CONSUMPTION COULD FALL NEXT?

Walmart to close 269 stores
Kmart to close 27 stores
JC penny to close 7 stores
Macy t close 35 stores

For those who still believe the US will hike interest rates this year, think again. This is a glaring telltale sign that the consumption driven economy in the US is going to fall off the cliff. Earlier I posted that the middle class in the US has shrunk more than 10% compared to the period in 2008 and the next worth is unchanged at the same level of the late 1980s. There is no wealth creation among the middle class in the US despite QE1-3!

The GDP to monetary base is yet another sign that all is not well in the US. When monetary base is enlarged but there is little or no wealth creation, it tells a very damaging story about the state of the US economy.

The Baltic Index gave the first hint when it started towards record new lows.

Buckle up. This is going to be a very tough year.