This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Black Friday Mirage Hides U.S. Retail Depression

Even though U.S. shoppers were lethargic on Black Friday itself (when supposedly the best of the bargains are available); we're led to believe they went on a "spending" rampage after Black Friday. But here we see the propaganda machine moving the goal posts. "Total spending" is not the same thing as "retail sales."

Going to a movie, or a bar, or a restaurant over the course of a long week-end is not "retail sales." Clearly the propaganda machine is now pumping "total spending over the Black Friday weekend" to hide another Black Friday Massacre for U.S. retailers. As noted earlier, with actual retail sales flat (at best), this means that U.S. retailers sold between 10% and 20% less goods than one year ago. But that's only the latest in a series of horrendous numbers.

In October, U.S. retail sales fell 0.3% that month alone -- and without accounting for inflation. Translate that into an annualized figure, adjust for inflation and in the month prior to Black Friday U.S. retail sales were plummeting lower at an annualized rate somewhere between 13.6% and 23.6%.

Go a little further back and the numbers are even worse. Official retail sales fell for three consecutive months from April through June, again without adjusting for inflation. That's an entire quarter of actual U.S. retail sales plummeting downward at a double-digit (annual) rate.

Meanwhile, in the surreal world of U.S. economic statistics; the propaganda machine itself regularly informs us that consumption is directly/indirectly responsible for 80% of U.S. GDP. With retail sales (the largest component of consumption) plummeting downward at a double-digit rate; it's a mathematical impossibility for the U.S. economy to be generating positive GDP growth.

Of course since official U.S. GDP calculations are deflated with the same fantasy numbers the U.S. government uses in its CPI calculation; U.S. GDP statistics are equally as accurate as U.S. inflation numbers -- which is to say that they have no connection to the real world.

It must be noted that the collapse in the quantity of goods being sold by U.S. retailers is only one component of this U.S. retail depression. With wholesale costs soaring, and with U.S. consumers never having so little disposable income, profit margins for most retailers are being steadily squeezed.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs