Retail Sales And Quantitative Easing

While the ninth straight month of rising retail sales numbers ‘plays’ well for the headlines, it does little to influence capital that knows the difference between nominal and real trends. Nominal prices are rising. Real or currency adjusted prices remain in a sharp down trend since 1998. In addition, year over year growth is beginning weaken in 2011. This pattern of injection and collapse (hemorrhage) can be seen in 2000, 2005, 2008, 2009, and 2010. Keep this reality in mind as the Fed and talking heads discuss withdrawal from quantitative easing by June. No chance.

Gold-Adjusted Retail Sales (RSGLDR) and YOY Change:


Headline: Dollar Edges Up After US Retail Sales Data

The dollar edged up against the euro and the Japanese yen on Wednesday after data showing that U.S. retail sales rose for the the ninth straight month in March.

The euro slipped slightly against the dollar to $1.4486, though recently had pared back most of those losses. Against the yen, the dollar rose to Y84.22 immediately after the retail sales data.

Source: online.wsj.com