Manufacturing Outlook
This entry was posted on 7/23/2008 10:09 AM and is filed under uncategorized.
In fact for US manufacturing the environment could not be better. Thanks to the rapid decline of interest rates orchestrated by the US Federal Reserve, the America dollar has tanked, making Americas exports available at bargain basement prices. For example, Caterpillar just recorded record profits. The problem is that inflation is growing throughout the world. Two thirds of the world will have double digit inflation by the end of the summer. Inflation is already out of control in the US, so Yo-Yo Ben Bernanke will have to rapidly raise interest rates. This will strengthen the dollar, which along with the global turndown, will negatively affect manufacturing.
