European shares closed down lower after weak U.S. data. The U.S. is adding to their many problems. The NY Times reported today that the EU needs to sell $1 trillion in bonds this year, that’s billions and billions of dollars in bonds every week just to replace debt and cover budget deficits. Lots of luck with that one.
If any big investor balks, fear could collapse the markets. The EU is looking to the European Central Bank to save them.
More than 60% of our exports go to Europe. Many investors and banks are tied to Europe’s success. If the EU goes down, the dollar might experience a temporary surge, but we will go down with them.
Back to the USA. CNBC reports that retail sales rose only 0.1%. The government estimated it at .3%. I’m so shocked that the government of absolute truth would over-estimate, they are usually so conservative. The government said that they estimated it at .3% because November was .2% and they thought Christmas shopping would up those numbers in December. People must have front loaded their shopping in November, because December was 0.1%.
If you take out autos, retail sales actually fell 0.2% in the first decline since May 2010.
Food and beverage store sales fell 0.2% in December. Gas sales dropped 1.6% last month. Core retail sales, which exclude autos, gas and building materials, dropped 0.1% in December.
Wow, yeah, the economy is really on an upwards trend. It really, really is. Those darn Republicans for not giving Obama credit and recognizing the growth.
The governments here and in the entire Western civilization are printing funny money.
“The world’s central banks are “printing money like gangbusters,” which could revive the threat of inflation , Pimco founder Bill Gross told CNBC Wednesday. There is potential for inflation and deflation. By putting hundreds of billions of currency into the market, the Central Banks can produce reflation. Read here for all that good news: CNBC
Listen to this about 4:4 minutes in –
The site Shadowstats reports inflation numbers using the methodologies of 1980, before the Great Moderation. One thing that has happened is the government has depressed reported inflation, changing the CPI (consumer price index) from a measure of the cost of living needed to maintain a CONSTANT STANDARD OF LIVING.
The CPI is the broadest measure of consumer price inflation for goods and services published by the Bureau of Truth (Bureau of Labor Statistics).
All I know is that everything is costing me more and excluding things like gas and food from the inflation numbers is kind of crazy since what the hay else is there if you can’t afford those? I may not know the answers but I know we can’t take four more years of Obama and we must try something new.