The Next Boom - America is Back

[Jordan]

Surely you remember my last post on the booming economic recovery in the United States, which laid out the thesis for why low energy prices and low financing costs would boost the American economy. If you don't, you can find it here: America's Future Looks Bright.

This week Barron's ran a cover story with the same thesis, promising millions of jobs in the next 8 years, low energy costs, and a booming economy.

Some key notes from the cover story:

Natural gas here costs $3.55 per million British thermal units, versus roughly $12 in Europe and $16 in Japan.

Over the past six years, U.S. production of petroleum and natural gas has jumped from 15 million barrels of oil-equivalent a day to 20.1 million, a 20-year high. Over the same period, imports have fallen from 14 million barrels a day to below eight million, a 25-year low.

Given our expanding reserves and record inventory, commodity strategists expect U.S. natural gas to stay between $3 and $5 per million BTUs for years -- well below prices abroad.

Industrial land averages $10.22 a square foot across China, but rises to $11.15 in the coastal city of Ningbo and $21 in Shenzhen -- compared with $1.30 to $4.65 in Tennessee and North Carolina. "Within five years, the total cost of producing many products will be only about 10% to 15% less in Chinese coastal cities than in parts of the U.S. where factories are likely to be built,"

But BCG's Sirkin conservatively estimates that 2.5 million to five million manufacturing positions will be added by 2020, which could shave two to three percentage points from our unemployment rate, now near 7.8%.

Here's a link to get past the paywall: https://www.google.com/search?q=the+next+boom

[Michigan11]

Fuck Yeah!

[FindLiberty]

Ammo production should shoot up in America since there seems to be supply shortages!

Jobs jobs jobs, maybe 2nd and 3rd shifts?

[oyarde]

While it is true energy costs are lower here than socialist Europe , I do not see it creating jobs, higher costs , due negatively effect jobs and the price of food, but lower costs , I do not see that effect .

[oyarde]

I have my doubts, I doubt America is back , or will ever be so in the near future , I also doubt unemployment gets any better .I think what you see now , is likely full employment.

[The Goat]

Future economic headlines

The economy is back!

US economy grows by 25%

Valuve of dollar drops by 50%

[Michigan11]

Yeah it's back baby

[KingRobbStark]

Venezuela has a large oil reserve too, and as a result the energy cost is very cheap. But guess what. The people are still poor as fuck. Just because the fuel is cheap doesn't make the car any less expensive.

[-C-]

Honestly I don't know what QEing at a rate of 85 billy a month is doing to recover anything. The fed won't be able to sustain 0-1% discount window forever...so where is the cheap money going to come from? In the next 8 years when interest rates finally start creeping up, where will the cheap money be to promote this growth? Unless of course the government gets involved, which is like taboo around here.

[RickyJ]

North Dakota apparently is the only state in the union that hasn't gone through the long recession/depression that the rest of the nation is still going through. There is basically full employment there and I am seriously thinking of moving there soon.