USA: It's a super manufacturing cycle

It’s easy to get so distracted by short-term, even daily, economic data that we lose sight of a long-term trend that we can’t see even though it’s right in front of our eyes.

I’m calling themSilent signalsThere and indicative of the trends of the moment, they are powerful, but not obvious. You’ll never hear about them on TV, though they pale in with our PRRN. Social media can hardly handle it. Only a well-informed person would think about it. Only person …

I can say that the first evaluation data happened to me by chance. Then I started looking for more and more… I found more and more.

We believe the United States is in the early stages of a superindustrialization cycle“. I read this consideration in a report by Joseph Quinlan, Chief Market Strategy Officer for Merrill and Bank of America Private Bank, which was covered by Axios. This is amazing Quinlan considerations Reported by Neil Irwin:

Massive new investment is pouring into American heavy industry, shaping the economic landscape for years to come. If the 2000s were a period of chronic underinvestment, now billions of dollars are pouring into massive, expensive megaprojects to manufacture batteries, solar cells, semiconductors, and more.

This boom is fueled by the hundreds of billions of dollars appropriated by the Biden administration.

Represents the Inflation Reduction Act, the Infrastructure Act, the CHIPS Act, and science financing plans for hundreds of billions of dollars. Added to all this pent-up demand in recent times. The upward pressure is also supported by the demand for workers and raw materials for years to come.

We try to briefly explain the numbers and interventions Three government plans which we just wrote about.

Inflation Reduction Act – The US administration launched the investment package in August 2022. It provides for investments in sectors related to new technologies and renewable energy production, worth about $750 billion. The ultimate goal of this clause, which entered into force at the beginning of 2023, is to reduce inflation and deficit levels in the United States, to strengthen energy security and the economy in the country, as well as to allow the goals set by Paris to be achieved. Pollutant emission reduction agreements.
Infrastructure law The program allocates $47 billion to combat climate change and ensure the country is prepared for storms, floods, wildfires, hurricanes and other extreme weather events expected in the foreseeable future. In addition, another 65 billion will be invested to renew electrical systems and facilitate the transition to renewable sources. To find a middle ground and secure the votes needed to pass the program at the end of October, the Biden administration passed a new version of the Build Back Better Act that effectively cuts its scope in half, from the initial $3,500 billion to $1,750 billion. However, these include $555 billion being invested in measures to curb climate change and reduce the amount of carbon dioxide in the atmosphere. The White House called the project “the largest effort to combat the climate crisis in US history.”
Chip and Science Law – This is a law according to which the United States will invest approximately $ 250 billion over 5 years in semiconductors, scientific research and development, with the aim of solving the supply chain problem. This represents the largest five-year investment used with public funds in the country’s history.

Visuals Axios

What could all this translate into?

the Recessions should be less likely moderation if it occurs.
in Increased demand for capitalwhich is expected to keep interest rates higher, rather than returning to very low levels before 2022.
In the Creating high paying jobswhich could put strong upward pressure on wages (but could also lead to inflation).
In the Changing geography of growth in the United StatesMost of the investment is done in the suburbs and rural areas, not in the coastal megacities which were the winners in the 2010 economy.

world in On the eve of one of the most significant shootings in its history.

It’s just a matter of determining when…