AN IMPORTANT MOMENT IN HISTORY.

AN IMPORTANT MOMENT IN HISTORY. On Tuesday July 31, David Hale wrote in the Wall Street Journal that “the world economy is currently experiencing a level of growth unsurpassed in human history.” On Wednesday August 1, Edward Yardeni wrote in the Financial Times that “The global economy is in the midst of the greatest boom of all times.” As Hale notes, world growth has been almost 5% for over three years. Both Hale and Yardeni make their point on the basis of how widespread global growth is. Hale points out that the growth rates of almost 120 countries will be greater than four per cent this year. Yardeni points out that at least three billion people are currently benefiting from globalization. I have to acknowledge, as Hale and Yardeni both do, that there are risks. Hale begins his article with the recent volatility of world stock markets and Yardeni discusses the danger of a credit crunch. And following the publication of these articles, US stock markets declined sharply during the rest of the week.