Wednesday, January 26, 2011
Memo from the real economy...
First of all, I am happy to have returned with a really neat supplier award and even more happy to have interacted with several executives of a large US based, multi-national manufacturing corporation, Parker Hannifin. Unlike many large corporations, this one gets it, where productivity and global focus are concerned. I am very impressed.
My company, of which I have to admit I am a virtual part-time employee, deals only with a tiny segment of Parker, in medical equipment and instrumentation. But talking with a supply chain management exec out of Cleveland, it appears the entire company - much of it industrial related - is ramping.
The focus of the event today was one of thanks and positive tone toward suppliers. Quite the opposite of the one I endured during a deflationary period in 2002, when I felt lucky to get out alive. The focus is on quality, automation, productivity and BETTER IDEAS, all of which I can relate to. It is also not the presentation of a company expecting economic downturn.
It still says here that the broad markets need a significant correction, but as NFTRH has been stating lately, it is best to reserve judgment on its nature until such time as it actually gets here. Greenspan's funny policy did after all extend an inflation and hope fueled bull market for nearly 5 years. Much more detail involved, but you get the picture. We review velocity of money and other factors and we see that the economy is ramping to the inflators' will. Moral hazards are high, but outside of normal correction, one wonders how long it may take for them to be expressed this time. http://www.biiwii.blogspot.com
Edit (2:52) Adding monthly chart of PH. I am no momentum guy, but does this look bearish to you as an indicator of the global economy? Separately, there was much talk of China, India and the emerging world. It is real.