "No, no, to militias" and "The ambassador was Libya’s friend," marched in a rally against Ansar al-Sharia, the Islamist militia believed to be responsible for the September 11 attack on the U.S. Consulate that killed American ambassador Chris Stevens. Hundreds of protesters stormed the compound of the extremist group, evicting militiamen and setting fire to their building. Last year, Gaddafi's regime warned that if he were gone, then the militias in the Benghazi area would declare an Islamic Emirate and ally itself with al-Qaeda. But now, the residents are lashing out against Ansar al-Sharia, the main Islamic extremist group in the city. AP

Bailout talks for Greece collapse once again

In a familiar scene that we've seen many times before, the latest talks between Greece and the leaders of the EU "troika" of organizations bailing out Greece -- the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) -- are leaving Athens, after Greek officials failed to reach an agreement with the troika on the austerity measures that will have to be implemented in return for another bailout. The official statement is that the talks are going to take a "brief pause" for a few days. Since we've seen this so many times before, we know exactly what's coming: Greece will commit to a set of austerity measures. The troika will authorize the bailout, kicking the can down the road. The austerity measures that Greece committed to will not be implemented. Then, when it's time for another bailout decision, the scenario will be repeated. Kathimerini and Bloomberg

Capital flight is leading to the disintegration of the eurozone

In the 12 months ending July 31, a total of 326 billion euros were pulled from banks in the "troubled" nations -- Spain, Portugal, Ireland and Greece. This coincides with a roughly similar increase in deposits into the banks of the seven "core" countries, including Germany and France. That’s leading to a fragmentation of credit and a two-tiered banking system, that's becoming increasingly unsustainable. According to one analyst, "Capital flight is leading to the disintegration of the euro zone and divergence between the periphery and the core. Companies pay 1 to 2 percentage points more to borrow in the periphery. You can’t get growth to resume with such divergence." Bloomberg

Fifteen killed in violent anti-American protests across Pakistan

At least 15 people were killed and more than 200 wounded in anti-American protests across Pakistan, from Karachi to Lahore to Islamabad to Peshawar. The protests were made worse by what was apparently a very dumb move by Pakistan's government. On Thursday, the government said that Friday would be "Love the Prophet Day" holiday in reaction to the "Innocence of Muslims" film. Thus, many millions of people had Friday off, leaving them free to take part in the protests. Dawn and Al-Jazeera

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