US Productivity

• Productivity of the US worker surged 6.9% in Q4 2009, largest one year gain since 2002.
• Size of the workforce is no larger today than in September 1999, yet the economy is 20% larger.

A Mixed Up World

• PIMCO:  “You can’t get out of a debt crisis by creating more debt.”
• Greece: Prime Minister Papandreou stated: “Each day we discover new holes, new landmines, in the budget deficit.”
• Bank of England is considering a continuation or expansion of quantitative easing as their economy is shaky enough to mandate further stimulus.
• Roughly 25% of U.S. corporate revenues are generated from Europe.
• US Banks today hold more cash than commercial and industrial loans, first time on record.
• California and Illinois are functioning with a whole new currency – IOU’s. - The 50 states, collectively, are facing a deficit of over $150 billion.
• Oil-rich countries are demanding a bigger cut of profits and the terms are expected to get more difficult over time. -
Brazil is considering an effective tax rate of greater than 80% for foreign oil companies and also would require partnership with Petrobras.

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