Consumer Spending Falls Off Of A Cliff In Early January of 2011
We have been highly critical on here of politicians attempting to restart a failed economic ideology, and as part of that, of asking consumers to spend their way out of this environment. The desire to keep this economic model going is built completely on fraud and betrayal of the American people.
That said, way too many people look at revolving consumer debt as an indication of future economic performance. If you think the health of the consumer is a valid economic indicator of what will return this economy to health, you are going to miscalculate this recovery as every idiot on Wall Street has. As we have said on here numerous times over the years, total trade in the American economy is nearly 4x that of consumption and GDP is not an appropriate measure of economic health. I haven't told you how I measure that because it is a secret that apparently no one in economics understands. :) But it is based on generally available data.
What this implosion is really pointing to is that the most wealthy Americans are now pulling in spending. Everyone else is broke. In the neoliberal world of economic neofeudalism, the top 5% of Americans represent the vast majority of consumer spending. One surely can’t expect this dynamic to be sustainable. The virus of economic chaos is instead moving up the wealth chain and eating into the pockets of even the very wealthy.
Remember, as we have written countless times, this is the cycle where the true believers, or the investor class, are crucified for their ego’s belief that they rose to where they were because of intelligence and ability. Hahahahahahahahaha. That is also the joke of the day.
Remember, Wall Street is more bullish to start this year than at any time since right before the last collapse. The idiots are right on time.
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