from Zoltan Zigedy’s blog
In June of 2015, Zoltan Zigedy wrote:
Broadly speaking, the three key factors of fixed business investment, productivity and, corporate profits have been trending downward for three to four years. First-quarter 2015 fixed investments fell 3.4%, not surprisingly, output per hour (productivity) fell by 3.1%, and earnings were expected to barely move. These three interdependent and fundamental indicators underscore the critical weaknesses in the US economy. Capitalism has wrung as much sweat as it can from workers, managers are reluctant to invest in new or advanced means of production, and US corporations are experiencing a decline in the rate of profit.
Since then, the “three key factors” gauging the health of the US economy have only worsened: Capital expenditure in the third quarter fell by 3.8%, productivity on an annualized basis was only up .4% for the third quarter, and profits suffered the largest (annualized through the third quarter) decline since the 2008 downturn… TO CONTINUE READING, PLEASE GO TO: http://zzs-blg.blogspot.com/2016/01/tottering-on-another-brink.html