In the following story, the European's are expressing their conclusion that history is about to repeat itself, a la the Great Depression, if the US and Obama Administration insist on promoting protectionist trade policies in the "Stimulus" bill:


The European Union warned the U.S. yesterday against plunging the world into depression by adopting a planned "Buy American" policy, intensifying fears of a trade war, the Times of London reported.

The EU threatened to retaliate if Congress went ahead with sweeping measures in the $800 billion stimulus plan to restrict spending to American goods and services.

The plan generally prohibits the purchase of foreign iron and steel for any stimulus-funded infrastructure project with the goal being to boost the U.S. iron and steel industries, which have been pummeled by the current recession.

Gordon Brown was caught in the crossfire as John Bruton, the EU Ambassador to Washington, said that "history has shown us" where the closing of markets leads - a clear reference to the Depression of the 1930s, triggered by U.S. protectionist laws.

The EU warnings came in letters to political leaders in Congress, Treasury Secretary Timothy Geithner and Secretary of State Hillary Clinton. Bruton urged them to respect the decision taken by the G20, the world's leading economic nations, in Washington last November to resist protectionism as a defense against the crisis. They are expected to meet again in London in April.