RETAIL SALES SURGE!!! ACCORDING TO MSM – OH YEAH IT WAS FOR GASOLINE

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Posted on 13th March 2013 by Administrator in Economy |Politics |Social Issues

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I see the huge MSM headline that retail sales SURGED in February. Glory be to the father, the economy is saved. One little tiny itsy bitsy problem. The SURGE was due to gasoline prices going up 15% and you having to spend gobs more money filling your gas tank. But that doesn’t make a good headline.  Here is a link to the retail report:

http://www.census.gov/retail/marts/www/marts_current.pdf

 Here are my observations:

  • “Adjusted” retail sales rose by $4.4 billion, but unadjusted sales FELL by $1.4 billion. Gotta love those government “adjustments”.
  • Note this closely. Of the $4.4 billion SURGE in retail sales, $2.3 billion was from gasoline stations. For the math challenged morons in the MSM, that means that 52% of the increase was due to average Americans spending their hard earned wages on fuel. Thank you Ben Bernanke for that non-existent inflation.
  • Another $900 million of the increase was from auto sales, which are entirely financed by cheap government debt through Ally Financial (Failed the Fed stress test) and the other criminal Wall Street banks. That accounts for another 20% of the increase.
  • Grocery stores accounted for another $400 million as food prices continue to rise. That accounts for another 9%, with internet purchases increasing $600 million (14%) because people can’t afford to drive to malls anymore.
  • Gas, autos, food, and internet purchases accounted for 95% of the retail sales SURGE. What a fantastic month!!!!
  • Sales at furniture stores, electronics stores, sporting goods stores, and restaurants FELL, even using the good old “adjusted” government figures. This is called discretionary spending. It’s where people spend when they have something left over from trying to survive their day to day existence.

I suppose the stock market will SURGE on this wonderful data. It’s really hard to watch this propaganda machine in action when you know the truth. So it goes.

U.S. retail sales jump 1.1% in February

WASHINGTON (MarketWatch) – U.S. retail sales posted the biggest increase in February in five months, but about half the increase took place at gas stations and reflected higher prices at the pump. Sales rose a seasonally adjusted 1.1% last month, or by 1.0% excluding the auto sector, the Commerce Department said Wednesday. Economists surveyed by MarketWatch expected retail sales to jump 0.7% for both the overall number and minus autos. Sales rose a smaller 0.6% excluding gas stations and 0.4% minus autos and gas. Retail sales are a good proxy for how fast the U.S. is growing and the latest data sugggest consumer spending is fairly steady. In the past 12 months, retail sales are up 4.6%, slightly more than double the rate of consumer inflation. Last month, sales surged at auto dealers, gas stations, building-material stores and Internet retailers. Gas-station sales shot up 5%, the biggest increase since oil prices spiked last August. Sales also rose slightly for stores that sell clothes and general merchandise. Sales fell at department stores and shops that sell home furnishings, electronics, and sporting and hobby items. Bar and restaurant sales also declined. In January, the increase in retail sales was revised up a tick to 0.2%. December sales were unchanged at a 0.5% gain.

 
 

2013 PRICE INCREASES

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Posted on 29th December 2012 by Administrator in Economy |Politics |Social Issues

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Your taxes are going up in 2013. But turn that frown upside down. At least prices will be going up and your real wages will be going down. Sounds like a recipe for economic recovery. But don’t worry. The magicians at the BLS will adjust that inflation away so they can starve grandma by keeping her SS increase well below her cost increases.

12 Things That Will Be More Expensive in 2013

By Laura Heller, dealnews contributor

While we like to focus on saving money and falling prices, it’s important to recognize when certain items are, conversely, becoming more expensive. And unfortunately, consumers can expect select electronics, smartphones, cars, and food to cost more in the coming year. Thanks to mature technologies, a lack of innovation, higher prices for precious metals, added features, and a drought, 2013 looks like it will be just a little more costly.

Each year, we here at dealnews take a look at items that are expected to cost consumers more in the coming year, and it seems as if some prior trends are finally coming to an end – the price of gold may finally hit its peak in the next few months – while the cost of a college education is still on the rise. Luxury goods continue to command an ever-increasing premium, and one new hot commodity – copper – could be problematic for home owners and beer drinkers alike.

Fuel Efficiency Ratchets Up the Cost of Cars

Gas prices may be falling, but cars that run on it are getting more expensive. Earlier this year, the Obama administration issued new standards that require automakers improve fuel efficiency, and the cost of upgraded engines alone is driving up prices. Toyota hiked prices on its mid-size Camry by roughly $175, and among best selling luxury vehicles, the 2013 Lexus CT 200h will be almost $3,000 more than the 2012 model.

Grocery Prices to Increase by as Much as 4%

Meat, poultry, and dairy prices are all expected to rise thanks to this summer’s drought. Feed corn and grass were most effected, and the impact from their scarcity will soon be felt at the grocery store: price increases will hit right along with the new year. Since drought conditions forced farmers to reduce the size of their herds to combat higher feed costs, the price of beef and chicken is also slated to rise. The cost of dairy products, too, will be affected, as fewer and leaner cows produce less milk. Overall, the USDA expects food prices to rise 3.5% to 4% in 2013.

Grain Prices Affected by Drought

Cereal and bakery product prices will rise too, as a result of the 2012 drought and lower wheat yields. Prices in this category began creeping up in October, and the USDA’s Economic Research Service forecasts cereal and bakery product prices to rise 2.5% to 3.5% next year.

Health Care Premiums on the Rise

Obamacare not withstanding, employee health care premiums are expected to rise an average of 6% in 2013, according to Aon Hewitt, a human resource consulting firm. That amount will vary by state and type of plan, but overall, employers will face higher premiums and the increased cost will be passed along in part to employees.

High-End TVs and Home Theater Systems Hit New Highs

While there will always be budget home entertainment options, folks who want the latest and greatest in this department will face some shockingly high price tags in 2013. According to Jeff Joseph, spokesman for the Consumer Electronics Association, Ultra HD TVs — which include an extremely high pixel density — sell for $20,000 to $25,000. High-end audio manufacturers too aren’t holding back, as they incorporate premium features like Apple Airplay or standard DLNA that lets users control the entire system wirelessly. These features can drive up the cost of AV equipment in an instant.

Computers Push High-End Features

As tablets continue to gain momentum in the consumer electronics realm, computers are returning to their original function as work-related machines — albeit more powerful and expensive. According to Stephen Baker, vice president of industry analysis at The NPD Group, Apple’s new notebooks with retina displays are among the highest-priced models out there, and Microsoft’s latest operating system, Windows 8, is driving the adoption of premium touchscreen PCs.

Even geeks and gamers could see higher prices, as Intel plans to release processors that are soldered onto motherboards in 2013, rendering them un-upgradeable. This would make DIY upgrades to a desktop machine impossible, forcing the computer-savvy to opt for a custom configuration from the manufacturer, which is, as a general rule, more expensive then getting a deal on the boxed CPU and replacing it on your own.

Copper Will Be in Demand and Beer Prices Will Suffer

Move over gold, it’s copper’s time to shine! Copper prices could be on the rise thanks to a move by the SEC to approve a fund to trade the metal. The fund could lead to scarcity and higher prices, as it did for gold. The problem is that copper is used in plenty of consumer items, including residential water pipes, wire, pots, and kettles, as well as equipment for brewing beer, distilling liquor, and making candy.

Say Goobye to Subsidies for Smartphones

The U.S. smartphone market has long been subsidized by service providers, offering phones at reduced prices with the signing of long-term contracts. In 2013 T-Mobile will eliminate the subsidy and charge full price for its phones. While there’s evidence to suggest that the carrier will in turn allow users to opt for cheaper service rates (thus saving money in the long run), the pill of a full-price phone may be hard for many to swallow.

Services from Daily Deals Will Become Scarce

In spite of lots of bad press, the daily deal isn’t dead yet. It will, however, continue to evolve in 2013. Too many competitors and not enough profits are forcing these sites to focus more on product deals, lead by Groupon Goods. It therefore may become difficult to find deals on services. If you’re accustomed to scoring cheap spa vouchers, for example, it may become harder to find such discounts next year, as daily deal sites will list fewer such offers and instead opt for tangible products — leaving you to pay full-price for your indulgences.

Tuition Goes Up as States Can’t Subsidize University Expenditures

While tuition costs are always on the rise, state schools in particular are feeling the pinch. As education costs continue to increase, many states will no longer be able to subsidize much of its students’ tuition costs. Meanwhile, student aid and grants aren’t rising commensurate to costs, which means university expenditures — more administrators, new dorms, and additional property — will get passed along to students. Tuition and fees for private universities aren’t increasing as much in 2013 as they have in recent years, but they are expected to rise for public 4-year colleges. Students can expect in-state tuition to increase 4.8% and fees to rise 3.7%, according to the College Board Advocacy & Policy Center.

iPhone 5 Accessories Will Be Costlier Than Previous Generations

Although there have been several iterations of the iPhone at this point, one thing had remained the same for several years: the dock connector. Thus, unlike cases that are outdated with the slightest change in form factor, iPhone dock accessories remained largely universal across new models. But the iPhone 5 features a radically different Lightning connector, resulting in a fleet of brand new accessories that have no prior-generation alternatives — which means premium prices. These higher prices debuted in late 2012, and they will continue in 2013 until manufacturers begin releasing updates to these items.

Shipping Costs on the Rise

While somewhat unsurprising, 2013 will see a 4.5% to 4.9% hike in shipping costs from both UPS and FedEx, the latter of which is slated to raise rates beginning January 7. Higher shipping costs may affect customers who predominately shop from “independent” sellers, like those found on eBay, etsy, and the like, but it may also have an impact on retailers that presently offer free shipping. Since merchants end up paying for the handling and delivery of orders that “ship free,” the increased UPS and FedEx rates may affect the frequency of, and threshold at which, online orders receive free shipping in 2013.

Does all this talk about rising prices get you down? Be sure to shop wisely by setting up a dealnews email alert for the specific products and categories that are important to you, so you know immediately when we see a good deal. You can also stay tuned for next week’s followup to this piece that details things that will be less expensive in 2013.



 

INFLATION IS WELL CONTAINED

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Posted on 12th December 2012 by Administrator in Economy |Politics |Social Issues

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I’m sure glad I don’t use gasoline or eat food, or I’d think I was already experiencing inflation. Thank God for Ben Bernanke and the BLS. Without them telling me inflation is well contained, I’d be really worried.

Is This The Chart Making Bernanke Nervous?

 
Tyler Durden's picture

Submitted by Tyler Durdenon 12/12/2012 10:35 -0500

With the Fed nervous to even let a little MEP ‘Twist’ expire (tightening), we can’t help but be a little nervous of their unbridled and passionate belief that if inflation should rear its ugly (or virtuous, perhaps, in their satanic eyes) head, they will be able to manage and tighten to control it. To wit, we note that one of the Fed’s most-watched indicators of inflation – the 5Y5Y forward inflation breakeven – has just reached its highest level in 17 months and is near its peak since the financial crisis lows in 2009 at over 3.08%. We have six little words for Bernanke, Yellen, et al. “Be Careful What You Wish For.” And by the way, the last few times, the 5Y5Y reached these levels marked a short-term top in the S&P 500.

17 month highs in inflation expectations…

 

These local peaks in inflation expectations have marked local highs in the S&P 500 also…

 

ABOUT THAT UNDER CONTROL INFLATION

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Posted on 16th October 2012 by Administrator in Economy |Politics |Social Issues

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Today’s CPI misinformation report dutifully reports that inflation has been virtually non-existent over the last 12 months. The charts below beg to differ. But Bernanke doesn’t think food, energy and copper are that important to the average schmuck. With annual increases ranging from 4% to 35% for things we need everyday, how could the CPI only show annual inflation of 2.0%? We know from prior posts that 24% of the CPI is made up of owners equivalent rent. I keep reading that rents are skyrocketing by 10% and home prices are increasing. So, why isn’t this being heavily reflected in the CPI? The drones at the BLS say owners equivalent rent is only up 2.1% in the last year. The people running this country have no problem lying out of both sides of their mouth, saying housing is recovering strongly but their is no inflation in housing or rent.

I’ll tell you why the numbers don’t make sense. Because the Federal Government and the drones at the BLS are lying about the true inflation figures. They use their little regression models to manipulate the data and report tame inflation, when anyone with half a brain that fills up their tank, pays their utility bills, or goes grocery shopping knows that inflation is running north of 5%. The BLS is actually reporting that your food costs have only gone up by 0.8% in the last year.

Even the commodities below that show modest year over year changes should worry you.

  • Heating oil is up 9% YTD and natural gas has surged 21% since May, just as we enter what is expected to be a colder than normal winter. Those senior citizens who are getting a $15 increase in their SS checks per month will just have to bundle up.
  • Unleaded gas is up 19% YTD and 2012 has seen the HIGHEST average price in the history of the U.S.
  • The huge increases in wheat, soybeans and corn due to the drought have resulted in some of the lowest inventories in history. The true impact of these price increases will really hit in 2013. Farmers have had to slaughter their cattle and hogs earlier to save on feed costs and this has resulted in meat prices temporarily declining. Prices for meat will soar next year as their is less supply. The other side effect will be unrest around the world, as food costs account for 50% of the budgets for poor people around the world.

The weightings in the CPI calculation are a joke. They have the balls to tell you that motor fuel only makes up 5% of your costs and food at home less than 9% of your costs. Let’s examine those assumptions. The median household income is $50,000. A family of four with both parents working would drive on average 12,000 miles per year for each of their two cars. That is 24,000 miles per year at 20 mpg equaling 1,200 gallons of gas used per year. At $3.80 per gallon, that would be an annual cost of $4,560. That would be 9.1% of your costs for a normal family. That is 80% more than the BLS weighting for motor fuel.

A normal family of four, based on my grocery expenditures of $150 to $200 per week, would spend $7,800 to $10,400 per year for food at home. Even using the low figure, it comes to 15% for a median income family. That is 67% higher than the BLS weighting. I would urge you to put your own circumstances into these equations and figure out if the BLS is full of shit. Thinking is essential to defeating the powers that be.

OIL

HEATING OIL

UNLEADED GAS

NATURAL GAS

COPPER

CORN

SOYBEANS

WHEAT

BEN BERNANKE SENTENCED MILLIONS TO DEATH

27 comments

Posted on 15th September 2012 by Administrator in Economy |Politics |Social Issues

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The headline for this post is not an exaggeration. Ben Bernanke has chosen to act on behalf of the ruling oligarchs on Wall Street and Washington DC by purposely creating inflation around the world. He’s done this solely to benefit the richest .01% in the world. There are 7 billion people on this planet and creating a stock market rally benefits about 100 million of them. The other 6.9 billion are left with higher prices for food, energy, and clothing. With billions barely living at subsistence level, these price increases will result in misery, starvation and ultimately revolutions. Ben Bernanke is single handedly responsible for the starvation of poor innocent people around the world. When revolutions and war break out, it will be his fault. In the U.S., as senior citizens earn 0% on their retirement savings, and the price of feeding themselves and keeping their homes heated becomes too overbearing, they will die in squalor – and their blood will be on Ben Bernanke’s hands. When his money printing policy ultimately results in an epic crash of the USD and our economic system, the country will erupt into civil war, with hundreds of thousands killed in the violence.

Last Thursday Ben Bernanke made a fateful choice to murder millions of people. I hope he sleeps well at night. 

Ben Wins – Who Loses?

Bruce Krasting's picture
Submitted by Bruce Krasting on 09/14/2012 17:37 -0400
The most significant market adjustment since Bernanke used the “Unlimited” word is not in stocks, bonds or PMs. It’s in inflation expectations. Have a look at this chart. Focus on the incredible spike in the past 24-hours.

 

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The sick part of this is that if Bernanke saw this graph, he would cry with tears of happiness. This is exactly what he was praying for. Ben thinks that inflation is a good thing. That it will cause demand to be pulled forward as people realize that things are going to cost more tomorrow than they do today.

I suspect Ben is right. Higher inflation expectations in the US will filter around the globe. Post the extraordinary steps Ben took yesterday, people will be stocking up on “stuff”. Things like rice, flour, cooking oil, soy, wheat and sugar. If you can eat it, buy it now. It will be more expensive in a month. While your at it, fill up the gas tank, the price is going up next week and every week for the next few months.

Ben doesn’t care about that stuff. He ignores this altogether. Maybe he’s right, after all, food and energy are really not so important to the 7Bn folks who happen to be passing through this decade, right?

Some day the history books will study this period of time and ponder how so many people gave up control of key elements in their lives without ever having a say in the outcome. How could one person have gotten so powerful? Somehow we have anointed Ben as the new God. An omnipotent decider that is nether elected or whose power is somehow checked. Don’t think for a minute that he’s one of those benevolent gods, he’s not.

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