Sales at U.S. retailers unexpectedly fell in December as consumer spent less on vehicles and an array of other goods during the holiday shopping month, data showed on Thursday, raising concerns about the durability of the economy's recovery.
CIGAs and informed readers have long known that shakiness of the economic recovery is not revealed solely by tepid retail sales numbers. Gold adjusted retail sales have been falling steadily since 2001. After a brief respite from early 2004 to mid 2005, the downtrend re-accelerated with greater intensity. Clearly, there has been minimal "real" retail sales growth since 2001. Infinite quantitative easing (QE), or currency devaluation, will always boost nominal (US dollar) growth. This is the inflation illusion. When the currency effect is removed, the growth disappears.
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Source: finance.yahoo.com
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