Teeny-Weeny Mistakes

I get real tired of "Core" readings in everything anymore, basically for the erratic skew of ordinary statistical measures, plus their inapplicability in successive readings. Eliminating high Rollers also explains very little without comparison of the variation with and without the eliminations. This all said, Core Retail sales dropped 0.7% since the end of February, and volume did not increase in Energy–solely a Price increase. I will have to find sometime later if the volume of Food sales increased, or if again it was simply an unmeasured increase in Prices. SpendingPulse also ignores the vital area of building supplies, the arena where volume sales determines growth of real Household Income with the heaviest capitalization (you have to spend decisively more to gain increases in Labor Income). One may ask why go into such detail, but such elements are necessary to establish a comprehensive judgement of Household Expenditure patterns; in which this information implies around a 4% reduction in Spot Consumption, mainly hidden by massive focus Price increases in the Maintenance Expenditures.

China is having a worse Inflationary cycle than Americans, coupled with a 1% reduction in the Trade Surplus. It would make a whale of a difference if this Drop was in Western purchases, though it seems obvious that it is increased Energy purchases by China in a rapidly inflating Energy market. China faces a 22% increase in Food prices, including a very expensive growth in Rice prices, while urban Chinese expect to eat Pork at least twice a Week. Disruption of either Food schedule has led to Food Riots in the Chinese Past, with no indication of any reduction of the Sentiment with the massive introduction of rural Poor to the urban matrix. Producer prices are going up by 8% per month, hampering the Government’s efforts to bring down the Pork Price increases; an effort necessary if Pork prices are to be forestalled from the new prices being kept as the the Price Trend-setter for all Chinese prices some two Quarters hence. The debacle will have Chinese Economists grinding their teeth, especially as Chinese Exports have little elasticity leeway to raise Product prices.

"Look, Maw, those damned Kids don’t know how to manage their (401)k Funds. When are they going to learn that they have to spend 20 hrs. per Week evaluating good potential Investments. Listen to them complain that they don’t have the time–between raising children and working a 50-hour Workweek. Hell’s fire, We used to let the kids run wild, and quit at 5 p.m. every Friday no matter what, so We didn’t miss the Saturday Night dance. Course, We done told the Bankers to give Us a good rate of Return on Our Savings, and let them worry about making the Investments!" Corporate leadership in Political positions often complain that Citizens fail to take advantage of all the Investment opportunities they are granted; I think it is a Question of replacing all those $400k/year CPAs who are just not doing a competent job of handling Worker portfolios. lgl