1 thought on “Wholesales Sales Drop By Most Since March 2009; Relentless Inventory Accumulation Continues

  1. Well, it is pretty simple. As food, shelter, energy and medical costs continue to soar (they are not included in the inflation index), people have less money to spend on other things.
    As the economy becomes more unstable,(your article about paper gold illustrates a huge crack in this paper-based economy) people are less inclined to spend if they can postpone the purchase. The economists call it the Minimum Propensity to Consume. People will consume the minimum to get by, in case they don’t have a job next week.
    The worst thing about austerity is that once fear is set in, it can take decades to change people’s attitudes. That is one of the reasons the Great Depression lasted so long. Had we not had the explosive work that came from WW2, it would have lasted much longer. As it was, many people were afraid for years to come.
    Next step, wholesale purchases drop because storing inventory costs money and is difficult to move after setting too long.
    This just feeds the downward cycle our corrupt leaders are pushing us into. Look at the Euro. Instead of learning from it, they are using the Sequester, and other horrible methods to drive down our economy. They are too corrupt to care what that is doing to this country and our own people. They work for corporations, not us, thanks to Citizens United Ruling, it is official and legal.

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