"Coming together is a beginning, keeping together is progress, working together is success." - Henry Ford
The current U.S. GDP is growing at a declining rate when measured by post-recession nominal GDP statistics. This is alarming as the U.S. currently employs the lowest historical interest rates in a time of relative domestic tranquility.
With a deep understanding of political economics, coupled with the low cost of communication, a high level of domestic education, enormous technological advances and a healthy domestic workforce, the United States is capable of employing a multi-tiered economic solution that would entail a short-term nominal GDP growth rate of 5%.
The U.S. GDP Defined
GDP, which is short for gross domestic product, is the measure of economic output that occurs in a given time period within a specific country. In the United States, the government measures GDP in both real and nominal terms.
Real GDP is
Today's revision to Q3/13 GDP gives us our first look at corporate profits for the quarter, and they just keep on growing. Nominal after-tax profits are at a new all-time high and have risen almost 9% in the past year. This is very impressive no matter how you look at it.
(click to enlarge)
The two charts above show after-tax corporate profits and nominal GDP; the first chart takes the long view, while the second chart zooms in on the past quarter century. The y-axes of both graphs have similar ranges, so it should be apparent that corporate profits have risen at a much faster pace than nominal GDP both in the current recovery and over the past two decades.
The chart above shows after-tax corporate profits as a percent of nominal GDP. Profits are very close to an all-time high on this basis,
By Ryan Puplava
Perhaps my favorite tool for measuring strength is breadth, which simply measures the percentage of constituents advancing or declining within a group or index. You can apply it to any financial market or economic series to gauge how robust an advance is. During a bull market or economic expansion you would expect breadth to be very strong where the bulk of stocks are rallying and the bulk of the country is showing economic growth. During a recession you would expect the opposite: the bulk of stocks are in their own private bear markets and various segments of the economy are contracting. Not only does breadth reveal whether you have a bearish or bullish backdrop but it can also help in spotting turning points for when the stock market is transitioning from a bull to a bear market or when the economy is slipping from expansion to contraction