Monday, December 16, 2013

Industrial production picks up

November industrial production rose much more than expected (+1.1% vs. +0.6%), led by a 0.6% increase in manufacturing production, which is up at a 5.1% annualized rate in the past 3 months. Industrial production has now reached a new all-time high.

The contrast between the vitality of the U.S. economy and the ongoing struggles of the Eurozone economy (see top chart above) is stark, and can also be seen in the significant outperformance of the U.S. equity market (see chart below).

If we were doing as poorly as the Europeans, then we would really have something to complain about. As it is, all the evidence points to a substantial and ongoing recovery in the U.S. Things could be a lot better, to be sure, but the pervasive negative sentiment regarding the health of the U.S. economy is way overdone, in my view.


William McKibbin said...

What most Americans now are learning is that industrial production is irrelevant to their personal prosperity in the 21st century -- in fact, I might go as far as to say that the more industrial production increases, the lower the prosperity of Americans -- we all need to consider that industrial production has nothing to do with improving wages, home values, or the employment to population ratio -- said another way, industrial production is synonymous with waste in the US economy -- the good news is that accredited investors are getting rich off the military-industrial complex -- the bad news is that unaccredited investors are facing desperate times that will last the rest of the century -- in the US, industrial production is a drain on the US economy as most industrial production either directly or indirectly supports the military-industrial complex -- I wish I had better news for ordinary Americans -- I personally am more terrified of military-industrial Republicans and big government Democrats than I am of al-Qaeda...

William McKibbin said...

PS: More at:

Benjamin said...

I like the music, just turn up the volume.

As for Europe, the ECB is committing monetary asphyxiation. The Fed should be seeking a reduction in the dollar's value in relation to the Euro, and try for parity with the yen.

Why? The Bank of Japan is trying to stimulate. We should try to stimulate at least as much as the BoJ.

The People's Bank of China is being "accommodative" as they say, so their economy looks okay.

theyenguy said...

The health of US Economy was terminated by the bond vigilantes terminating creditism.

The bond vigilantes terminated the first engine of liberalism’s creditism, the debt trade, by calling the Benchmark Interest Rate, ^TNX, higher from 2.80%, on December 11, 2013. And the currency traders, terminated the second engine of liberalism’s creditism, the currency carry trade, by selling Major World Currencies, DBV, ie the Australian Dollar, FXA, and Emerging Market Currencies, CEW, ie the Brazilian Real, BZF, and buying a greatly rundown Japanese Yen, FXY.

Liberalism featured inflationism of nations and their banks

The bond vigilantes in calling the Benchmark Interest Rate, ^TNX, higher from 2.8%, on December 11, 2013, terminated the Milton Friedman Free To Choose Floating Currency Regime; and terminated liberalism’s system of sovereignty and seigniorage, that supported nation investment and created great wealth in financial organizations such as life insurance companies ie Prudential, PUK, automobile producers ie Ford, F, pharmaceutical companies ie Johnson & Johnson, JNJ, and industrial production companies ie Eaton, ETN.

Furthermore, the democratic nation state system of governance and the banker regime of investment are gone forever. Nations, EFA, such as South Korea, EWY, and banks, IXG, such as, SHG, are whitewashed tombs existing on the landscape of liberalism’s bygone era. Having been the global growth model, as well as the global industrial production model of liberalism, this great export nation’s trade seigniorage and investment seigniorage was destroyed by the bond vigilantes calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.48% on October 23, 2013.

With debt deflation strongly underway, the bond vigilantes have ended the Fed, and its monetary authority. Inasmuch as the Fed’s life flow, that is fiat money is dead; and its fruit, that is fiat wealth is dead; the Fed must be dead as well. The bond vigilantes did what Ron Paul could not do, they ended the Fed and inflationism; both are gone forever.

The bond vigilantes in calling an Elliott Wave 3 of 3 Up in the Benchmark Rate ,^TNX, on October 23, 2013, put The Mojo, its juice, and its joy in the life’s grave. Nothing, nada, is going to bring the Creature from Jekyll Island back, as Destructionism’s Wave, that is the Interest Rate on the US Ten Year Note, $TNX, has pivoted the world from the paradigm and age of liberalism into that of authoritarianism, terminating liberalism’s prosperity and introducing authoritarianism's austerity.

William McKibbin said...

Hot Topic: How to collect rents, commissions, and fees in foreign currencies (i.e., how to create wealth in diverse currency denominations) -- we live in the best of times for those with means...

William said...

@McKibbin - I think that you have lost your mind. What you wrote makes absolutely no sense.