America - We Have A Problem

Tyler Durden's picture

If "everything is awesome'... and 70% of the US economy is personal consumption... and Q1 weakness was all weather and port related? Then why are these charts doing this...


Retail sales growth has fallen and can't get back up...


And Wholesale sales have collapsed...


Perhaps, just perhaps, it really is all a big con and all the Fed really has is "confidence trickery" as a policy tool (and a horde of group-thinking, status-quo-beholden talking heads to 'confirm' anecdotes).

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Sonic the porcupine's picture

Everything is awesome!

Tribulation Blues's picture
Tribulation Blues (not verified) Sonic the porcupine Jul 12, 2015 4:47 PM

We do indeed have a problem... there is an update today re the Midland Walmart being turned into a detention and processing center. This is on top of the contractor who blew the whistle! The collapse may be precipitated in the US anyday now...

CaptainAmerika's picture
CaptainAmerika (not verified) Tribulation Blues Jul 12, 2015 5:02 PM


Manthong's picture

Mitch Feierstein sums it up pretty well:

“You can’t taper a Ponzi” 

max2205's picture

I thought we faked our numbers? 


Off with their heads!

two hoots's picture

Those that can afford stuff don't need stuff.  Those that have enough stuff don't want to waste money on more stuff.  Those with not so much stuff can't afford more extra stuff but have what they need.   Those that want stuff have no  means to get it.   Stuff is not so important anymore as people prefer events/places/connections/friends/communication/sharing/memories vs stuff you dust or store in the garage.    So we create Free trade, TPP, which opens us to more global people who want our stuff. 


Fukushima Fricassee's picture
Fukushima Fricassee (not verified) two hoots Jul 12, 2015 6:24 PM

Your stuff is shit.

Dollarmedes's picture

See, THIS is the shit I was talking about. Those sales are clearly worse than Q1, we all know inventories are still stuffed...nothing has changed for the better, and yet the Atlanta Fed's GDPNow that was so accurate last quarter says +2.3%.


Stuck on Zero's picture

More of this BS about personal consumption is 70% of the economy.  Personal spending after taxes is about 25% of the economy or about $$4.2 trillion. 



weburke's picture

"Ex" meaning =excluding drug stores= I assume. Surely they are booming. 

BlindMonkey's picture

Great point. America will get through this with the assistance of lots of anti-psychotic/depression meds. No worries folks.

runningman18's picture

If you count durable goods, non-durable goods, and services, yes, it adds up to around 70% of GDP.  Of course, the Bureau Of Economic Analysis is a propaganda machine for the Federal Government, so it really depends on whether or not you believe anything they have to say.

Took Red Pill's picture

No wonder China's markets are tanking. The US is not buying their stuff!

XAU XAG's picture

America-We Have A Problem





Oh...................yea both!


Citizens cannot afford to buy = Business lose sales = Government gets less taxes (to pay debt)

Government borrows more to pay for loss and then............

Increases taxes to payoff debt = Citizens have less money to buy things so back at the begining.


Anyone else seeing this accelerating exponentially in all debtor nations..................I think Greece is showing us what is going to happen.



America & co had a problem when they started Income tax etc................been going on a long long time................but on a long enough time line it all goes to.........................................Zero

sam i am's picture

WE don't need no stinking sales.

astartes09's picture

You people are idiots.  No one gives a shit about Midland TX.

Big Corked Boots's picture

Right. Everybody cares about what goes on at East 86th and Park.

Takeaction2's picture
Takeaction2 (not verified) Tribulation Blues Jul 13, 2015 12:47 AM

I read what was posted on this link.  It is to say the least very interesting.  We will soon see what plays out.  Thanks for this post...

Last of the Middle Class's picture

The one north of the Loop? And would that be a detention center for illegal aliens or confederate flag waving terrorists?

DeProgrammed's picture

I often wonder if these extreme conspiracy sites are actually Fedcoat diversions from the "real" problems of a collapsing economy, which indeed would make us "political prisoners" of a centrally planned (albeit seasonally adjusted) nightmare.



Wannabe_Oracle's picture

While replenishing my water bottle at the company cooler Friday afternoon I overheard some folks saying "See, everything is fine, I told you not to worry. Greece is under control and China is contained". I nearly spit my water across the room...

HowdyDoody's picture

"Everything is awesome!"

What difference does it make?

rogerrabbithole's picture

The charade will end soon.

jimfcarroll's picture

Everyone was home reading Zerohedge.

umdesch4's picture

Yeah! I bought a Zerohedge t-shirt. I hope that made it into the numbers.

Navymugsy's picture

Zerohedge shirts with the stars and bars? Excellent!

bfellow's picture

My investment portfolio for 2015/16 is long silver and lead.

stant's picture

Confederate flags sales will make July pop

HowdyDoody's picture

Start a rumor that the gubmint is going to confiscate guns or ban certain types of ammo. The subsequent panic should help sales figures.

Wannabe_Oracle's picture

According to all of my walking dead friends and co-workers everything is fine - no worries here...


Escrava Isaura's picture




Well said sir.


Anyway, here are the real problem(s), in my opinion:

The money system of living beyond ones means is the root cause of our ignorance and complacency.

Capitalism continuous need of growth on a finite planet is the fuel.

Growing demographic is the tinder.

Lack of enough energy will ignite this fire.


Dr. Engali's picture

Clearly you have no idea what you are talking about. This is a debt based monetary system, it has nothing to do with capitalism. If this were a capitalist system then we would have had a lot of failed institutions and a reset of the whole system in 2009. The system we have is a debt based fascist system, and any system based on debt must have continuous growth

OC Sure's picture

The system is only "debt based" because there is a monopoly on the "monetary"system. This has everything to do with capitalism. If this were a capitalist system then the monopoly would not exist and, yes, institutions would fail. You are correct in this respect but for the wrong reason.

The essence of capitalism versus all the other *isms is its moral premise. The counterfeiting system is only possible because of the use of force by the "government," i.e., the monopoly.

That civilization flourishes under capitalism and the end result is that there is the highest abundance of values produced is only a bonus. It is not the economics that determines capitalism, or any other *ism. It is the use of voluntary exchange versus the use of force which determines the former and latter respectively.

Again and as always, capitalism is a moral issue (that is, what are individual rights?) and the positive economics is just icing on the cake!

ersatz007's picture

Sorry. There were monopolies before the gov't became one.

Memedada's picture

Not true. You can have – and for the most part have – capitalist economies without any meaningful individual liberties/rights. There’re many models of capitalism, for instance (to name a few):

Laissez-faire capitalism (the libertarian dream/nightmare – look towards all the failed SAP’s IMF/’The Chicago boys’ have forced down the throat of third world countries (oligarchs) in need of debt and look at places with no or powerless states/civil societies: Somalia comes to mind – should be an economic miracle according to ‘US libertarians’)

Monopoly capitalism (the more normal version were – after some initial real competition – the ‘winners’ consolidate their power in conglomerates, multi-/trans-nationals and cartels)

Social democratic capitalism (the Scandinavian model. Substantial redistribution through taxes – especially on labor. Healthcare, education, infrastructure, pension etc. etc. is provided by the state and paid by taxes)

Fascist/totalitarian capitalism (the state has become a tool of the corporations – democracy has become irrelevant and/or a spectacle at best). Right now this is the global and dominant version of capitalism


The only individual freedom that could be attributed to capitalism is the freedom/right to own stuff. Individual property rights are the only almost sanctified right in capitalism. And it’s only a right if you got stuff you can claim is yours – and if you have the power to back your ‘right’ up with (= that’s one of the reasons capitalists ends up supporting the state, when they got a lot of stuff that needs protection. And/or they see other people with stuff that they need – think the Iraq, Afghanistan etc. wars).

Furthermore, the monopoly on fiat creation is privately owned. It’s not the state that’s counterfeiting – it’s the FED (a private “bank”/debt-factory = an institution to ensure the total enslavement of the bewildered masses to the capitalist oligarchs/the money masters).

Memedada's picture

The monetary system, the size of the state/state intervention and the amount of distribution are not defining of capitalism

Capitalism is an economic system and a mode of production in which trade, industries, and the means of production are largely or entirely privately owned. We live in an economy were about everything productive/profit generating is privately owned = we live in a capitalist economy. Maybe not the fairy tale version dreamed about by the ‘US libertarians’. Real anarchist (real libertarians) knows, that the power automatically accumulated in a capitalist economy eventually will lead to the kind of shit-show we got today.

That capitalism should be a ‘moral imperative’ is just foolish. The only ‘moral’ in capitalism is you don’t have to be moral – the system cherishes greed, self-centeredness, egoism, materialism and short-sighted gains over long-term sustainability.

You can easily have a huge state, a totally regulated market and substantial redistribution (to make sure the serfs don’t revolt) and still live in a capitalist economy.

 But yes, it’s a fascist system – it’s the merger of corporate and state power. However, it’s the first who call the shots – the latter is just a tool. The corporate power is derived because we live in a capitalist economy the means of production are largely or entirely privately owned.

And yes, libertarianism – the real sort – is left-wing: "Remember that the United States is out of the world on this type of thing. Britain is to a limited extent, but the United States is on Mars. So here, the term 'libertarian' means the opposite of what it always meant in history. 'Libertarian' throughout European history meant 'socialist-anarchist.' The worker's movement--the socialist movement--sort of broke into 2 branches, one statist, one anti-statist. The statist branch led to Bolshevism and Lenin and Trotsky and so on; the anti-statist branch, which included left-Marxists like Rosa Luxumberg, kind of merged with a big strain of anarchism into what was called 'libertarian socialism.' So 'libertarian' in Europe always meant 'socialist.' Here, it means ultra-Ayn Rand or Cato Institute or something like that. But that's a special US usage having to do with the--there are a lot of things special here."

-          Chomsky, “Conversations with History”, " target="_blank">link. " target="_blank">


roddy6667's picture

Capitalism is much like a shark. It needs to be constantly moving ahead or it dies. Relationships are the same way. (Seinfeld)

thepigman's picture

The master plan is to get all the native born frogs completely comfortable with amalgamating into the low wage US-based Hispanic serf population of 50 million and growing fast. Ask Hillary or Jeb.

Philo Beddoe's picture

The problem is simple. The US consumer needs more credit. 

Escrava Isaura's picture





All debts can be paid as long as the new credit is larger than the current debt…


vie's picture

Borrow more, lower interest rates, print more money, problem solved.  Everyone wins --for a while.

FIAT CON's picture

As Edward G Griffin(Author, Creature from Jekyl Island) states, in the hidden secrets of money " For  a While"

r3phl0x's picture

Let's try giving them 99-year mortgages at -1%.

roddy6667's picture

Sign me up. I'll buy some rental properties and put Section 8 tenants in them. Rinse and repeat. Profit.

thinkmoretalkless's picture

Call it normalcy bias,mass delusion or whatever, it has happened throughout history and it is left to other generations to wonder what we were thinking. It is human nature to stay with the herd and it is being exploited by the wranglers today.

TheRicker's picture

"crunch crunch" "smack smack" Got a huge bias going here. Dumbass herd is taking me off the cliff. Don't want to go.

ncdirtdigger's picture

Got me a little doom n gloom woodie goin' here.

who cares's picture

Just in from the prime minister of Canada: the econmy is tanking. I have the feeling that we have gone over the cliff and the next BS form the MSM will be (as usual): the second half will be much better! I think the Titanic has already struck the iceberg, it is up to you: run for the lifeboats or continue dancing.