Rich Galen
Regular readers know that I have the same understanding of global economics as a three-year-old has of quantum physics.

I watch CNBC's Squawk Box every morning because I know a lot about politics and don't need to watch (a) people I know talking about what I know or, (b) people I don't know making stuff up about things they don't know.

I have never made a dime in any investment so, hope springing eternal, I like to listen to people who have made multiple dimes.

About two weeks ago the economic world was frozen by the specter of Cyprus - CYPRUS - going broke.

Cyprus has a population of about 1.1 million people and a GDP of about $23.5 billion which puts it between Zambia ($23.7 billion) and Macedonia ($22.1 billion).

Put another way, Cyprus' GDP is about 1.5% of the U.S. GDP.

The point being, Cyprus is not a major economic power in the European Union, of which it is a member, but when it looked last week that the Cypriot economy might collapse the worlds' markets shuddered.

Put that aside.

Yesterday it was reported that the average unemployment figure for the European union - the average - had reached the astonishing level of 12 percent.

That's the average.

Of course, Germany has the lowest unemployment rate at 5.4 percent. Alles ist in Ordnung

The highest unemployment rates in the EU are in Spain (26.3 percent) and Greece (26.8 percent)

We have been told for decades that the world is shrinking and what happens in Upper Iguana (or Cyprus) has an impact on what happens in Kansas City.

That is apparently, as Sherman Potter might have put it, horse hockey. The European Union - taken as a whole - is the largest economic unit on the planet.

The official U.S. unemployment rate is 7.7 percent. According to the Department of Labor that means 12 million Americans are out of work.

If the U.S. unemployment rate were 26% it would mean that 40.5 million Americans would be looking for jobs.

Hours after the EU unemployment figures were released, the U.S. equity markets opened and they were so unimpressed with the continued recession in Europe that the Dow Jones Industrial Average ended yesterday with a gain of over 89 points to close at 14662 - an all-time high.

Where's the panic over the EU unemployment figures?

These data come on the heels of a report in March showing French private business in the sharpest decline since 2009, indicating the EU's second-largest economy is entering another recession.

If the world is, in fact, a closely interrelated economy, how is it that with Europe trending downward U.S. investors are gleefully buying equities?

Rich Galen

Rich Galen has been a press secretary to Dan Quayle and Newt Gingrich. Rich Galen currently works as a journalist and writes at