Well-known economist Schiff: Americans have been bankrupt

Tencent Securities News February, retail sales in the United States happened to make observers surprise decline。 So far, the data have been shrinking for three months in a row, which first appeared on this case, or in 2012。 Analysts had expected February retail sales figures will grow%, but the result is to reduce%。
CNBC reported that this is because American families buying fewer cars and other big-ticket items, meaning that the first quarter gross domestic product growth will slow down。
Why it is so?Well-known economist Schiff (Peter Schiff) gives one of the most straightforward answer in its latest webcast: American bankrupt。 This of course is another ominous sign。 Inventory data also show that people are not buying goods on the shelves of businesses。 Commerce Department data, business inventories grew 6% on the basis of December, January and an increase of%。 Of course, the February US jobs report much good to incredible taste, but Schiff stressed that it is meaningless。 "So, that millions of Americans get their paycheck, why not take a check to the retailer?President Trump in talking about employment opportunities, to talk about wages, talking about tax cuts。 So why retail sales will decline for three consecutive months?"The most straightforward explanation can only be bankrupt American。 Every year the second half of 2017, retail sales fell in December before suddenly was very hot indeed。 The problem is that, within the same period, the debt levels of Americans all the way up to record highs。 Last month, the New York Fed released the latest US household debt data, show the debt has grown to a staggering $ 13 trillion。
Yes, Americans have been spending money, but of which a large part is done by credit card。
Among the fourth quarter of 2017 alone, the total size of the US credit card debt would increase by $ 24 billion。
It seems that Americans seem to have run out of credit card elasticity。 This means that in the future one day, "credit card house" will collapse。 Schiff also remind you that the Atlanta Federal Reserve has again lowered its first-quarter gross domestic product growth is expected。
Remember earlier this year, it was talking about the possibility percent increase it?Now, the Atlanta Fed is expected to have lower%。 Schiff believes, from various known situation, the real growth rate in the first quarter is probably not even 1% of the。
The only way to play a decorative role only stock inventory will be included in the gross domestic product。 The problem is that inventory is increasing, which means that consumers do not buy the product manufacturers, which sooner or later to cut production to reduce inventories。 In other words, the first quarter growth rate even if it is relatively decent, in essence, is living beyond, ahead of overdraft rate in the second quarter。 "Of course, this also means that if we have data on the weak first quarter, then in the second quarter is likely to be weaker。
"Schiff also talked about the by-election in Pennsylvania, a trenchant question if everything really like Trump depicted so wonderful, why his people will defeat?"The president hopes his voters that everything is incomparably beautiful。 However, the latter is not very clear as。 They are bankrupt a year ago, but now they are still insolvent。 They have nothing to work before, now it is the same。 They are still not make much money。
They are still doing odd jobs。 Nothing changed for the better。
"So, Trump did in the end what the United States can once again do great things together?"People do not buy a lot of things, because they went bankrupt。 This time they did not vote Republican, not because they went bankrupt, but because Trump has still not make up the great United States of America again。 Of course, say that may be a bit too simple。
However, Trump do, in the end there is what makes America great again of it?Bigger budget deficit?In addition to this, what else?He reduced government revenue, it has increased government spending。 This allows the United States and then do great up?Before we vote for Trump for president, deficits do not already is a very serious problem yet?Is not it great again before the United States, because the United States before the government borrowing is not enough?"Schiff emphasized that the reason the United States is no longer great before, but now it did not change the fundamental reason is the government too large。
"The government stall too, the regulatory hand stretched too far。
Taxes are too high。 Bureaucracy is too serious。
All that has changed now。 "It is true that a certain amount of government Trump to regulatory reform, but only a tiny fraction compared to the needs and。 Congress passed the tax cut bill, but Schiff emphasized in the past, the tax cuts did not "cut government"。
Although the president claims to have made the United States great up again, but the reality is there is no substantial change。
Schiff's conclusion that Americans has gone bankrupt, and this is clearly reflected in the beginning of economic data which, if not selectively blind people can not see。
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