Monthly Archives: March 2011

Pricing The Risks In Japan

The key to analysing Japan is to separate out change in Wealth from change in Output. It is not necessarily the case that output will fall after a natural disaster.  In fact, in a well ordered and productive society, the opposite … Continue reading

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The Structural Nature of Capacity Underutilisation and Unemployment

Backlogs vs Capacity Utilisation As discussed in the previous article, Capacity Utilisation responds to Order Backlogs.  The nature of backlogs are a reflection of deficits in manufacturing capacity.  After the investment to reconfigure manufacturing is made, capacity increases to eat … Continue reading

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Survey Says: Manufacturing Is Hot, And Payrolls Still Understated

Can a recovery be any more obvious?  The frequently leading ISM PMI Composite is at its highest level in more than two decades.  New orders are expanding at the fastest rate of the recovery.  Production trails closely behind.  Backlogs are … Continue reading

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Personal Income Is At A Record, And Americans Are Returning To Work

You may never know it from listening to the news, but Personal Income in the United States has once again powered to new all-time highs – $12,897.3 billion. But that’s in nominal terms, you say.  It, in fact, is just … Continue reading

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