OOPS!!! Missed again. The winter weather storyline about retail sales collapsing is looking old and tired at this point, as retail sales continue to suck into summer. Maybe it is too sunny and too pleasant for people to buy stuff they don’t need with money they don’t have. The miniscule 0.2% increase in June retail sales confirms my many previous Retail Death Rattle articles about average Americans being tapped out and the shitty part time service jobs not filling the bill. When you consider the true rate of inflation running above 5%, these retail sales figures are a disaster. But of course the corporate MSM mouthpieces are already doing their darndest to paint a rosy picture and promote the falsehood of economic recovery. If the Fed can just keep interest rates at 0% for a few more years, the average American will surely benefit from the trickle down, as the oligarchs cups overflowth.
Rather than listen to a CNBC bimbo or watch some Wall Street economist hack, let’s go to the actual government propaganda report:
Here are my observations:
- Retail sales were up by a whole $1 billion over May and up $3 billion over April. Not exactly a booming consumer recovery. And when you open the hood and look at the engine, it gets much worse.
- Total retail sales are up by only 3.6% in the first six months. When you remove the debt financed auto sales, it drops to 2.6%. Let’s be generous and say that prices are only rising at 5% on an annual basis. That means that real retail sales are falling by 2.4%. Is this being reported by the MSM? Hell no. They have a job to do – keep you ignorant and in the dark. But, the fact that real retail sales are falling is proven by the collapsing retail profits and thousands of retail stores being shuttered.
- Now auto sales are falling. Auto sales were $700 million lower in June than July. That’s funny because I keep reading about auto sales being at seven year highs. A critical thinking person might wonder how this could be. The automakers wouldn’t be jamming their inventory down the throats of their dealers and recording sales, would they? If they can’t generate increasing auto sales with 7 year o% loans to subprime deadbeats and dupes, then the jig is up.
- Retail sales were $18 billion higher than last June. That is a 4.3% increase. Excluding the $5.4 billion of auto “renting” disguised as sales, retail sales were up only 3.7%. The majority of gains were from food, pharmacy, and online retailers. This is all inflation generated gains.
- Discretionary spending is dead. Electronics, appliances, and furniture stores had flat sales in June versus May and versus last June. How can we be having a housing recovery if there is no increase in purchases for homes? Sporting goods, books, and hobby stores have seen their sales plunge in the first six months of 2014.
- Restaurant sales fell in June. With food prices rising rapidly, this means traffic is collapsing. Ask Olive Garden.
- Even on-line sales have slowed as they only rose by 8% over last year. For years these sales grew by 15% to 25%. Maybe taxing internet sales has an impact.
Average Americans have run out of discretionary cash. They are using their credit cards to pay their real estate taxes, utility bills, and income taxes. The retail implosion will continue unabated no matter what propaganda is spouted by the MSM.