In economic terms, the United States has experienced a massive surge in capital formation since the 1980s. Most important, the qualitative nature of this capital is dramatically different than before.
Capital increases worker productivity.
But not all capital increases worker productivity at the same rate. It is more and more obvious that we have not only seen a quantitative increase in capital formation, but a qualitative shift in capital s productivity. This is why the expansion, almost a generation old when viewed in terms of productivity figures, interest rates, inflation or other traditional measures, continues to appear to be relatively young and vigorous. Stratfor has been extremely bullish on the American economy since 1995. To our amazement, we continue to be bullish.