SurplusProductivitycom

presents

>

Danza Negra

Cuarteto De Clarinetes De Caracas

Cuarteto De Clarinetes De Caracas

Suelos

2007-12-11T080000Z

2007 Cacao Musica

>

The US EconomyCharting the Evolution

Data Source The Bureau of Economic Analysis

Charts by Paul Winghart

Text by Paul Winghart

SurplusProductivitycom your premier source for original economic content

Music Danza Negra Ernesto Lecuona Cuarteto de Clarinetes de Caracas

>

Gross Domestic ProductThe summation of market or monetary values of all the goods and services produced domestically over a given period

In 2013 the US economy totaled over $165 trillion in officially recognized production1

1Subject to future revisions by the US Bureau of Economic Analysis

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

>

Real GDP

It is important to account for how much growth is actual production and how much growth is from rising prices

Adjusted for inflation GDP has averaged growth of 292 percent per year since 19822

2 Based on 2009 chained prices

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

The US EconomyCharting the Evolution

Data Source The Bureau of Economic Analysis

Charts by Paul Winghart

Text by Paul Winghart

SurplusProductivitycom your premier source for original economic content

Music Danza Negra Ernesto Lecuona Cuarteto de Clarinetes de Caracas

>

Gross Domestic ProductThe summation of market or monetary values of all the goods and services produced domestically over a given period

In 2013 the US economy totaled over $165 trillion in officially recognized production1

1Subject to future revisions by the US Bureau of Economic Analysis

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

>

Real GDP

It is important to account for how much growth is actual production and how much growth is from rising prices

Adjusted for inflation GDP has averaged growth of 292 percent per year since 19822

2 Based on 2009 chained prices

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Gross Domestic ProductThe summation of market or monetary values of all the goods and services produced domestically over a given period

In 2013 the US economy totaled over $165 trillion in officially recognized production1

1Subject to future revisions by the US Bureau of Economic Analysis

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

>

Real GDP

It is important to account for how much growth is actual production and how much growth is from rising prices

Adjusted for inflation GDP has averaged growth of 292 percent per year since 19822

2 Based on 2009 chained prices

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

>

Real GDP

It is important to account for how much growth is actual production and how much growth is from rising prices

Adjusted for inflation GDP has averaged growth of 292 percent per year since 19822

2 Based on 2009 chained prices

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Real GDP

It is important to account for how much growth is actual production and how much growth is from rising prices

Adjusted for inflation GDP has averaged growth of 292 percent per year since 19822

2 Based on 2009 chained prices

>

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

The US Economy

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

$000

$200000

$400000

$600000

$800000

$1000000

$1200000

$1400000

$1600000

$1800000

Annual Gross Domestic Product

In U

SD ($

) Bil

lion

s

In 1982 US GDP totaled $3342 Trillion

By 2013GDP was up to 16797 Trillion

Average Annual Pace536 percent (w inflation)

292 percent (wo inflation)

>

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Components of GDP

GDP is a function of

(Personal) Consumption +

(Gross) Investment +

Government +

Net Exports3

3 This number is typically negative since the US imports much more than it exports

>

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Components of GDP

While the components that make up GDP donrsquot change the weightings do

It depends upon what area of the economy produces the most activity

>

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Components of GDP

For example this is how the economy broke-down in 1982

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Components of lsquo82 GDPGDP is a function of

(Personal) Consumption + $2403 T 62

(Gross) Investment + $0551 T 17

Government + $0412 T 22

Net Exports -$0020 T -1 $3345 T

>

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo82 GDP = $3345 Trillion

62001737

-060

2123

1982

Consumption

Investment

Trade

Government

>

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo83 GDP = $3631 Trillion

62851752

-142

2105

1983

Consumption

Investment

Trade

Government

>

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo84 GDP = $4040 Trillion

6183

2030

-254

2042

1984

Consumption

Investment

Trade

Government

>

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo85 GDP = $4346 Trillion

6264

1909

-262

2090

1985

Consumption

Investment

Trade

Government

>

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo86 GDP = $4590 Trillion

6314

1850

-287

2123

1986

Consumption

Investment

Trade

Government

>

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo87 GDP = $4870 Trillion

63491832

-297

2117

1987

Consumption

Investment

Trade

Government

>

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo88 GDP = $5252 Trillion

63721784

-208

2053

1988

Consumption

Investment

Trade

Government

>

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo89 GDP = $5657 Trillion

63501767

-153

2036

1989

Consumption

Investment

Trade

Government

>

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo90 GDP = $5979 Trillion

63981661

-130

2071

1990

Consumption

Investment

Trade

Government

>

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

From 1982 to 1990 the percentages didnrsquot alter in a significant way

However as trade increased the percentage of activity due to consumption was able to grow

>

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo91 GDP = $6174 Trillion

6414

1529

-046

2103

1991

Consumption

Investment

Trade

Government

>

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo92 GDP = $6539 Trillion

6447

1549

-053

2057

1992

Consumption

Investment

Trade

Government

>

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo93 GDP = $6878 Trillion

6500

1609

-095

1986

1993

Consumption

Investment

Trade

Government

>

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo94 GDP = $7308 Trillion

6487

1719

-127

1921

1994

Consumption

Investment

Trade

Government

>

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo95 GDP = $7664 Trillion

6503

1719

-117

1895

1995

Consumption

Investment

Trade

Government

>

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo96 GDP = $8100 Trillion

6504

1768

-119

1847

1996

Consumption

Investment

Trade

Government

>

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo97 GDP = $8608 Trillion

6460

1854

-118

1805

1997

Consumption

Investment

Trade

Government

>

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo98 GDP = $9089 Trillion

6495

1909

-179

1775

1998

Consumption

Investment

Trade

Government

>

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo99 GDP = $9665 Trillion

6535

1949

-270

1786

1999

Consumption

Investment

Trade

Government

>

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo00 GDP = $10289 Trillion

66101977

-369

1783

2000

Consumption

Investment

Trade

Government

>

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

By the year 2000 consumption accounted for over 660 percent of all domestic economic activity

This was the first time in modern economic history that one GDP component made up 23rds of the economy

>

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo01 GDP = $10625 Trillion

6689

1815

-347

1844

2001

Consumption

Investment

Trade

Government

>

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo02 GDP = $10980 Trillion

6726

1753

-387

1908

2002

Consumption

Investment

Trade

Government

>

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo03 GDP = $11512 Trillion

67441762

-435

1929

2003

Consumption

Investment

Trade

Government

>

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo04 GDP = $12277 Trillion

67261854

-501

1920

2004

Consumption

Investment

Trade

Government

>

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo05 GDP = $13095 Trillion

67131930

-547

1904

2005

Consumption

Investment

Trade

Government

>

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo06 GDP = $13857 Trillion

67091934

-550

1907

2006

Consumption

Investment

Trade

Government

>

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo07 GDP = $14480 Trillion

67291826

-490

1935

2007

Consumption

Investment

Trade

Government

>

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo08 GDP = $14720 Trillion

67971647

-485

2040

2008

Consumption

Investment

Trade

Government

>

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo09 GDP = $14417 Trillion

6827

1303

-272

2143

2009

Consumption

Investment

Trade

Government

>

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo10 GDP = $14958 Trillion

6820

1404

-347

2122

2010

Consumption

Investment

Trade

Government

>

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo11 GDP = $15533 Trillion

6896

1437

-366

2033

2011

Consumption

Investment

Trade

Government

>

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo12 GDP = $16244 Trillion

6864

1524

-337

1950

2012

Consumption

Investment

Trade

Government

>

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

lsquo13 GDP = $16797 Trillion

6844

1592

-296

1860

2013

Consumption

Investment

Trade

Government

>

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Even the economic procession4 of 2008 could not derail the growth of the consumption sector

In fact the procession4 only served to amplified the decadesrsquo long trend4 A procession is an economic force whereas surplus productivity drives the economyrsquos potential too far beyond realized GDP growth

>

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

ConsumptionPersonal consumption is made up of different products that are categorized as either

Service

Durable Goods

Nondurable Goods

>

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

ConsumptionWhile service consumption has always accounted for a large portion of total expenditures it has grown right along with the economy

As a result it is more than fair to say that the US economy is much more service-dominated today than ever before

>

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

>

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo83

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo84

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo85

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo86

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo87

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo88

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo89

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo90

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo91

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo92

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo93

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo94

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo95

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo96

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo97

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo98

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo99

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo00

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo01

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo02

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo03

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo04

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo05

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo06

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo07

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo08

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo09

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo10

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo11

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo12

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

>

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Consumption lsquo82 ndash rsquo13

Service NonDurable Goods Durable Goods000

1000

2000

3000

4000

5000

6000

7000

8000

5664

3116

1220

6619

2282

1098

>

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service EconomyServices are much different products than goods especially in the behavior of their prices

It is service price growth therefore that now dominates trends in inflation

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

>

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service Prices (Annual)

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

000

100

200

300

400

500

600

700

623

195

>

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

Service PricesService prices have fallen on average of 020 percent per year since 1982

Trends in service prices while less volatile are harder to dislodge than the trends in the prices of goods

>

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

In ConclusionThe size of the economy has more than quintupled on a dollar-volume basis

Much of that growth is due to an expanding consumption sector

Consumption has increased by way of service expenditures

Service prices have been under pressure consistently as the sector has expanded

>

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

SurplusProductivitycom

thanks you for viewing

Watch for more slide shows soon

>

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure

DisclosureThe material contained herein is not a product of any research department Nothing herein constitutes a recommendation of any security or regarding any issuer nor is it intended to provide information sufficient to make an investment decision The information contained in this communication has been compiled by surplusproductivity from sources believed to be reliable but no representation or warranty express or implied is made by surplusproductivity its affiliates or any other person as to its accuracy completeness or correctness All opinions and estimates contained in this communication constitute surplusproductivity judgment as of the date of this communication are subject to change without notice and are provided in good faith but without legal responsibility Nothing in this communication constitutes legal accounting or tax advice or individually tailored investment advice This material is prepared for general circulation to clients and may have been prepared without regard to the individual financial circumstances and objectives of persons who receive it The investments or services contained in this communication may not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services Past performance is not a guide to future performance future returns are not guaranteed and a loss of original capital may occur Every state in the US and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents as well as the process for doing so As a result any specific securities discussed in this communication may not be eligible for sale in some jurisdictions This communication is not and under no circumstances should be construed as a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction to the fullest extent permitted by law neither surplusproductivity nor any of its affiliates nor any other person accepts any liability whatsoever for any direct or consequential loss arising from any use of this communication or the information contained herein No matter contained in this document may be reproduced or copied by any means without the prior consent of surplusproductivity may buy from or sell to customers on a principal basis in the securities or related derivatives that are the subject of this communication Additional information is available upon request

>

• Slide 1
• The US Economy
• Gross Domestic Product
• The US Economy
• Real GDP
• The US Economy (2)
• Components of GDP
• Components of GDP (2)
• Components of GDP (3)
• lsquo82 GDP = $3345 Trillion
• Components of lsquo82 GDP
• lsquo82 GDP = $3345 Trillion (2)
• lsquo83 GDP = $3631 Trillion
• lsquo84 GDP = $4040 Trillion
• lsquo85 GDP = $4346 Trillion
• lsquo86 GDP = $4590 Trillion
• lsquo87 GDP = $4870 Trillion
• lsquo88 GDP = $5252 Trillion
• lsquo89 GDP = $5657 Trillion
• lsquo90 GDP = $5979 Trillion
• Slide 21
• lsquo91 GDP = $6174 Trillion
• lsquo92 GDP = $6539 Trillion
• lsquo93 GDP = $6878 Trillion
• lsquo94 GDP = $7308 Trillion
• lsquo95 GDP = $7664 Trillion
• lsquo96 GDP = $8100 Trillion
• lsquo97 GDP = $8608 Trillion
• lsquo98 GDP = $9089 Trillion
• lsquo99 GDP = $9665 Trillion
• lsquo00 GDP = $10289 Trillion
• Slide 32
• lsquo01 GDP = $10625 Trillion
• lsquo02 GDP = $10980 Trillion
• lsquo03 GDP = $11512 Trillion
• lsquo04 GDP = $12277 Trillion
• lsquo05 GDP = $13095 Trillion
• lsquo06 GDP = $13857 Trillion
• lsquo07 GDP = $14480 Trillion
• lsquo08 GDP = $14720 Trillion
• lsquo09 GDP = $14417 Trillion
• lsquo10 GDP = $14958 Trillion
• lsquo11 GDP = $15533 Trillion
• lsquo12 GDP = $16244 Trillion
• lsquo13 GDP = $16797 Trillion
• Slide 46
• Consumption
• Consumption (2)
• Consumption lsquo82 ndash rsquo
• Consumption lsquo82 ndash rsquo83
• Consumption lsquo82 ndash rsquo84
• Consumption lsquo82 ndash rsquo85
• Consumption lsquo82 ndash rsquo86
• Consumption lsquo82 ndash rsquo87
• Consumption lsquo82 ndash rsquo88
• Consumption lsquo82 ndash rsquo89
• Consumption lsquo82 ndash rsquo90
• Consumption lsquo82 ndash rsquo91
• Consumption lsquo82 ndash rsquo92
• Consumption lsquo82 ndash rsquo93
• Consumption lsquo82 ndash rsquo94
• Consumption lsquo82 ndash rsquo95
• Consumption lsquo82 ndash rsquo96
• Consumption lsquo82 ndash rsquo97
• Consumption lsquo82 ndash rsquo98
• Consumption lsquo82 ndash rsquo99
• Consumption lsquo82 ndash rsquo00
• Consumption lsquo82 ndash rsquo01
• Consumption lsquo82 ndash rsquo02
• Consumption lsquo82 ndash rsquo03
• Consumption lsquo82 ndash rsquo04
• Consumption lsquo82 ndash rsquo05
• Consumption lsquo82 ndash rsquo06
• Consumption lsquo82 ndash rsquo07
• Consumption lsquo82 ndash rsquo08
• Consumption lsquo82 ndash rsquo09
• Consumption lsquo82 ndash rsquo10
• Consumption lsquo82 ndash rsquo11
• Consumption lsquo82 ndash rsquo12
• Consumption lsquo82 ndash rsquo13
• Service Economy
• Service Prices (Annual)
• Service Prices (Annual) (2)
• Service Prices (Annual) (3)
• Service Prices (Annual) (4)
• Service Prices (Annual) (5)
• Service Prices (Annual) (6)
• Service Prices (Annual) (7)
• Service Prices (Annual) (8)
• Service Prices (Annual) (9)
• Service Prices (Annual) (10)
• Service Prices (Annual) (11)
• Service Prices (Annual) (12)
• Service Prices (Annual) (13)
• Service Prices (Annual) (14)
• Service Prices (Annual) (15)
• Service Prices (Annual) (16)
• Service Prices (Annual) (17)
• Service Prices (Annual) (18)
• Service Prices (Annual) (19)
• Service Prices (Annual) (20)
• Service Prices (Annual) (21)
• Service Prices (Annual) (22)
• Service Prices (Annual) (23)
• Service Prices (Annual) (24)
• Service Prices (Annual) (25)
• Service Prices (Annual) (26)
• Service Prices (Annual) (27)
• Service Prices (Annual) (28)
• Service Prices (Annual) (29)
• Service Prices (Annual) (30)
• Service Prices (Annual) (31)
• Service Prices (Annual) (32)
• Service Prices (Annual) (33)
• Service Prices
• In Conclusion
• Slide 117
• Disclosure