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Retail Sales Point To Continuing "Struggle Through" Economy

Tyler Durden's picture




 

Submitted by Lance Roberts of STA Wealth Management,

 

 

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Wed, 01/08/2014 - 11:04 | 4311386 Magnix
Magnix's picture

Come on, CRASH! CRASH! CRASH!!

Wed, 01/08/2014 - 11:28 | 4311479 Sudden Debt
Sudden Debt's picture

just wait untill ecommerce numbers come out and the market jumps 500 points...

Wed, 01/08/2014 - 11:43 | 4311520 666
666's picture

"Retail sales are not currently indicating that the consumer is about to "drop kick" a game winning field goal in the coming year."

Gee, it couldn't be because the consumer will be spending all his "disposable" income on monthly ObummerCare payments, could it?

Wed, 01/08/2014 - 11:05 | 4311389 Dr. Engali
Dr. Engali's picture

Too bad the Bernank...er...Old Yeller can't print some consumers.

Wed, 01/08/2014 - 11:08 | 4311406 NoDebt
NoDebt's picture

They got all the "consumers" they need in the form of the Feral Government.  Middle class being slowly strangled?  Offset their decline with more deficit spending.

Fear not!  There will be plenty of newly-minted Treasuries for them to monetize in the future.

Wed, 01/08/2014 - 11:23 | 4311460 Bad Attitude
Bad Attitude's picture

Gun and ammunition sales will continue to grow in 2014. But, that should not be taken as an indicator of consumer confidence.
Forward (over the cliff)!

Wed, 01/08/2014 - 11:41 | 4311503 Shizzmoney
Shizzmoney's picture

The Fed is in a bind (they won't recognize).

They want inflation.  But not TOO much inflation.  But however, an inflationary reset is due because the people (and not the manipulated data) are telling us so:

Protests for a higher minimum wage.  College students, homeowners, even corporates...in MASSIVE debt (and the former 2 also add interest ot that debt).  Labor and income stagnation result, draining govt revenues.  Lack of savings and retirement/safety nets result (as they trade+invest off this data). 

The thing is, you can't really control inflation without manipulating something.  And that is wages; the dumb populace can't seem to figure this out yet.  Volcker made sure that the US Chamber of Commerce clamped down on manufacturing and union labor wages back in the 1970s.....and we STILL had high inflation (brought on by oil pressures) and stagantion.

This is why the financial services sector was created: to extract cash via rent seeking, create cash and assets via cheap debt, and then use this cash to pay off politicans/CEOs to tell workers that everything is improving (when its actually declining).

Look at the M2 money velocity chart when you get a chance.  The thing is going down like Monica at a Bill Clinton Cocktail party:

http://www.oftwominds.com/photos2013/CFFP-M2-deficit.png

Keep in mind: WE ARE PRINTING 70+ BILLION/MTH

Wed, 01/08/2014 - 12:19 | 4311659 LawsofPhysics
LawsofPhysics's picture

unfortunately the "laws" continue to reward irresponsible behavior.  If anyone should be "bailed" out, it should be those who have been diligently working and paying down their existing debt.  Until we return to a nation of laws (not men), nothing changes.

Free John Corzine!!  Oh wait, nevermind...

Wed, 01/08/2014 - 11:07 | 4311391 Temporalist
Temporalist's picture

"My perception is that the "struggle through" economy is likely to remain in 2014 which will disappoint the economic bulls"

But not the Gov/Wall St bulls(hitters)!

 

OT but this I didn't see shared on ZH yet:

NYPD, FDNY members cashed in on bogus 9/11 woes as part of massive $400M Social Security fraud: prosecutor

http://www.nydailynews.com/new-york/4-surrender-social-security-scam-art...

 

NYC disability insurance fraud may total $400 million

http://www.cbsnews.com/news/disability-insurance-fraud-may-total-400-mil...

Wed, 01/08/2014 - 11:12 | 4311426 youngman
youngman's picture

This is big business..not only for the Doctors that "approve" the disability to the lawyers and Judges that pass it....billions of dollars given to grease the palms of this business....and once you are on it...you never get cut off...unlike Unemployment....its a dual pension to most of these guys....in Denver 99 percent of the firemen retire with a disablitly...or so it is shown by record....I see them at the lake on their boats and jet skis all the time...

Wed, 01/08/2014 - 11:07 | 4311402 Rubbish
Rubbish's picture

Driving around So. Cal. yesterday afternoon it looked like business as usual. Still tons of folks driving around with places to spend and go. The parks are more crowded with homeless but that is expected.

 

The can kicking just amazes me at it's effectiveness.

Wed, 01/08/2014 - 11:19 | 4311416 NoDebt
NoDebt's picture

Meanwhile, underground, the Morlocks are building in number and increasing in their hunger for Eloi flesh.

Hint: the Morlocks are debt.  You're only seeing the Eloi, who live above ground.

Wed, 01/08/2014 - 11:08 | 4311403 youngman
youngman's picture

By the look of gun sales...the people were buying...probably to protect themselves from what they have bought before....

Wed, 01/08/2014 - 11:35 | 4311501 dobermangang
dobermangang's picture

Yup.  How many TV/Phones/PCs/Laptops/Tablets/GamingSystems does a person need?  Besides Guns and ammo, I guess a few winter coats, hats and gloves were sold this week.  I doubt much of anything else.  We live in interesting times.

Wed, 01/08/2014 - 11:10 | 4311412 Spastica Rex
Spastica Rex's picture

the "struggle through" economy is likely to remain in 2014 which will disappoint the economic bulls.

 

Why now?

Wed, 01/08/2014 - 11:43 | 4311518 Shizzmoney
Shizzmoney's picture

DOW 99999999999999

Wed, 01/08/2014 - 11:12 | 4311425 10mm
10mm's picture

Amazing the investigative prowess into 9/11 fraud but they seem to bypass Wall St and Bankers. 

Wed, 01/08/2014 - 11:30 | 4311465 auntiesocial
auntiesocial's picture

I want to be on the inside track screwing everyone. Where do I sign up? 

Wed, 01/08/2014 - 11:54 | 4311567 Sudden Debt
Sudden Debt's picture

only by invetation...

Wed, 01/08/2014 - 11:13 | 4311427 replaceme
replaceme's picture

Maybe instead of buying bonds, they should be buying Best Buy gift cards.  I am emailing Obama that idea, maybe he'll make me a gift card czar.

Wed, 01/08/2014 - 11:14 | 4311429 corporatewhore
corporatewhore's picture

i see jcpenney (jcp, jwhatever, jrosebyanyothername) is still trying to baffle them with bullshit.  Pleased without releasing any numbers --is this the queen speaking?  The Royal "we" ?  How many fools still believe anything management says at that place?  Probably only the store "dear leaders" borrowing a phrase from the Norks.

I was in over the xmas holidays to return a piece of crap --no lines, no shoppers, no clerks.  It's defined a whole new way to shop I think

Wed, 01/08/2014 - 11:15 | 4311434 sbenard
sbenard's picture

Geel, what a surprise -- that Obama's two top priorities -- tax increases and healthcare -- are a DRAG on economic prospects!

Wed, 01/08/2014 - 11:16 | 4311437 Silver Sativa
Silver Sativa's picture

I was in a few major shopping centers this xmas season, and out of those few times I was there, it was only really busy once. Even while the stores had their pre-post-xmas fire-sales starting on Thanksgiving, (which pissed me off, BTW), it still wasn't enough to resuscitate anything.

People are waiting for the second (or third) camel hump of this depression recession; and people literally aren't buying it. Perhaps an economic collapse would refocus this country to what really matters -- instead of shopping. Blah.

Wed, 01/08/2014 - 11:18 | 4311440 AmericasCicero
AmericasCicero's picture

I visited my old hometown in the small town northeast and everyone I talked to thinks this is the 2nd great depression.  Then I return to washington and everything is all better!  We obviously need to just move everyone here to suck that gov't teat.

Wed, 01/08/2014 - 11:19 | 4311447 WarPony
WarPony's picture

Pot and related stocks are driving high though ... guess it's a growing business?

Wed, 01/08/2014 - 11:24 | 4311462 Silver Sativa
Silver Sativa's picture

I concur! (I wish. :P)

Wed, 01/08/2014 - 11:24 | 4311463 NoDebt
NoDebt's picture

Amazing how quickly politicians strident distain for pot turned into support when they realized they needed new sources of revenue for their states.

I could give a crap less either way since my pot-smoking days are LONG gone, but it's a good object lesson in how politicians will go whichever way the wind blows if it means more revenue for them

Wed, 01/08/2014 - 11:24 | 4311464 Silver Sativa
Silver Sativa's picture

I also <3 your play on words. Lurvs it.....

Wed, 01/08/2014 - 12:10 | 4311618 americanreality
americanreality's picture

MDBX FTW

Wed, 01/08/2014 - 11:22 | 4311457 MFLTucson
MFLTucson's picture

Why do you need retail sales when you can print money?

Wed, 01/08/2014 - 11:26 | 4311469 swmnguy
swmnguy's picture

I don't think the inevitable and permanent decline of consumer spending is going to be as visible as some of us expect.  My grandfather ran a hardware store in southern Indiana through the Great Depression.  That part of the world was pretty much Appalachia, though those not from there may not realize it.  My grandfather said that a 20% decline is enough to kill many businesses and certainly enough to make people's lives very hard, but it means that instead of $10, they spend $8.  Not $0.  And those who profit hugely in a crash actually spend a lot more, though it's on exotic high end stuff, or large-scale asset purchases.

Wed, 01/08/2014 - 11:26 | 4311471 Rising Sun
Rising Sun's picture

If the Fed prints MOAR, the Goobermint can start buying Walmart's inventory and then this problem will be solved too.

 

Now what to do with all that Goobermint inventory??

Wed, 01/08/2014 - 11:46 | 4311530 Iam_Silverman
Iam_Silverman's picture

"If the Fed prints MOAR, the Goobermint can start buying Walmart's inventory and then this problem will be solved too."

 

If?  That's already happening.  Why do you think that the number of people on Extended Unemployment must be maintained?  Why do you think that the rolls of indigent people drawing SNAP benefits continue to grow?

 

Short of direct purchases of food and sundries, this is the "cleanest" method they could identify to help bolster the consumer purchasing numbers!

Wed, 01/08/2014 - 11:29 | 4311472 Handful of Dust
Handful of Dust's picture

Po0r sales, higher unemployment, more people quitting their jobs...

 

All Bullish, right?!

Wed, 01/08/2014 - 11:39 | 4311511 wmbz
wmbz's picture

Correct! The higher the unemployment, the stronger the economey. A well know fact.

Each dollar of unemployment constipation "creates" $1.67 that will be spent on plastic shit from the Chicoms. It's a win, win situation!

It's also what the well known, much loved genius Sen. Moonbat Polosi(aka bugeye) has stated, many times over. 

 

Wed, 01/08/2014 - 11:29 | 4311483 Kina
Kina's picture

We are in the Greater Depression, and just like the Great Depression it is going to take a very long time of bouncing along the bottom before things genuinely start to grow.

Even with astronomical levels of money printing people in much greater numbers are falling into poverty, with and without full time jobs.

This is the new normal, there will not be employment levels and conditions as they were prior 2008. That era is gone for good.

Nothing is going to mainstreet, all is going to banksters and Wall street and that isn't going to change.

Banks are not going to lend enough money to help growth because it is a new normal low spending world of poorer people, globally.

 

China is/will have to face reality, that it can no longer continue massive stimulus printing without causing themselves massive problems from inflation. China cannot provide any more than it has to global growth, and may be providing decreasing levels. Everybody is levered over their heads...so there is no room to expand massively on credit.......and multi trillion dollar deficits haven't provided much, and will provide much less.

 

Ironically to save the day ... a gold standard of sorts may be the last resort.

 

 

 

 

Wed, 01/08/2014 - 11:35 | 4311499 JustObserving
JustObserving's picture

Foreigners will pick up the slack.  They do not give a damn about the infinite spying by the NSA.

The fact that IBM was the only Dow stock down in 2013 due to weak China sales was just an aberration.

Everyone loves the US of A.  Everyone loves the NSA.

 

 

Wed, 01/08/2014 - 11:37 | 4311508 Kina
Kina's picture

As regards gold and silver. Prices so low that mines look at going into caretaker mode...well what a cheap way for China to acquire these....simply buy up the miners at rock bottom prices and take all the production yourself.

 

So not only TPTB and corrupt cartel making it easy for Asia to suck up all the gold and silver at cheap prices....it is making mining stocks cheap enough for them to bought outright at bargain basement prices. Brilliant guys.

Wed, 01/08/2014 - 11:42 | 4311517 dobermangang
dobermangang's picture

This is what everybody needs.  A rubberband machine gun.

http://www.dailymail.co.uk/sciencetech/article-2535224/Thats-got-hurt-St...

Don't laugh.  I'm sure it could defend you against pajama boy and his ilk.

Wed, 01/08/2014 - 11:48 | 4311538 starman
starman's picture

K Mart closing 225 stores Sears 125 JC Penny ?
Ford , GM , HP laying off 20%! Of their work force between 2014-2016.
RECOVERY!

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