Ron Insana: Global Economic Environment Resembles Troubled 1937

Friday, 05 Sep 2014 08:09 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The current global economic climate shares a lot in common with the years leading up to World War II, and that's not a good thing, says CNBC contributor Ron Insana.

"Like today, in 1937, the U.S. and the rest of the world were five years removed from the first leg of the Great Depression and beginning to find renewed confidence in the pace of global economic growth, or, in some cases, ignore instances in which economic activity left something to be desired," he writes in a commentary for CNBC.

"The combination of tighter monetary and fiscal policies [that resulted] proved ruinous, both at home and abroad."

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!

Insana is now more worried about Europe, Japan and China than the United States. "It appears that the rest of the world seems almost eager to repeat the policy errors of the past, both economic and geopolitical," he writes.

For example, Japan already has implemented a sales tax increase, which counters "the beneficial policies of its central bank," Insana notes. And the European Central Bank "remains dangerously behind the curve in fighting deflation."

"From Moscow to Madrid, the geopolitical and economic issues are thorny, maybe the thorniest we have seen since the period prior to the onset of the calamities of the late 1930s and '40s," he writes.

"Mark Twain famously noted that history doesn't repeat, but it rhymes. Let's hope the iambic pentameter to which the world is listening to now can be re-written before it becomes too repetitious for comfort."

Some economists were unimpressed with the interest rate cuts and quantitative easing announced by the European Central Bank Thursday.

"At the margin, [the rate cuts] may have some small positive effect on bank lending and activity and perhaps give the euro another downward nudge," Jonathan Loynes, chief European economist at Capital Economics, tells Reuters.

"But these moves are no substitute for the much more powerful policy action which looks increasingly necessary to prevent a renewed recession."

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  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
Zip Code:
Privacy: We never share your email.
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

John Kasich 2016: 7 Key Political Positions of GOP Presidential Hopeful

Friday, 19 Dec 2014 22:22 PM

John Kasich has been involved in the national scene since the 1980s as a U.S. congressman and popular governor from Ohio . . .

Stocks Rise in Best Week Since October as Energy Industry Gains

Friday, 19 Dec 2014 16:56 PM

Oil and gas companies led the stock market up Friday, helping the Standard Poor's 500 index notch its second-best week . . .

Fed's Williams Sees June as Time to Start Considering Higher Rates

Friday, 19 Dec 2014 15:10 PM

Federal Reserve Bank of San Francisco President John Williams said next June will be the right time to consider when to  . . .

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.

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