US, world headed for 25 year depression: Jim Rickards

US, world headed for 25 year depression: Jim Rickards

“When I use the phrase 25 year depression, it sounds extreme but it’s not. We had a 30 year depression in the United States from about 1870 to 1900…The Great Depression lasted from about 1929 to 1940. The U.S. is in a depression today.” Well, it's been in the works for

Read More

Canadian banking haven myth exposed

Canadian banking haven myth exposed

"One of the reasons that Canadians (and international commentators, other finance ministers and global financial institutions) buy this Canadian banking fairy tale is the way the government accounts for the money borrowed to support the banks." The sorry spectacle of Conservat

Read More

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your mortgage, loans, because interest rates set to rise

Get rid of your loans, guys and gals, because we are going into a high interest rate period. Very high. It will be the equivalent of going into the double digit interest rates we had in the 80s where many people threw their house keys at the bank and we had record numbers of ba

Read More

E-cigarettes save lives, money

E-cigarettes save lives, money

"We know that cigarettes have thousands of chemicals in them and we know that they are killing us. They have been for over a hundred years. So now, the e-cig industry comes along with only one or two chemicals in their mixture and people are freaking out over these as well. Whe

Read More

US inches closer to big bank charges

US inches closer to big bank charges

Federal prosecutors are nearing criminal charges against some of the world’s biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting

Read More

Canada’s home sales top predictions; why a real estate crash is inevitable

Canada’s home sales top predictions; why a real estate crash is inevitable

“The assurance of relatively low borrowing costs has likely given home buyers confidence while rising home values have kept new listings at a healthy level. Stable employment has provided some assurance to owners and buyers alike.” Our website is back after many months of

Read More

Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

Read More

Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

Read More

Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

Read More

World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

Read More

Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

Read More

US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

Read More

Content By: The Coming Depression Editorial Staff (dates cited below)
Copyright: include link to this article on top of reproduction if you use it.
Bookmark and Share
(No Ratings Yet)
Loading ... Loading ...

closed value city store

“Forecasters predicted a higher reading of 53.1. A reading above 90 means the economy is on solid footing. Above 100 signals strong growth.” — Ashley M. Heher, AP Retail Writer

Instead of a white Christmas — a term coined to the holiday season and day of Christmas when snow covers the ground — may be more of a dream than a reality as the consumer confidence dips to an “unexpected” level this time of year. While the ground may be covered in snow this holiday season — if weather permits — there will certaily be a lot of coal in peoples’ stockings as the lack of credit and money affects peoples’ abilities to spend on extravagant gifts they were once able to purchase for their children and loved ones. In fact, the only color people will probably be seeing if they keep their credit lifeline running — if they have one left — is the color red.

Indeed, CITI bank has already started canceling hundreds of thousands of peoples’ credit cards, sometimes for little reason and for people with good credit histories. Other banks, like Bank of America, has stated that it wants to “experiment” with credit card users who have perfect credit histories and with those who pay their credit card bills off every month. Why? Quite simply because they make no money off of people who run no interest rate charges.

The following report directly contradicts what many think tanks, reporting agencies, and retail consortiums are telling the public through newspaper releases that retail spending is higher than ever. “The latest official data shows the economy is still in recession, however the retail sector seems to be finding its feet again after a challenging year, and the outlook for November is encouraging,” said Andy Clarke, chairman of the CBI Distributive Trades Panel and chief operating officer of Asda.

This makes no sense because the retail sector directly reflects the average person’s ability to spend money and is an indicator in consumer confidence as the following report shows:

US consumer confidence takes hit
BBC NEWS

US consumer confidence fell sharply and unexpectedly in October as fears about future job prospects increasingly preyed upon Americans. The closely-watched Consumer Confidence Index from the Conference Board business organisation slipped to 47.7 from a revised 53.4 in September.

Analysts were expecting the index to be unchanged or even to rise slightly. Separately, a leading US index has found that house prices rose by more than expected in August.

Spending fears

The disappointing consumer confidence figures hit US shares, with the Dow Jones index down by 24 points, or 0.2%, at 9843.93 soon after the figures were released.

Rising unemployment played a “major role” in knocking confidence, the Conference Board said.

Figures released earlier this month showed that the US jobless rate rose to a fresh 26-year high in September of 9.8%

The figures also cast doubt on how strong Christmas holiday spending will be this year.

“Consumers remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays,” said Lynn Franco, research director at the Conference Board.

Consumer spending accounts for about 70% of overall economic activity in the US, so weak spending in the run up to Christmas could have serious implications for the US economy.

An index reading of 90 in the Confidence Index is the minimum to indicate a healthy economy.

Related posts:

  1. Consumer confidence nosedives in June; Oil Spill, China blamed“What we need are consistent job gains, not just a month or two,” said Richard DeKaser, chief economist at Woodley Park Research in Washington, whose confidence forecast was the lowest...
  2. Consumer spending is not indicative of recovering economy“While the sources for the supposed increases in U.S. consumer spending are murky at best, the amount of consumer spending in and of itself is not a determinant of whether...
  3. New York State to be broke by Christmas: Paterson“We’re going to run out of cash in four and a half weeks. We are going to run out of money. Unless we do something about it, (it will) threaten...
  4. September retail sales as slow as molassesRetail sales are an important economic indicator because consumer spending fuels a large part of first world economies. Inded, think of all persons and companies involved in the production, distribution...
  5. Major Economic Bloodletting Ahead: analysts“In commercial real estate and leveraged buyouts, the bloodletting is yet to come,” Soros said in a speech in Europe. These so-called economists — who are no better at predicting...
  6. Serious inflation ahead for consumers: Wal-mart“U.S. consumers face “serious” inflation in the months ahead for clothing, food and other products, the head of Wal-Mart’s U.S. operations warned Wednesday.” The world’s largest retailer is working with...

This entry was posted on Tuesday, October 27th, 2009 at 12:32 pm and is filed under Main Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.


Under the 'fair use' rule of copyright law, an author may make limited use of another author's work without asking permission. Fair use is based on the belief that the public is entitled to freely use portions of copyrighted materials for purposes of commentary and criticism. The fair use privilege is perhaps the most significant limitation on a copyright owner's exclusive rights. "