How could an economy that is 70% dependent upon Americans to drive their cars to malls and buy shit be in a recovery if gasoline usage has been plunging for the last four years? Petroleum usage is at the same level as 1996. All the Chinese shit has to be shipped by truck to all the dying big box retailers. The MSM pundits always have a storyline to sell. They try to convince the ignorant masses that the decline in the labor force is due to Boomers retiring early. Of course the data shows the over 55 workers soaring to record highs, obliterating that false storyline. Now they peddle the storyline that plunging fuel usage is due to vehicles getting better gas mileage as mandated by the Obamanistas. That sounds awesome and very green. It must be the millions of Volts being sold.
The storyline is obliterated by the facts reported below. The MSM was touting the fantastic auto recovery, with 14.5 million vehicles peddled to the masses with 7 year 0% loans to subprime level borrowers. I guess everyone is buying small fuel efficient cars getting 35 mpg and resulting in the plunge in gasoline usage. One little problem with this storyline. It is complete and utter bullshit. It seems 49% of the vehicles sold were pickup trucks, SUVs, minivans and crossovers. Small energy efficient cars accounted for only 19% of all the vehicles sold in the U.S. The storyline about fuel efficiency sounds great, but the average MPG of all the vehicles in the U.S. is 18 mpg. Three of the top five selling vehicles in the U.S. in December were the Ford F Pickup (19 MPG), Chevrolet Silverado (15 MPG), and Dodge Ram Pickup (16 MPG).
| Dec 2012 | % Chg from Dec’11 | YTD 2012 | % Chg from YTD 2011 | ||
| Cars | 648,316 | 15.4 | 7,414,282 |  18.8 |
|
| Midsize | 286,448 | 3.4 | 3,588,099 | 17.6 |
|
| Small | 250,982 | 32.3 | 2,781,860 | 26.8 |
|
| Luxury | 110,094 | 18.3 | 1,035,189 | 11.6 |
|
| Large | 792 | -50.6 | 9,134 | -86.6 | |
| Light-duty trucks | 707,682 | 3.7 | 7,077,591 | 8.3 |
|
| Pickup | 204,683 | 0.8 | 1,941,567 | 6.7 |
|
| Cross-over | 291,176 | 9.3 | 2,998,723 | 9.3 |
|
| Minivan | 74,547 | -6.5 | 833,468 | 13.5 |
|
| Midsize SUV | 72,185 | 7.2 | 708,527 | 9.3 |
|
| Large SUV | 29,157 | -1.5 | 237,550 | -9.1 |
|
| Small SUV | 16,774 | -1.6 | 197,265 | 13.4 |
|
| Luxury SUV | 19,160 | 0.6 | 160,491 | 2.3 |
|
| Total SUV/Cross-over | 428,452 | 7.3 | 4,302,556 | 8.0 |
|
| Total SUV | 137,276 | 3.2 | 1,303,833 | 5.1 |
|
| Total Cross-over | 291,176 | 9.3 | 2,998,723 | 9.3 |
|
http://online.wsj.com/mdc/public/page/2_3022-autosales.html
The storyline from the Obamanistas is that his fuel economy policies and green initiatives have resulted in the reduced consumption. He wouldn’t want to tout the Obama Depression as the real reason. The Obama Volt had sales of 23,000 even though GM offered leases at $289 per month, generating a huge loss per lease. Plus you the taxpayer provided $7,500 per Volt given away. Half the sales were in California, land of the delusional. The storyline about GM being saved by Obama and doing well is also false. Their market share has plunged from 19.6% in 2011 to 17.9% in 2012, even as they utilize Ally Financial to dole out subprime loans to deadbeats and channel stuff inventory. Ford’s market share also fell from 16.8% to 15.5%. Does this jive with a storyline of success?
With this huge drop in consumption and the Obama touted Bakken Oil Boom, we most certainly paid the lowest price for gas in years. Not quite. We paid the highest average price for a gallon of gas in the history of the country. We beat the previous record set in 2011. Who says Obama hasn’t set any records? You may have noticed the 10 cent rise in the last few weeks as we get set for a new record in 2013. The energy independence storyline is already getting a little long in the tooth as the myopic MSM pundits seem to have foregotten the rest of the world uses oil and it is a fungible commodity whose price will be set at the margin. And that margin will go relentlessly higher even as our progressing depression deepens.
The recovery storyline will continue to be peddled to the masses by the MSM and the Obamanistas. As the payroll tax increase further impoverishes the middle and lower class workers and the full negative impact of Obamacare crushes small businesses, even the bubble headed blondes on CNBC and Fox will get it. Maybe not.
LLPOH says:
Come on, Admin. You know that instead of driving, every one is walking down to the mall these days. The US is on a massive health kick. See, here they are all charging down to the mall:
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6th January 2013 at 7:09 pm
LLPOH says:
And the ones that are not walking are biking it:
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6th January 2013 at 7:10 pm
LLPOH says:
Or skating:
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6th January 2013 at 7:16 pm
Administrator says:
llpoh
That picture is like waving a red cape in front of a bull for AWD.
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6th January 2013 at 7:20 pm
LLPOH says:
How’d ya like a whiff of that seat?
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6th January 2013 at 7:22 pm
Administrator says:
Smells like chicken?
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6th January 2013 at 7:25 pm
Micro-Be says:
Do you all think we are at a point where the Presidential term limit can be repealed? They keep introducing it… Drudge had a link up today but it has since vanished. I’d like to think it wouldn’t get past the states, but it seems everything is nearly compromised, as if it is all rubber stamped and the only worry is making sure the media does its job by properly “educating” the populace about what is good and bad.
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6th January 2013 at 8:01 pm
DaveL says:
Micro-Be
http://www.theblaze.com/stories/dem-rep-introduces-bill-to-abolish-presidential-term-limits-does-it-have-any-chance-of-succeeding-hint-no/
Unless this guy gets a third term, half the talking heads on MSNBC and CNN will be unemployed in 2017.
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6th January 2013 at 8:07 pm
Micro-Be says:
DaveL
One of the comments on the page said something to the effect of it probably won’t pass now, but it isn’t going away. I have no faith in America or the American people in general. They got a nice system for the masses: 1. introduce idea through television/media 2. idea has a name with a concept behind it 3. actual idea is complete opposite of the name of the idea (Patriot Act, Patient Protection and Affordable Care Act) 4. Americans fall for it.
I’ll never underestimate the vapid nature of this populace. TPTB will find a way to sell it, probably more stuff like Bush screwed up so bad he needs more time, etc.
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6th January 2013 at 8:26 pm
Thunderbird says:
Recovery or no recovery the corporate restaurants are doing a great business. The roads are full of cars and the malls are always swamped.
When I see the corporate restaurants like The Red Lobster, Roadhouse, Olive Garden, Salt grass, and others like them start closing down then I will know the economy is in trouble. For now they are booming.
As far as I can see in my travels in the last month in California, Arizona, Nevada, Texas there is plenty of money circulating out there. Where it is coming from I don’t know but it is keeping things humming.
So with all this money being spent and circulated for travel, restaurants, and packed malls what does it mean that there is no recovery? Recovery from what? Everyone seems to have money.
What I did see in California were places where many people, (mostly younger) walking around State welfare facilities seeming to be waiting for assistance, yet the businesses I visited were in need for skilled workers.
It looks as though properly educated and skilled people can get jobs while there are many people lacking the skills or responsible attitude to get a job. I guess a good word for them are they are the walking dead in our society.
With a growing population of these walking dead that the State seems to be taking care of, it seems there will come a time when there will be to many of them to support. I think someone made a video game about them and in the game they are called Zombies. You have to kill them to keep them from getting to you. But the more you kill the more they come until they finally overwhelm you and get you. Think this is what is happening to our country?
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6th January 2013 at 10:21 pm
NickelthroweR says:
The images of the overweight Americans made me laugh. I was banned from RAW Story today for pointing out the fact that obesity and not gun violence was the biggest health problem in America.
In the comment section, they were screaming for gun confiscation and I made several posts saying that we shouldn’t stop there since obesity kills far more than guns and that the government must confiscate food from all the fatties. Since I was trying to prove a point, I also suggested that anyone not responsible enough to maintain a healthy weight should not be allowed to vote since they clearly are incapable of managing even the most basic human functions.
This, of course, infuriated the gun grabbers and a moderator banned me. The left loves censorship.
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6th January 2013 at 1:43 am
Llpoh says:
Nickel – Nice!
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6th January 2013 at 2:00 am
marissa says:
“…. fantastic auto recovery, with 14.5 million vehicles peddled to the masses with 7 year 0% loans to subprime level borrowers”
SEVEN YEAR CAR LOANS?! Seriously? I’m fucking speechless.
A depreciating asset that loses half its value as soon as you drive it off the lot–and Americans are going to be paying 100% full price for that piece of shit for seven years come rain or come shine–
I’ve never heard of a seven year car loan before. wow
Dr. Housing bubble did a good analysis of the cost of car ownership and commuting:
“A 40 mile one way commute is likely costing you $11,100 per year. This is not farfetched when you consider the monthly car payment on many new cars to be $500 alone (or $6,000 per year). If two people in the household are making this commute, the actual annual cost is up to $22,200. After 10 years this is a cost of $222,000 and just imagine if this money was actually invested?”
http://www.doctorhousingbubble.com/commuting-costs-california-car-costs-real-estate-and-commuter-culture-california/
And the US average median income is approximately $26,364 per year. That means the car is costing Americans damn near half their wages per year.
Once upon a time in America the personal automobile was the ticket to freedom and mobility. It has become an impossible ball and chain.
Fuck that. We ride the bus.
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6th January 2013 at 5:38 am
flash says:
The Constitution broke our country…git rid of it!
Perfessers should no…they be educated.
http://www.nytimes.com/2012/12/31/opinion/lets-give-up-on-the-constitution.html?hp&_r=0
Let’s Give Up on the Constitution
By LOUIS MICHAEL SEIDMAN
AS the nation teeters at the edge of fiscal chaos, observers are reaching the conclusion that the American system of government is broken. But almost no one blames the culprit: our insistence on obedience to the Constitution, with all its archaic, idiosyncratic and downright evil provisions.
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6th January 2013 at 5:58 am
Administrator says:
Thunderbird
You are wrong about Olive Garden, Red Lobster and Roadhouse. Their sales are in decline and so are their profits. Google their last earnings report.
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6th January 2013 at 8:40 am
Thinker says:
I can personally vouch for people walking to Walmart in rural communities, shopping cart/tote in tow. And, because they have to walk and carry/tote the stuff home, they’re not going as often and are buying less.
Then there’s my retail research, which tracks number of shopping trips and spend / cart value per trip. Both down significantly, particularly among minority populations.
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6th January 2013 at 9:34 am
OF says:
Admin: I´ve been quite surprised hearing these days that VW North America sales were supposedly up 35% in 2012… What´s going on?…
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6th January 2013 at 9:35 am
Administrator says:
OF
I guess VW is making good cars. That partly explains why GM and Ford’s market shares are declining.
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6th January 2013 at 9:45 am
Administrator says:
Thinker
We need to provide minorities with more food stamps and Obama cars so they can increase their purchases. It’s the only solution.
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6th January 2013 at 9:47 am
Maddie's Mom says:
I haven’t been to a mall in years.
I shop very little at walmart.
I spent $300 on my last trip to the local grocery store, also buying pet products and various sundries there (and no doubt paying more).
My efforts will have no impact, but I like supporting smaller and more local businesses and, if nothing else, I avoid the creeping nausea I usually feel before I make the exit doors at ChinaMart.
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6th January 2013 at 11:09 am
Thunderbird says:
Admin:
You may be right about declining sales & profits at some of the restaurants like the Red Lobster, Olive Garden, and Roadhouse but the cars in their full parking lots do not lie. We are a culture that like to eat out. I am also amazed at the number of fast food restaurants that are thriving including McDonalds that just keep going and going. And what I still cannot fathom is the low grade fast food pizza places that are booming. Maybe it is because they now accept EBT cards.
How can the economy be so bad when so many of these places are booming?
Consider this: We are now a high tech nation with machines that do most of the production. This requires far fewer people in the work place. In addition to this automated phone systems have replaced live people on the other end of the phone to handle customer service.
So in essence people no longer need to work. Soon machines will be coming online to examine people with health problems and prescribe medicines so less people will be working in healthcare. We have become an automated society with machines and computers running everything.
So the government is dealing with the reduced need for employment by putting people to work for them and for the others they are creating entitlement programs.
I think government employment is larger than we would like to think. Have you ever noticed that when there is a government holiday or the schools are out that the traffic on the roads is greatly reduced?
While it may be true that consumerism is 70% of the economy the majority of these items are either produced outside the country, or automated assembly lines, or from companies using computers like the communications industry.
So relatively speaking all the government has to do to keep the economy going is to supply the money; which they are doing through all types of entitlement programs. This is why the concept of a debt limit is obsolete and only applies to the old gold backed currency. Since we now have had a fiat currency for many years and the production comes from machines and computers many people are left without work but still need to participate in the consumerism. So the government fills this need by creating entitlement systems.
Put this in your pipe and smoke it Admin, because that is what is going on. The recovery storyline is not about production from the private sector (which is dying) but rather from the consumerism that needs to continue to keep this automated machine going. The only way to do that is to keep the spending going, and to do that with a growing number of people no longer working, is to increase entitlement programs.
This is the Terror of the situation Admin.
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6th January 2013 at 12:11 pm
Novista says:
This is the Terror of the situation Admin.
Au contrarie … this is the birth of the Matrix and the sheeple will love it.
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6th January 2013 at 5:50 am