First quarter GDP print was 1.2 percent. Even lower than Obama’s previous ten year average of 1.33 percent, which in itself is pathetic.
The retail apocalypse has arrived. There have been more failures already in 2017, than all of 2016. And if America consumption is slowing down that is big trouble also for China that must sell into this market. Also margins are thin to begin with in retail, but become non-existent as rents rise because of a real estate bubble. This is old hat for the U.S. Rents begin to squeeze profits and force downsizing decisions that eventually burst most American irrational euphoria.
When layoffs begin people cut back on discretionary spending, especially eating out.
Foot traffic at chain restaurants in March dropped 3.4% from a year ago. Menu prices couldn’t be increased enough to make up for it, and same-store sales fell 1.1%. The least bad region was the Western US, where sales inched up 1.2% year-over-year and traffic fell only 1.7%, according to TDn2K’s Restaurant Industry Snapshot. The worst was the NY-NJ Region, where sales plunged 4.6% and foot traffic 6.3%. This comes after a dismal February, when foot traffic had dropped 5% year-over-year, and same-store sales 3.7%.–Michael Snyder, April 23, 2017
This is a bad sign because job creation in bus-boys, watiters, and bartenders was a large component of Obama’s “miracle” job growth. Which leads us back to the miserable 138,000 jobs created for May. Even pathetic by the standards of the bogus Birth/Death model adjustments for job creation. So why with all this weakness will the Fed move in June?
Only one reason: the Federal Reserve is attempting to reload its gun with bullets that it can then use to cut rates in what looks to be a sure recession. Raise now, so it can have some talking points later. Truthfully, the Federal Reserve won’t matter because they’ll be firing blanks if Deutsche Bank does go under, and the profile of Deutshe Bank below mirrors that of Lehman Brothers in 2007 before the Great Recession. But we won’t be looking at a recession, it will be a Great Depression, because tax revenues are dropping for highly indebted municipalities.
We’re talking here about the likelihood of huge bond defaults. GAME OVER folks. Jacob Rothschild has called it, and has bought gold, and sold off his other positions. The Illuminati like to play this game of always telling the lemmings the truth as the game ends. I suppose to claim, “We warned you before the collapse.” Such prescience, when the composer of a score can hear a missed note from the first violinist that escapes most general listeners. Like my old teacher Harold Garfinkel used to marvel at how a party to a conversation might be able to pick out their utterance in a noisy assemblage like a cafeteria.