You may discover that the below record is, as President Obama might possibly propose, once again “peddling fiction.”
But for the average American, we can guarantee you that the economic recession is a extremely legitimate situation.
Walmart, which built its billions serving low to middle income Americans, is struggling and it is because their core customer base is too broke to shop. As it has been pointed out, they are just one of numerous domestic retailers laying off workers in the middle of falling store sales. But they are definitely the biggest and baddest of the retailers out there. If they are having issues it should be a big red flag signal that regardless of the Nazi News Media telling us not to panic because the economy is still in good shape, we are in for some difficult times ahead – the truth is, the difficult times are a reality right here and now.
Walmart’s customers are too broke to shop
Walmart is facing a “perfect storm” that’s hurting its sales growth, according to Moody’s.
The company’s core customers are struggling with flat income levels, and savings from lower fuel prices aren’t translating into more retail spending, Moody’s vice president, Charles O’Shea, wrote in a note to clients on Wednesday.
The business is also under pressure from deflation in key product categories, such as food, and the effects of the strong dollar abroad.
“Walmart is facing an almost perfect storm when it comes to top-line growth,” O’Shea wrote. “Until the health of the lower-to-middle-income consumer improves, Walmart will continue to face macroeconomic headwinds in the US.”
Walmart said last month that it’s expecting virtually no sales growth in the coming fiscal year.
Source: Business Insider via Yahoo
The whole of the growth tale being displayed to the American public is being revealed, just about daily, for the charade it really is.
Stock markets might have fairly recently rocketed back up with many an analyst indicating they are back on track to go to new highs. But when you think about that one of the lowest price retailers in the country can’t increase or even maintain their sales, then it hints that something has to give.
As Brandon Smith cautioned this week, we are experiencing the most unstable economic conditions attainable and coming central bank action (or inaction) could well lead to another leg down in global stock markets.
No matter of what stock markets do going forward, to the average person attempting to put food and clothing in their Walmart grocery basket it doesn’t really make a difference whether the indexes are lighting up red or green.
For them, the collapse isn’t some future occurrence.
It is today.