The Next Boom - America is Back

[Jordan]

Surely you remember my last post on the booming economic recovery in the United States, which laid out the thesis for why low energy prices and low financing costs would boost the American economy. If you don't, you can find it here: America's Future Looks Bright.

This week Barron's ran a cover story with the same thesis, promising millions of jobs in the next 8 years, low energy costs, and a booming economy.

Some key notes from the cover story:

Natural gas here costs $3.55 per million British thermal units, versus roughly $12 in Europe and $16 in Japan.

Over the past six years, U.S. production of petroleum and natural gas has jumped from 15 million barrels of oil-equivalent a day to 20.1 million, a 20-year high. Over the same period, imports have fallen from 14 million barrels a day to below eight million, a 25-year low.

Given our expanding reserves and record inventory, commodity strategists expect U.S. natural gas to stay between $3 and $5 per million BTUs for years -- well below prices abroad.

Industrial land averages $10.22 a square foot across China, but rises to $11.15 in the coastal city of Ningbo and $21 in Shenzhen -- compared with $1.30 to $4.65 in Tennessee and North Carolina. "Within five years, the total cost of producing many products will be only about 10% to 15% less in Chinese coastal cities than in parts of the U.S. where factories are likely to be built,"

But BCG's Sirkin conservatively estimates that 2.5 million to five million manufacturing positions will be added by 2020, which could shave two to three percentage points from our unemployment rate, now near 7.8%.

Here's a link to get past the paywall: https://www.google.com/search?q=the+next+boom

 

[Michigan11]

Fuck Yeah!

 

[FindLiberty]

Ammo production should shoot up in America since there seems to be supply shortages!

Jobs jobs jobs, maybe 2nd and 3rd shifts?

 

[oyarde]

While it is true energy costs are lower here than socialist Europe , I do not see it creating jobs, higher costs , due negatively effect jobs and the price of food, but lower costs , I do not see that effect .

 

[oyarde]

I have my doubts, I doubt America is back , or will ever be so in the near future , I also doubt unemployment gets any better .I think what you see now , is likely full employment.

 

[The Goat]

Future economic headlines

The economy is back!

US economy grows by 25%

Valuve of dollar drops by 50%

 

[Michigan11]

Yeah it's back baby

 

[KingRobbStark]

Venezuela has a large oil reserve too, and as a result the energy cost is very cheap. But guess what. The people are still poor as fuck. Just because the fuel is cheap doesn't make the car any less expensive.

 

[-C-]

Honestly I don't know what QEing at a rate of 85 billy a month is doing to recover anything. The fed won't be able to sustain 0-1% discount window forever...so where is the cheap money going to come from? In the next 8 years when interest rates finally start creeping up, where will the cheap money be to promote this growth? Unless of course the government gets involved, which is like taboo around here.

 

[RickyJ]

North Dakota apparently is the only state in the union that hasn't gone through the long recession/depression that the rest of the nation is still going through. There is basically full employment there and I am seriously thinking of moving there soon.

 

[oyarde]

Basically , I have seen nothing , at this point that makes me feel better, I am no longer feeling optimistic....

 

[Chester Copperpot]

North Dakota apparently is the only state in the union that hasn't gone through the long recession/depression that the rest of the nation is still going through. There is basically full employment there and I am seriously thinking of moving there soon.

they are the only state in the union that has a state bank so they didnt boom as much and therefore didnt bust as much. Every state should have a state bank.

 

[DamianTV]

Let me ponder the current situation for a moment.

Wall Street - Record Boom again. Many have the power to print money, or borrow from buddies that have the power to print money.
Main Street - Record Unemployment. None have the power to print money. Only to borrow money into existence while creating that debt, plus interest.

Conclusion: The Boom is Bullshit.

 

[ronpaulfollower999]

 

[ronpaulfollower999]

North Dakota apparently is the only state in the union that hasn't gone through the long recession/depression that the rest of the nation is still going through. There is basically full employment there and I am seriously thinking of moving there soon.

Oil boom.

 

[Origanalist]

Let me ponder the current situation for a moment.

Wall Street - Record Boom again. Many have the power to print money, or borrow from buddies that have the power to print money.
Main Street - Record Unemployment. None have the power to print money. Only to borrow money into existence while creating that debt, plus interest.

Conclusion: The Boom is Bullshit.

It's pure doublespeak.

 

[Tod]

Venezuela has a large oil reserve too, and as a result the energy cost is very cheap. But guess what. The people are still poor as fuck. Just because the fuel is cheap doesn't make the car any less expensive.

Years and years ago I remember some discussion about natural resources as a stand-alone source of wealth being much much less beneficial to the overall wealth of the holders than about any other source of wealth. Look at the middle eastern countries: after decades of oil production, every single one of their citizens should have enough saved up to be wealthy, but it doesn't work like that and that is apparently typical for any area or resource.

Probably has something to do with the old adage, easy come, easy go, coupled with the wealth somehow always being concentrated in fewer and fewer hands.

 

[phill4paul]

Wow. Way to go Obama! Third term?

 

[Henry Rogue]

Surely you remember my last post on the booming economic recovery in the United States, which laid out the thesis for why low energy prices and low financing costs would boost the American economy. If you don't, you can find it here: America's Future Looks Bright.

This week Barron's ran a cover story with the same thesis, promising millions of jobs in the next 8 years, low energy costs, and a booming economy.

Some key notes from the cover story:



Here's a link to get past the paywall: https://www.google.com/search?q=the+next+boom

LOL, America is back to what, the stone age? You can predict what may happen in the next 8 years, but to say the the economy is booming now is one he!! of a stretch and thats what your title suggests.

 

[Confederate]

Wow. Way to go Obama! Third term?

Pffft, terms are for lowly presidents. Emperor Obama!