All.right there. Walmart says consumer spending dropped as soon as stimulus checks ran out. Oops No worries more free money is comingggggggggggggggg.....fed to print more stimulus. Walmart says consumer spending dropped as stimulus checks ran out PUBLISHED TUE, AUG 18 202010:43 AM EDT https://www.cnbc.com/2020/08/18/wal...nding-dropped-as-stimulus-checks-ran-out.html
Proof that many Americans are too poor to cover basic living expenses like in other third world countries.
"The economy" gets by/thrives... so long as the government/fed prints money and gives it to people to spend. DUH! Is that how America is going to "work" into the future? (Hell... I could enjoy steak and lobster twice a week if the government just gave me the money to buy it!) (Hint.... Has ANY society ever flourished with any kind of similar scheme? Hasn't "money printing" always been the hallmark of a society and country in decline, plunging into bankruptcy and destruction? Even currently... Turks are selling everything they own, including their homes, so they can take the proceeds to invest in gold.. in order to preserve SOMETHING and not lose EVERYTHING from "money-printing currency debasement" from their own government! Isn't America's government/Fed doing the same?)
You're seeing first hand what putting a large amount of outside money into the demand side of the economy can do in terms of lifting the most boats -- corporate and household. This money is needed right now to combat the rapid decrease in money velocity due to the pandemic. The same amount put primarily into the supply side would lift fewer boats but leave a few of those that it did on mountain tops. As soon as the pandemic shows signs of waning, and money starts flowing normally again, the Central Bank will withdraw residual excess money and replace it with Treasury liabilities. A better approach in the long run, however, would be to selectively, and temporarily, raise corporate and personal taxes before this becomes an imperative. It would seem that constant accumulation of treasury liabilities (bonds) would eventually result in bond servicing that forces the treasury-central-bank to increase net outside money flow into the economy beyond what can be justified by population and GDP growth. The result of this should be inflation. But until that distant day, the Central bank should be fully capable of preventing inflation, so long as its hands are not tied. The government can not simply buy back an excess of bonds using printed money -- once suggested by Donald Trump -- as that would exacerbate the problem. If the Treasury is called on to issue bonds without restraint, raising taxes could become an eventual imperative to control the amount of outside money that remains in circulation in the economy. All of this is, of course, something in addition to the normal credit cycle of inside money. Another longer range concern is not so much a total loss of reserve status for the U.S. dollar, as it is a concern over significant weakening of that status, with the dollar sharing more of it's reserve role with other currencies. It's something I am already worry about. It is already afoot. Watch for acceleration of this phenomenon. As the volume of international trade carried out in currencies other than the dollar increases, Central banks will be able decrease their inventories of dollar denominated assets. They will have less incentive to support the dollar vis-à-vis other exchange currencies. The purchasing power of the dollar should decline along with the demand for dollars, perhaps precipitously.
I'm still fuzzy on the whole inflation thing. Why is devaluing the dollar good for the average citizen? Why is reducing their purchasing power good for us all? And why does the Central Bank want this inflation?
It's not good. Inflation and currency destruction (aka "covert government theft from all citizens") are the covers for government deficit spending.... that's why the government and the Fed want it.
Uh, that's not proving anything you think it is. Bigger retailers with a good online influence are dominating the landscape now. All the virus did was speed up that process. What do you expect should happen to the stock of companies that are successful ? In before you bitch and complain about the markets being propped up by the best stocks. And around and around we go, with you bitching every step of the way about markets.
So the extra free $2400 worth of enhanced unemployment benefits for a few months didnt add any additional revenues for walmart or any other retailer.
Don't you understand that everything you are witnessing with huge equity gains is linked to the fed. Here are more facts. Mark Zandi, chief economist at Moody’s, says the federal government’s $600 payments have the biggest “economic bang for the buck” of any fiscal support so far, more so than stimulus checks and payroll tax cuts. In fact, if the payments are cut to $200-per-week through the end of the year (which is possible if states struggle to update their computer systems) then U.S. GDP would see a decline of 1.15%, another 1 million jobs would be lost and the unemployment rate would rise by 0.6%. Impact of Scaling Back the $600 Weekly Enhanced UI Benefit Enhanced UI Benefit Real GDP Decline (%) Job Loss (Mil) Unemployment Rate Increase (%) $0 1.27 1.13 0.71 $100 1.23 1.09 0.68 $200 1.15 0.99 0.62 $300 1.01 0.85 0.53 $400 0.83 0.66 0.41 $500 0.62 0.45 0.28 Table: Forbes Source: Moody's Analytics Get the data Created with Datawrapper https://www.forbes.com/sites/sergei...be-absolutely-devastating-for-us-economy/amp/