Tags: Fink | manufacturing | boom | US

BlackRock’s Fink: Cheap Natural Gas Could Result in US Manufacturing Boom

By    |   Monday, 29 Oct 2012 11:00 AM

BlackRock CEO Larry Fink predicts a U.S. manufacturing boom.

The rise of the Chinese consumer and plenty of cheap natural gas will spark that manufacturing boom, Fink says, according to Fortune.

"I was just with a CEO of a large company who said he was closing a plant in Germany and opening one up in America," Fink said at The Economist's annual Buttonwood conference, according to Fortune. "Cheap natural gas is going to spur a manufacturing renaissance in the U.S."

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

Plus, Chinese consumer consumption is increasing, which will prevent a downturn in that country, he said, Fortune reported.

In addition, U.S. banks are in "great shape," Fink said. Banks are making more loans, credit is easing and housing is turning around.

The approaching fiscal cliff is the biggest worry, he noted, although he believes a deal will be reached this year.

"If I didn't have to worry about the fiscal cliff and our debt, I would be a raging bull."

Because of cheaper natural gas, making products such as chemicals, fertilizer, aluminum, steel and glass are more profitable, according to The Wall Street Journal.

"The U.S. is now going to be the low-cost industrialized country for energy," energy economist Philip Verleger told The Journal. "This creates a base for stronger economic growth in the United States than the rest of the industrialized world."

Economists at Citigroup estimate that U.S. oil and gas production will create as many as 3.6 million new jobs by 2020 and increase economic output by 2 to 3.3 percent, according to The Journal.

Unlike oil, natural gas cannot be easily transported overseas; therefore, increased production and lower prices will benefit domestic users, The Journal explained. German and French companies pay almost three times as much for gas, and Japanese companies pay even more.

Although some producers are considering ways to ship gas overseas, they face high costs for projects and political opposition.

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
BlackRock CEO Larry Fink predicts a U.S. manufacturing boom. The rise of the Chinese consumer and plenty of cheap natural gas will spark that manufacturing boom, Fink says, according to Fortune.
Fink,manufacturing,boom,US
342
2012-00-29
Monday, 29 Oct 2012 11:00 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved