The MSM is breathlessly touting the fabulous May retail sales. The consumer is back. Yippee. One little problem. Real wages plummeted in the first five months of this year, payroll taxes and income taxes rose, healthcare premiums are skyrocketing and credit card debt is flat. If wages are declining, costs are rising and credit growth is flat, how could retail sales be skyrocketing? Inquiring minds want to know. The retail sales reported last month were reduced dramatically a week later without fanfare. This report will be revised lower on a Friday night when no one is paying attention.
Here is a link to the report:
Here are my observations:
- Retail sales soared by a whole $2 billion in May versus April. Auto sales accounted for $1.4 billion, or 70%, of the increase. As we all know, this is completely being driven by subprime loans from the Federal government (Ally Financial).
- Sales which are considered discretionary and a sign of consumer health at furniture stores and electronic stores declined by $100 million versus April and declined by $100 million versus last year. Think about that for one second. Home prices are up 12% in the last year. The MSM has been touting the tremendous housing recovery. Shouldn’t all of these home purchasers be buying furniture and TVs? The sales at these stores reveal the fraud. Blackrock and the rest of the Wall Street shysters have created a fraudulent housing recovery in order to boost their balance sheets. The rent to own scam has done absolutely nothing to boost the economy.
- Do people eat out at restaurants LESS when they are feeling confident? Restaurant sales FELL.
- Do people buy LESS clothing when they are feeling confident? Clothing store sales FELL.
- Grocery store sales rose by $350 million due to food inflation that has been running between 5% and 10%.
- The tax assault by the government drones being waged against on-line retailers is paying off. These sales, which had been growing at annual rates of 30%, have cooled to 11%.
- Even though miles driven in the U.S. is at an 11 year low, the amount spent at gasoline stations remains near all-time highs.
The idiots on CNBC and the rest of the faux journalists in the corporate MSM will attempt to convince the ignorant masses that good times are back with huge blaring headlines and hyperbole, but anyone with two brain cells and the ability to critically examine the data knows it’s nothing but a crock of shit.
Did you know that student loans from the Federal government don’t go directly to the school? They go to the borrower. Do you think any of the hundreds of billions being doled out is being used to pay for igadgets, car payments, Izod shirts, steak dinners at Outback, and HDTVs? That couldn’t be happening. Could it?
And so it goes.