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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (128845)	12/17/2012 1:52:41 PM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

And things aren't so great here in the US either, despite trillions being pumped into our economy via deficit spending, ZIRP, and money printing. The reason is that these measures destroy capital formation, which comes from savings, and investment incentives due to the uncertainty of when things will normalize. So then you get shitty macro metrics like this as a result. You'll note on the first page of the report, the General Manufacturing Diffusion Index has been below the zero line for the whole of the second half of 2012. That's a recessionary reading and it's unambiguous: ny.frb.org The December 2012 Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to decline at a modest pace. The general business conditions index was negative for a fifth consecutive month, falling three points to -8.1. The new orders index dropped to -3.7, while the shipments index declined six points to 8.8. At 16.1, the prices paid index indicated that input prices continued to rise at a moderate pace, while the prices received index fell fi ve points to 1.1, suggesting that selling prices were flat. Employment indexes pointed to weaker labor market conditions, with the indexes for both number of employees and the average workweek registering values below zero for a second consecutive month. And you get inflation that is running almost twice what the Fed says it is. As per the below, it's running at 3.7%, instead of the tame 2% the Fed claims. Combine 3.7% inflation with a shrinking manufacturing base and you have stagflation.