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From Cats to Clips, Woes Continue

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Caterpillar Inc., struggling with weak demand for equipment used in mining and oil drilling, sharply cut its forecast for full-year earnings and reaffirmed its sales would fall in 2016 for a fourth consecutive year. WSJ.COM

US factories scaled back production as the strengthening US dollar and weakening economies elsewhere continue to suppress demand for American goods and services.

Why isn’t growth accelerating? The simple answer is that falling oil prices, low interest rates and monetary accommodation are not random windfalls, but are instead responses to an excess of global supply relative to global aggregate demand.