Once again, America has experienced its bacon being pulled out of the fire by what? Car sales!
But things aren’t doing badly for the credit card companies, either, since in the latest Federal Reserve data out this week, credit card (revolving) debt was up at an annual rate of 7.4 percent while student loans and such were up by more than 10%.
Understand that this is a vexing problem for economists to deal with: While it can be argued that the big bump in consumer spending could be a good thing, it also might imply that people are no more responsible in their spending habits than they were in the years leading up to the Housing Bust a few years back.,
Yes, it might mean there are sales…but is it a healthy economy? I rather think not.
Before going further, though, let’s cut into the retail sales press release just out…
The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for August, adjusted for seasonal
variation and holiday and trading-day differences, but not for price changes, were $444.4 billion, an increase of 0.6 percent (±0.5%) from the
previous month, and 5.0 percent (±0.9%) above August 2013. Total sales for the June through August 2014 period were up 4.5 percent
(±0.7%) from the same period a year ago. The June to July 2014 percent change was revised from virtually unchanged (±0.5%)* to 0.3 percent
Retail trade sales were up 0.6 percent (±0.5%) from July 2014, and 4.8 percent (±0.7%) above last year. Auto and other motor vehicle dealers
were up 9.5 percent (±3.0%) from August 2013 and health and personal care stores were up 8.1 percent (±1.9%) from last year.
The markets are taking this in stride…while my “Goodbye 17,000” call may have turned out a bit early when we met up yesterday,, the market just might come around to my way of thinking before the close this afternoon.
One one besides Ures truly will have to notice that except for auto sales, the economy is still dead or dying.
The Dow is set to open down 100 – apparently I was a day early on my Goodbye headline Thursday – but better a day early than a minute late, right?
Britain desperately needs a distraction before this time next week. A NY Times Deal book piece raises a horrific possibility (if, that is, you’re a royal): a vote by Scotland to pull out and become a free (of English rule) country could pave the way for a break-up of the rest of Empire.
Since “empire” includes much of the world’s secret banking (Cayman and Turks, I’m thinking) it would be a real hit to corporate globalism, which has a kind of hand-shake deal with royals and governments.
And my, oh my, wouldn’t that be something: Absent secret accounts and ways to weasel on taxes fairly owed, why….Nope! Can’t have it. Call in the squad from Dial-a-Distraction, would you, please, thank-you ever so much?
Maybe we could blame a massive national power outage on something like the X-flare non-event this week, or something. Even better odds? “Domestic terrorism” in the UK.
Don’t mean to be a pessimist, but fair elections are dangerous to the Olde Way.
More after this…
Amnesty Heats Up
As I’ve mentioned before, it’s miles from transparency when the incumbent party in control of the Senate goes along with the White House decision to delay unveiling their amnesty plans until after the election – so that America will be stuck with no legislative redress at the voting booth for at least two years.
I hold that an honest and forthright leader would lay out their cards ahead of elections, not after. Seems evident instead that crass politics is the Changer in Chief’s way, just like it was the operating style of previous Master’s of the Universe proxies put in office by corporate checkbooks to hold their stranglehold on power.
The old boss is the new boss…yada, yada…
By the way, speaking of Masters of the Universe, I hope you noticed to what extent the federal government went to “have its way” with your personal data sent over the internet?
Go read up on how Yahoo was threatened with a fine of $250,000 a DAY if they didn’t comply with federal badgering to provide the snoop troops with what they wanted.
Economic Stimulus Plans: Ukraine or ISIS?
We’ve held that in order to stimulate the economy, plus keep more young people “employed” that America needs another war or two. And we seem to continue drifting in that direction this week.
Take, for example, reports that there will need to be more “boots on the ground” in Iraq and environs in order to hold ISIS in check. An ISIS with forces as high as 31,500 now.
It’s all terribly confusing, too…even to SecState John Kerry who refused yesterday to call it a “war” with ISIS…the problem? If it’s a “war” then congress has a say. If you can swallow weasel words like “police action” of whatever they come up with, the opinion of congress won’t matter.
In Ukraine Meantime:
Let’s see: Russia has 1,000 troops reported in eastern Ukraine and there are more sanctions coming.
Where all this hits the fan may be this fall-into-winter as Russia plays it’s natural gas card..
Russia has turned off natural gas supplies to Ukraine (didn’t pay their gas bills) and now Poland is doing a kind of ‘reverse feed” into Ukraine, but you know that’s going be costing someone a bundle.
At what point is war cheaper than peace? We may see an answer to that one arriving this fall/winter.
OK, off to work on Peoplenomics research for tomorrow…see you Monday with more free-thinking here – bring your friends.