The US Economy's Problem Summed Up In 1 Simple Chart

Tyler Durden's picture

Too much mal-invested, Fed-fueled, hope-driven "if we build it, they will buy it" inventory... and not enough actual demand. This has never, ever, ended well in the past - so why is this time different?

At 1.32x, the December inventories/sales ratio is drasticallyhigher than at year-end 2014 and is back at levels that have always coincided with recessions...


And just in case you needed more convincing that all is not well - the current spread between sales and inventories is now at a record absolute high...


As Sales tumble and inventories continue to rise...


And all because The Fed (ZIRP) and Government (Subsidies) are breathing life into Zombies when they should be dead and gone.

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Dr. Engali's picture

That's three charts.

Dg4884's picture

Now that's the kind of snarky comment I would make! 

idea_hamster's picture Deutsche Bank counts its bad loans...

1000 splendid suns's picture

This skew in inventory and sales would fix itself if they would just start dropping the cash from helicopters already...jeesh.

JRobby's picture





LawsofPhysics's picture

Demand for WHAT? Be specific asshole!

Demand for anything that makes a high standard of living possible, YES!

Demand for bullshit PAPER/DIGITAL fucking promises, not so much.


glenlloyd's picture

There's no demand because people have no way to pay for it...they're broke.

And as for high standards of living, you'll have to define what that means because that's way too ambiguous.


tarsubil's picture

How the fuck are we not in a recession when we have decreasing wholesale sales for over a fucking year...?!?!

Al Tinfoil's picture

Anyone who dares to utter the word "recession" will be taken away for re-education.

savagegoose's picture

My inventory of gold n silver would go up if they started dropping cash on me.

ali-ali-al-qomfri's picture

and six sentences, run on, but we'll count 'em.


this should be easy enough for people to look at and truly contemplate no?

WezTheJuic's picture







Good to see you are still around.



maxamus's picture

ZH has leveraged their charts.

Truther's picture

Yellen is about to find out how fake she is. Lloyd, you're fucked.

Bangin7GramRocks's picture

My dream is that if there ever is a day of reckoning for these criminals, they get them with those net shooting guns the apes used to round up the humans in Planet of the Apes. That would be awesome!

KnuckleDragger-X's picture

We don't the planet of the apes because we've got inner-city voters. I just hope doomsday is televised......

nscholten's picture

Did you here is interview on bloomberg this morning?  He sounds fucked.  Didn't he have some kind of cancer?

Hopeless for Change's picture

CTRL+P, Purchase, Repeat

s2man's picture

I thought CTRL-P was for Print.  At least, at the FED.

blindfaith's picture



People have gotten used to not being able to afford to name it. 

Now, they don't care if they buy something or not. 

I have gotten used to 'doing without' quite nicely, thank you

And, even if you go online to look to buy, you are drounded in spam ads and 10,000 duplicate 'buy it now' listings to the point

that you turn the damn computer OFF.  Doing without now almost seems like a nice lifestyle.


See what you have done Federal Reserve idiots.

LawsofPhysics's picture

Blah blah blah...

Allow me to simplify it for you;

Too many consumers and useless eaters, not enough PRODUCERS of real value.

Fuck the bankers/financiers and their political puppets, kill them all.

NOTHING changes otherwise...

EscapeKey's picture

the problem is that there isn't enough millionaires.

LawsofPhysics's picture

Don't worry EscapeKey, we are all going to be billionaires soon...

hedge accordingly.

CheapBastard's picture

<< not enough PRODUCERS of real value. >>


What do you mean? We have FB, AMZN, Linkedin, NTFLX, Twitter, and real stuff like that.



Twaddlefree's picture

Two whole sentences from "Laws of Physics" without profanity...amazing.

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) LawsofPhysics Feb 9, 2016 10:24 AM

"....and not enough actual demand."

Lessee.  "Too many consumers" implies MORE actual demand; it does not imply "not enuf" actual demand.


LawsofPhysics's picture

Demand for WHAT? Be specific. I see a planet (finite biosphere) with 7+ billion people (and growing).

There is in fact plenty of demand for ANYTHING and ANY RESOURCE that makes a high standard of living possible.

Demand for PAPER/DIGITAL BULLSHIT, not so much.

Fuck em. get long sharecropping and guillotines motherfucker, beat the rush.

CheapBastard's picture

People are very angry, not only in the USA but I read the level of anger/discontent in places like South Korea, Taiwan, China and even most of Europe has never been higher. The disconnect between Gubmints and their peeples is extremely high.


Interestingly, Russians are pretty content.

LawsofPhysics's picture

Yes, but remember, the Soviet Union went BANKRUPT and no longer exists...

America's turn motherfuckers...

hedge accordingly.

Vlad the Inhaler's picture

The problem is that millionaires don't spend that much more money than regular folks.  Sure they buy a fancy car once every few years, and eat out at nicer restaurants, but they still just buy three pairs of pants per year etc.

LawsofPhysics's picture

Bullshit. The ten days we spend at Deer Valley every year is more than most people make in a fucking year.

Moreover, the TAXES on our Newport Beach property are fucking stupid.


Put their fucking heads on PIKES!!!

NOTHING changes otherwise.

Commodore Decker's picture

And Deer Valley is quite proletarian as far as ski resorts go.

LawsofPhysics's picture

Another fucker that thinks they should have a say in how I spend my money?

Go fuck yourself asshole. Been farming for generations. My family and my tribe bust our ass to feed stupid fucks like yourself. When it is no longer profitable we will simple feed ourselves and dig in (again). We have fought for this country and many of us (myself include) speak multiple langauages and do business around the world. Like nature eCONomies evolve. evolve or die fucker. We will surive another world war, useless fucking corrupt fuckers like yourself, not so much.


Twaddlefree's picture

"LawsofPhysics" speaks multiple languages? Wow...haven't seen anything but profanity from you, here. Would be nice if you could write that in another language, one that no one else understands. You do realize that you lose all credibility with nothing but garbage being spewed. Omit the profanity, and there aren't many words there.

LawsofPhysics's picture

Oh, I.m sorry did I offend you? LMFAO!!!

Again, the economy went global 40+ years ago. Once American cities go the way of most south American cities, then you senstive types might be paying attention, or be dead.

What particular statement do you think is "false"? My credibility is very much intact.

Commodore Decker's picture

No, Deer Valley REALLY IS proletarian as far as ski resorts go. LMAO

new game's picture

double bullshit, they spend,  trust me i lived on that street, vanity, baby vanity...

BlueStreet's picture

Our version of Chinese ghost towns. 

Infield_Fly's picture
Infield_Fly (not verified) Feb 9, 2016 10:18 AM

Call Elon Musk - he builds shit that no one wants.  He'll know what to do here.

City_Of_Champyinz's picture

Good stuff, nothing to see here...  No wonder the market is trying to go green, it makes perfect sense to me.

A82EBA's picture

it certainly feels different this time but weve been surrounded by baaad news before


If Baron Von Frankenstein can breathe life into Frankenstein then the FED can breathe life into Zombies IMO.

bbq on whitehouse lawn's picture

Their going to need a new word to discribe the absolute distruction of money that negitive interest rates cause.

moonmac's picture

They rebuilt perfectly good waste water treatment plants 10-15 years ahead of schedule, instead of building badly needed new plants because it takes 20 years to get the permits dealing with 50 governmental agencies. All stimulus did was drive demand forward enriching our factory owners even more but now there’s nothing left. Great Depression 2.0 will be the longest in history!

moonmac's picture

Business is dead slow so now we have to do stupid Account Reviews. How are we going to help grow the business? What can we do to increase sales? How about the Fed fucked us and we’re all royally screwed?

Calculus99's picture

Blame the weather!

Surprised nobody calls any jackass economist out who blames the weather because it's hardly unknown is it? Surely you would build the weather pattern into your forecasts beforehand?