BOCA RATON, Fla. -- The United States' economy has "in absolute and relative terms been a better bet" than other economies around the globe -- and the death of Osama Bin Laden may well change how the rest of the world looks at America's prospects, CNBC Analyst and Commentator Ron Insana said Monday morning.
The event could be a "gamechanger" in respect to both the outlook for reduced tensions in the Middle East, the state of the United States economy and the leverage that President Barack Obama has in dealing with the United States' debt and $1.6 trillion annual deficit.
President Obama became a clear commander in chief Sunday night, Insana said, by "finally (killing) this bastard, to be quite frank,'' Insana said.
This means that political critiques that the president is somehow a "Muslim Manchurian candidate" beholden somehow to Islamic extremists "will have to stop,'' Insana said.
"The president made his bones last night and it changed the dynamics last night," he told 760 executives and managers attending the 2011 Operations conference of the Securities Industry and Financial Markets Association.
A country thought to be in decline showed its resourcefulness and focus in felling the leader of the Al Qaeda terrorist organization, he said. And the long-term consequences "may be more profound than people are discussing,'' he said.
The United States, from economic and political standpoints, is looking "increasingly stable." By contrast, China is experiencing uneven growth and inflation. These conditions are affecting other emerging markets such as India and Brazil.
Meanwhile, European nations are experiencing tightening monetary and fiscal policies, he said.
Amid this backdrop, the U.S. "in absolute and relative terms" has "been a better bet."
A day ago, "we were thought a country in decline," Insana said, akin to Greece now and Rome in ancient times. Indeed, 25 percent of Americans believe the country is in Depression, he said, and another 23 percent a deep recession.
But Greece and Rome are "extremely faulty analogs," he said.
The U.S. economy is still $15.4 trillion a year, triple that of either China or Japan, the runners-up.
The domestic manufacturing industry is picking up at a rate of 9% a year, he said, with lots of Camaros, Mustangs and Challengers on the road to evidence a resurgence, for instance, in automating.
Basic manufacturing is strong, as are services industries. Beyond that, the country has withstood three major economic crises in the past 15 years that should only come along once every 23,000 years, by one estimate, he said.
"The abnormal has become the norm,'' he said, with the country withstanding the worst financial crisis since the Great Depression and the worst recession since the early '80s.
His public speaking business has exploded, New York is "as busy as I've seen in 10 years,'' stores were flooded and bags full at Christmas, and stock markets have doubled in price in two years -- without Main Street investors participating.
With this event, "the mood may begin to change on Main Street,'' he said. "It's clearly changed on Wall Street."
He said the 1.8% economic growth reported in the first quarter was a "one-off" event, as government stimulus spending waned.
And the weekend's stealthy takedown of Osama Bin Laden may start attitudes changing, toward the idea that the U.S. economy is fundamentally stronger than it's given credit for.
The "tenacity of military forces" who went into Pakistan "without the permission of the Pakistani government" will send "a chlling message around the world."
The move puts foes on notice that "whatever missteps" the country made in the pursuit of Bin Laden, including wars in Iraq and Afghanistan, and whatever missteps caused its financial crises and spread them to the world, "we don't stop and we don't give up."
And in this case, the general expectation, he said, President Obama was the "least likely candidate to kill Osama." Yet he "gave the order and it was carried out."