Rebutting the Recovery: Opinion
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Bullion Bulls Canada) -- The U.S. recovery is like one of the Simpsons episodes featuring mythical daredevil Captain Lance Murdock. After performing one of his heroic stunts, and inevitably ending up with his shattered body in a crumpled heap, he shakily raises one hand to give the "thumbs up" sign, and then we hear in the background the announcer proclaim, "He's all right!"
Observe the following crashes, and the "recoveries"(?) that followed:
However, even clever Simpsons humor ceases to be funny if one is forced to watch/listen to the same joke, day after day, for nearly three years. The U.S. mainstream media is not nearly as clever/funny as the Simpsons. Case in point, observe Bloomberg's latest version
Service producers are taking over from manufacturing as the driver of the almost three-year-old U.S. economic expansion. The end of the recession in June 2009 triggered the biggest surge in production in a decade, propelled by rising demand from overseas and the need to replenish inventories and upgrade equipment. That is now giving way to increasing sales at places like restaurants, transportation companies and temporary-help agencies, leading to gains in employment that have bolstered the world's largest economy.Let's dissect the first part of the joke first: "services" are taking over from "manufacturing" as the supposed drivers of this mythical economic recovery. To begin with, it's absurd to suggest there has been any growth at all in U.S. manufacturing. Manufacturing is the most energy-intensive part of an economy, but the U.S. economy is using less and less energy, and even less electricity than it used prior to the Crash of '08.
As recently as April 2007, CNN was reporting that a "refining crunch"
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