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Insolvent US Debt Bubbles Bursting As Production Tanks, So Long US Economy! Reader 01/03/2019 (Thu) 15:39:22 Id: 7259fd [Preview] No. 13552
BE PREPARED: >>>/prepare/1 | https://archive.fo/elYwR
https:// web.archive.org/web/20180910185746/https:// 8ch.net/prepare/res/1.html

U.S. private sector productivity rose by 2.3% during Q3, according to the Bureau of Labour Statistics, following a massive hike in deficit spending by the Trump Administration.

These data matter.

If each of us produces more each year, we make ourselves richer … but more importantly, through the progressive income tax system, we also make each other richer.

However, longer term, annual U.S. productivity gains have slipped from an average of 2.3% during the seven decades starting in Q4 1948 to just 1.1% in the decade following the start of the 2007 financial crisis.

Worse, there are growing signs that U.S. labour productivity is not just slowing, it’s in a freefall.

The idea that American productivity is collapsing seems ludicrous. This, during a time of an increasingly educated population, exploding technology and communications power, as well as the proliferation of AI, mobile devices and robotized manufacturing processes.

However, a range of forces are pushing in the opposite direction:

• The U.S. Federal Reserve’s low interest rate policies have made it more profitable for businesses to buy back stock than reinvest in technology.

• Bail-outs of large U.S. banks, automotive companies and other key sectors have stifled private sector innovation for a generation.

• Increased government borrowing has enabled vast, inefficient bureaucracies at the U.S. federal, state and local levels to avoid reform.

• America’s seniors are draining productive resources from the economy by collecting pensions and healthcare benefits they never fully funded.


Reader 01/03/2019 (Thu) 15:39:49 Id: 7259fd [Preview] No.13553 del
Yesterday, when Markit reported that the US manufacturing PMI tumbled to a 15 month low, we were wondering how much longer the "other" PMI can continue to defy gravity by printing ridiculously high numbers month after month. The answer, it turns out, was about 24 hours, because moments ago the Institute for Supply Management reported that the December ISM plunged from 59.3 to 54.1 - precisely where the PMI print suggested it should - which was the lowest print in the Mfg ISM series since November 2016...

... and the biggest one month drop going back to the financial crisis, when in October 2008 it dropped by 9 points.

Printing just days after both Chinese manufacturing surveys printed in contraction territory, spooking markets, today's ISM report was a disaster with virtually every subindex tumbling:

New orders fell to 51.1 vs 62.1
Employment fell to 56.2 vs 58.4
Supplier deliveries fell to 57.5 vs 62.5
Inventories fell to 51.2 vs 52.9
Customer inventories rose to 41.7 vs 41.5
Prices paid fell to 54.9 vs 60.7
Backlog of orders fell to 50.0 vs 56.4
New export orders rose to 52.8 vs 52.2
Imports fell to 52.7 vs 53.6


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