Insana: Commodity Prices Signal Possible Global Recession

Sunday, 17 Aug 2014 08:39 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The recent drop in commodity prices has ominous implications for the economy, says CNBC contributor Ron Insana.

The S&P GSCI commodity index has dropped 3 percent this month, as sluggish global economic growth curbs demand.

"I expect to see more declines in the future," Insana writes on CNBC.com.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

"So, what are commodities telling us, not only about inflation, but about global growth? Outside of the U.K. and U.S., the message of the markets seems quite clear: the world is again on the cusp of declining growth and, possibly, recession."

Japan's economy shrank at an annual pace of 6.8 percent in the second quarter, while the eurozone registered zero growth, Insana notes. And China may not reach its 2014 growth target of 7.5 percent, he says. Other emerging-market economies are hurting too.

"One could also argue that monetary, and fiscal, policies in Europe, Japan, Russia and China are not sufficiently loose to shore up these struggling economies," Insana writes. "Commodity markets are making that quite plain."

Sara Johnson, senior research director of global economics at IHS, also has turned more pessimistic about economies worldwide.

"The message is clear: the global economy will see very little acceleration this year," she told the Los Angeles Times. Johnson recently cut her forecast for global growth this year to 2.8 percent from 3 percent.

But she doesn't expect a global recession, which she defines as growth of under 2 percent.

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

Related Articles:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Barclays Forecasts Global Markets Will Rise 9 Percent in 2015

Thursday, 20 Nov 2014 13:23 PM

Stock markets worldwide will rise next year as the U.S. economy expands while Japan and Europe try to spur growth with m . . .

SEC: Ebola Has Become the Latest Stock Scam

Thursday, 20 Nov 2014 12:17 PM

U.S. regulators on Thursday suspended trading in four small over-the-counter stocks of companies that they said have bee . . .

SEC Official: Stop Spending Time Writing Rules to Protect Millionaires

Thursday, 20 Nov 2014 12:16 PM

A top U.S. regulator on Thursday decried a push by some investor advocates to change the rules that define who can quali . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved