Our owners reported June retail sales this morning. They provide the adjusted (manipulated positively) and the unadjusted. Here is a link to the press release:
The results were awful, even with the fake seasonal adjustment added to the real numbers by the government drones at the Census Bureau. The “adjusted” retail sales increased by a whopping .37% over May and 5.7% over last June. Of course, the non-adjusted retail sales fell by 5.4% from May and increased by only 3.7% versus last June. The huge discrepancy in the year over year numbers is explained in the chart provided by Zero Hedge that shows the blatant data manipulation being used to paint a positive picture. It clearly shows signs of desperation among the ruling class.
The annual increases are before inflation. Using a true measure of inflation, which is in excess of 5%, real retail sales are declining on a year over year basis. It’s even worse when you dig into the details. Year over year retail sales were up by $15 billion. The major contributors were:
- Auto sales were up $5.9 billion or 7.8%. This jives with the auto recovery storyline being peddled by the MSM. One problem with this storyline. The profits of GM, Ford and Chrysler are flat to down over the last year. How can the auto market be booming while profits are tanking? It is because 50% of all the car sales are too subprime borrowers through Ally Financial and the rest of the Wall Street shyster banks. The seven year 0% loan deals are being done at a loss. But they’ll make it up on volume. GM continues to cram inventory down the throats of its dealers.
- Existing home sales are up 13% in the last year. New home sales are up 29% in the last year. If this is a true housing recovery generated by people buying houses from other people, then home furnishing sales and electronics & appliances sales should be soaring. Let’s examine the facts:
- Home furnishing sales are up 1.6% over last year. Who needs furniture in their new house?
- Electronics and appliance sales FELL 2.3% over last year. Who needs TVs, washers, dryers, refrigerators, or stoves in a new house?
- On-line sales accounted for $3.5 billion of the increase as people can’t afford to drive to the dying ghost malls. On-line sales actually declined by $1.7 billion from May as government drones wage an all-out battle on them by imposing sales taxes on those sales.
- Gasoline sales were up by $1.4 billion as the country continues to be on the verge of energy independence. This is doing wonders for consumers finances.
Excluding the auto sales and gasoline sales, retail sales declined in June versus May. That is a sure sign of economic recovery. We know that consumer spending accounts for 71% of GDP. We also know that real retail sales are negative. We also know that the USD is at a two year high, making U.S. exports more expensive and hurting our pathetic manufacturing industry. State governments are being forced to cut spending because they must balance their budgets. The sequester has slowed the rate of increase in Federal government spending. Even the drones at the BEA won’t be able to fake a positive GDP in the 2nd quarter. We have been in a recession since the 4th quarter of 2012. It is getting worse. Data manipulation does not change the facts. The Blackrock “rent to own” housing recovery and Ally Financial subprime auto recovery are being driven by the same cheap Federal Reserve credit that created our last financial crisis. I wonder how this will end.
The stock market hit a new all-time high today. The gap between the haves and have nots grows ever wider. The oligarchs continue to loot and pillage while the average middle class American falls further behind. Those are the facts. Ignoring facts doesn’t make them go away.