“Business spending, after a long recession hiatus, is staging a comeback,” said Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio. “Payrolls were cut too deeply over the last year, and hence, there will be a need to rehire to some degree.”
Granted, business spending is staging comeback in U.S. dollar or nominal terms from extremely depressed levels. Business spending adjusted for inflation (CPI) and currency devaluation (GOLD), however, suggest more of a continuation than a comeback. From this perspective, the economic comeback so highly touted on F-TV et. al. can only be described as tepid at best. The figurative description as the peanut brittle recovery by Jim Sinclair is most apropos.
Real (CPI-adjusted) Core Business Spending:
Gold Adjusted Core Business Spending:
Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO3vrsnMw7hQ
0 comments:
Post a Comment