The brick and mortar continued decline. [Part 2]
SourceMore of the same unfortunately with no end in sight... The United States is on current pace to break the previously store closings in a single year statistic by over 20%. Commercial and industrial loan growth (key economic indicator) has been declining, you have the first quarter GDP number coming in at 1.2% which was well below expectations to the Main stream crowd but just a manipulated number to those in the know. Other Key factors that are alarming are the U.S manufacturing PMI has fallen to an 8 month low while General Motors just announced that they will be laying off more of U.S worker's from it's domestic factories.
On top of the private sector, the fed itself has it's own data and issues to combat in the public arena. The U.S dollar now has hit a 8 month low just as the manufacturing rate had hit the same. The latest U.S jobs report numbers that came out give a good example on why the dollar and other indicators are so weak. The expectation was 185,000 jobs and what we ending up with in fact was only 138,000. The March and April number's were also revised downward by 66,000 to add insult to injury.
The coming Fed meeting there is a good percentage chance that the reserve will raise the rates. Some speculate that with the data being as weak as it is the fed will hold and not raise. I believe they have no choice but to raising because with the data being extremely poor if they hold on their decision that will just accelerate the decline in confidence, which in turn will effect the markets in a very negative matter. This is something the Fed has no plans or wants the reality of dealing with, YET. Micheal Kors stated they are closing 100 stores and Radio Shack is closing 1,000 stores this week alone. We are in a very fragile global economy currently and the next coming months will show and prove alot to where it is heading.
FOLLOW/
As we can see by the news and the numbers, unregulated capitalism is a self destructive system that is predatory by it's nature, like a cancer, and eventually eats it's self as it kills it's hosts. The greed at the top destroys the market that is necessary for it's survival.
Ship the jobs overseas for better profit. No jobs, no money to spend on stuff. No spending on stuff, no demand for goods. No demand for goods, profits disappear, businesses close, factories close, companies die.
The corporations do this to themselves, and then blame it on us.
Yes, if we had leaders with morals and the people's whom they work for best interest at heart it would be a fantastic system. Unfortunately its run by the devil and his minions so no chance.