Chillin' out till it needs to be funded
We aren’t hard of hearing for shouting but except for Blinder (Allen, writes for the WSJ) a lot of the new crop on Capitol Hill might need these hearing aids to cut out partisan noise from their reading of the economic data.
US retail sales jumped in October to 1.2% despite concerns from most forecasters that the uptick has lasted too hogh, too long with estimate ranges staying as low as 0.2% and ne’er above 1%. A;lso jobless claims have been down consistently since the week QE2 was announced as industry eagerly anticipated that QE should be off the blocks before ramping its rolls for the new decade. Of course this may be a little vanilla in being sweet to Bernanke but here is where Blinder gets a slap quote..
One current catchphrase is “job-killing spending.” Hmmm. How, exactly, does more spending kill jobs when there is idle capacity and no threat of rising interest rates? Stumped? So am I.
Of course, this rather makes the confident ( arrogant) Republican closer to making an ass of himself as he steps up to badger the new President’s remaining term but more importantly, and we are stricly apolitical..this 1.2% growth means we need to be sure we have a strategy for the big US consumer spending market in this global lifestyle consumption boom
Of course even as the Bucyrus deal gets a clean slate there has been a cost to growing the consumption economy with new orders lagging and price realisations dropping in the Empire State Index for November as do manufacturing PMIs worldwide. Still ahead of a boom August and a surprisingly buoyant September the October numbers point to a mega holiday season and a continuing spendthrift American consumer with purse strings firmly in place not denying joys to Walmarts, Macys and others preparing days in advance for the inevitable Black Friday check of the nations Economy.
The”largest gain in seven months” underlines that the accretions to the $10 Trillion consumer Economy of the US and the retail lifestyle sector gains are permanent for businesses to peg for future plans even as ASia and Africa enjoy the resurgence in Mining not manufacturing kind of foreign investment deals
Ford of course sobered up the deal reporting a 25% drop in sales in 19 key markets ( in Europe) but domestic consumption was largely driven by autos as ex autos the retail growth was a muted 0.4% Motor Vehicles thus jumped 5% in October and even Building materials and gardening Eqpt rose healthily to lay the foreclosure phantom to rest sooner than later as consumers move on.