Druckenmiller on CNBC

[HJ]

Dialing it all back, productivity (the way US economists measure it) in the developed world may not have kept up, productivity worldwide has absolutely improved.  Think about the integration of China into world trade, the productivity of 1.5 billion people has increased by leaps and bounds, and, to the extent the world figured out how to accommodate their incremental commodity needs reasonably well (which so far it has, agricultural commodity is back at lows, oil may rise again, but for now at $50-$60 is reflection of human ingenuity compared with $30 in the early 80's), the defining event of our time is absolutely deflationary.  Yeah, advancement in communication system and internet figures towards that.  The spread of productive knowledge, the substitution of the need to do fact to face meetings ..., ...

 

 

 

[Spekulatius]

2.) current phase of innovation (greatest in over a century) is likely what is resulting in low inflation and this is not a bad thing.

 

This one comment really made me think? Are we really in a great phase of innovation? Hard to tell while we are in the middle of it.....

Smartphones are probably more a drag on productivity  than a benefit. Imagine the time people spent on nonproductive uses during work hours on their smartphone. The gains being accessible and look up information on the spot pale in comparison, IMO.

 

We certainly are.  Things like wide adoption of wireless communication, carrying a powerful computer anywhere you go, google translate is incredibly good, available to everybody on demand for free, advances in genetic engineering, even horizontal drilling and fracking, all happening more or less at the same time, iPhone is only 10 years old!  Nothing short of miraculous.