Greece Mattered To Hedge Fund Algos – Retail Sales Starting To Plunge

Dr. Paul Craig Craig Roberts called it three days ago after if become obvious – via the IMF report on Greek debt – that the U.S. had started to flex its muscles in this situation:

Victoria Nuland has already paid a visit to the Greek prime minister and explained to him that he is neither to leave the EU or cozy up to the Russians or there will be consequences, polite language for overthrow or assassination. Indeed, the Greek prime minister probably knows this without need of a visit.  – Paul Craig Roberts, LINK

The financial implications of a Greek default are obvious once you consider the off-balance-sheet OTC derivatives side of the equation.  There’s no question that the biggest exposures to this have been incurred by Deutsche Bank (see the sudden firing of the CEO) and the big U.S. banks who dominate the OTC derivatives game.

But Dr. Roberts explains why Greece is important to the U.S. effort to keep NATO together. While the IMF functions as the cover-story for the financial terrorism the U.S. inflicts on the world (please read “Confessions Of An Economic Hit Man,” by John Perkins), NATO plays an even more important role for the U.S. in that it functions as a “front” for the mechanism by which the U.S. attempts to impose its military terrorism and political hegemony on the entire globe.

Meanwhile, the economic condition of the United States continues to deteriorate beneath the surface of the most reckless and wanton money printing and market intervention in the history of the world.

The latest data from Bank of America shows retail sales ex-autos are tanking, despite the absence of a polar vortex (source: Zerohedge – click to enlarge):

RetailSales

As you can see, there’s actually been a well-defined downtrend in retail sales ex-autos since early 2013.  And the latest data from BofA, based on credit card data, shows a curious drop in June. Note that credit card data is based on actual sales transactions, as opposed to the Census Bureau data – brown line – which is based on unreliable data estimates and mystical seasonal adjustments.

Please also note that most gasoline sales are done with credit cards.  With the price of gasoline higher in May and June, I have no doubt that the retail sales ex-auto and gasoline would likely be negative.

Several other manufacturing metrics continue to show that the real economy continues to tank.  In fact, Marketwatch of all propaganda sources has reported that the manufacturing sector is in a “technical recession” – LINK.  Moreover, the latest data in June showed real average hourly earnings had declined in May from April.  How is at all possible that the job market is “strong” if the price of labor falls?

Perhaps this is why Chicago Fed stooge, Charles Evans, was out yesterday whining for a delay in rate hikes until mid-2016 – LINK.  While Dr. Roberts predicted the resolution of the Greek “crisis” based on the “background” presence of the omnipotent United States Government, I have successfully forecast no rate hikes this year based on the omnipresence of rapidly deteriorating economic data.

The housing market is next…

3 thoughts on “Greece Mattered To Hedge Fund Algos – Retail Sales Starting To Plunge

  1. This is challenging times.
    Keep your nervs in control and your shortpositions in place.
    I guess we are witnessing the “last show” performed by the ponzi assholes.
    Just before everything breaks dowm you see these braindead “PPT spikes” in the market.
    Don´t get scared out of your position just stay firm the big move down is in the making.

    Do you agree Dave- what´s your current opinion on the AMZN ponzi?

    I will stick with my short because retail (internet included) must take a monsterhit in these times and their revenue must drop like a stone at the moment.

  2. Don’t forget the diversionary tactic method. With the recent Stock Mkt. debacle ,United Airlines , and the Wall Street Journal hiccups there very well may have been another event produced by the slight of hand. Now what could that be , hmmmmmm ????

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.