Thursday, November 19, 2015

Forecast for holiday retail sales down as American’s spending most of their money on rent and Obamacare

We have already seen 3rd quarter retail numbers crash on Wall Street as companies like Macy’s, Fossil, and Nordstrom’s came in with double digit revenue declines, leading many analysts to forecast a bad holiday retail season leading up to Christmas and the end of the year.  But the reality is that the consumer is spending much less on things like apparel and other discretionary items because they are being bogged down with much higher costs in both rents and healthcare.
The Fed loves to discount inflationary numbers that are tied to consumers and the general economy, and instead prop up deflation within the sphere of Wall Street assets and commodities.  And if the real rate of inflation was correctly reported for the entire economy, it would not be languishing at the 2% number the Fed is using to justify their monetary policies, but along the lines of 8-10% per month in vital areas such as food, education, healthcare, and housing.

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