The picture over to the right is finally revealing what we were mumbling months ago when (in a trance) I wrote about how at some point the last possible person would have bought their sixth automobile. When this happened, I was expecting there would be no more parking places and we’d enter the jaws of economic collapse.
We’re getting closer…..closer….closer. And people like us are to blame. We look at core retail (retail sales less autos) the same way the Fed looks at inflation (reported inflation less food and energy). Their way is delusional, mine is not. (What’d you expect me to say?)
We’ve been half-expecting retail sales to slide down the slopes into oblivion for quite a while now. For a couple of good reasons all of which is because of bass, four-string, electric guitars. Lemme ‘splain you, Lucy:
- Look around your house and ask yourself (language alert!) “Do I have enough shit?” We did this the other day and decided that the one last toy we didn’t have was a four-string bass guitar to dink around with in our home studio.
- The second MPQ (major pertinent question) is “Can I buy used instead of buying something new?” In our case, the same exact $200+ new cheapo electric bass we could buy from any of 10-20 online instrument discounters new at retail, was available used from a Guitar Center up in Minnesonsin somewhere for $99.95 – so we opted for the the used one. How many people go on to out-Jump Van Halen at age 66? Zero, but why not try?
- The third MPQ is whether we need something at all. The answer in all honesty, is “Prolly not…” But if it’s a WTF moment and if you don’t owe anyone one anything, why not toughen up the left fingertips so someone will have something nice to say about you when your funeral shows up – even if it’s as little as “Shit, dude, what a riff the old man developed recently…”
Daughter Denise (the real musician in the family) was appalled. “Dad, the CEO of Guitar Center probably rides around in a jet and why don’t you get something that’s a real instrument so you can get some quality sound out of it? Like my old Gibson…or my boyfriends [something or other]?”
The simple answer is I don’t play guitar OR bass. But we don’t have time to read, either, but that doesn’t stop us from owning close to a thousand books…because that’s the AMERICAN thing to do…spend, spend, spend and keep this pony running…
But that’s what makes this a perfect metaphor for America and where we are as a country, don’t you see? Serious consumer super-saturation. In other words, few of us have enough time to use all our existing (language alert!) shit even once a week, let alone, often enough to have it actually make sense to own it, let alone BUY it.
That, and the Feral Reserves report last Friday on Consumer Debt says credit card use is up at an annualized rate of only 4.8% (a tad more than inflation, but likely more people are buying food on credit cards…) while non-revolving (student loans and mobile homes and such) had actually gone negative.
It logically follows that with the Baltic Dry Cargo Index stuck in park (its down to 2009 levels) there should be some signs of spending falling apart. I mean besides the inventory numbers lately taking off to the upside.
So that’s reality at the street.
Now, with your ViseGrips at the ready, hand me the envelope and let’s see what the latest is from the US Department of Delusions, shall we? Ooops…make that Census Bureau/commerce, but same diff:
“The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for February, adjusted for seasonal variation
and holiday and trading-day differences, but not for price changes, were $437.0 billion, a decrease of 0.6 percent (±0.5%) from the previous month, but up 1.7 percent (±0.9%) above February 2014.