Imports are plummeting… should be a good thing… trade imbalance shrinks…. that lifts GDP calculations…. but the problem is…
…. Consumer Demand Has Collapsed.
The state of the U.S. economy is not as difficult as the ‘experts’ always claim. Simple business and checkbook economics always, always, tell you the future. You just have to be willing to accept things as they are, not as you would wish them to be. Let’s have an honest chat. We need it.
By Sundance ~ The Conservative Treehouse
Remember, it was November 2021, and no one was paying attention but retail hiring was negative. The month before the 2021 Christmas holiday, when historically businesses would be adding people to their payrolls to support the increase in shopping, and retail businesses did no hiring. In fact, 20,000 retail jobs were LOST the month before Christmas. Retail sales had plummeted. That was a major flare, no one paid attention. Everyone was distracted with the Supply Chain crisis.
Then the fourth quarter 2021 GDP result came in at 6.9%, massively higher than the visible reality on Main Street. The reasoning was identified as a major increase in the value of inventories. While the Biden administration liked the GDP figure, the existence of the unsold inventory was another major flare. Add unsold inventory units to the massive inflationary value of those units (+8%) and you quickly see the +6.9% was bad news, not good news. Major increases in the value of goods have no value unless people are purchasing them. It wasn’t happening. Again, no one (except us) was paying attention.