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Call it rebound from the horrible hurricanes in Texas, Florida and even Georgia. The October Industrial Production numbers are out and IP YoY climbed to 2.88%.
Capacity utilization rose to 77%, although it is still below the Fed target (not spoken of recently) of 80%. The last time was 80% Capacity Utilization was during the housing bubble.
The problem is that M2 Money Velocity (GDP/Money Stock) remains at an all-time low. Although we are seeing a stabilization in labor force participation.
The US Federal Reserve is printing currency (M2) at a rate almost twice as fast as Industrial Production growth.
Here is a photo of a young Janet Yellen contemplating print more and more money.`
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