Call (866) 878-2881 to learn more about our investment strategies.

Commentaries & market updates.

Americans consume more and produce less.

Americans consume more and produce less.

Yesterday’s strong numbers on retails sales and today’s weak data on industrial
production, which reveals a third consecutive month of falling output from
our nation’s factories, mines, and utilities, show that Americans continue
living well beyond their collective means. In addition, today’s increase
in consumer sentiment reflects the continued willingness of Americans to
go deeper into debt to purchase imported products. Increasing consumption
and decreasing production will result in further increases in American’s
enormous current account and merchandise trade deficits. How long will America’s
foreign creditors continue the greatest “vender financing” scheme
the world has ever seen? How long will America’s thrifty and productive trading
partners continue to extend credit to profligate, non-productive Americans?
How long before the world realizes that the de-industrialized American economy
is no longer capable of producing enough exportable consumer goods to pay
off its enormous external liabilities? I believe the answer to these questions
is “not much longer.” The American consumer, like the proverbial
Emperor, truly has no clothes (unless, of course he imports them). It will
not be long before the non-American producer finally acknowledges his nudity,
and the dollar bubble will finally burst. When that happens U.S. consumer
prices and interest rates will spiral upward, stock and real estate prices
will collapse, unemployment will soar, and the U.S. economy will enter a
prolonged recession as it enters a new era of savings, self-sacrifice and
under-consumptions, and begins a long and painful process of re-industrialization.

Sign up for our Free Reports & Market Updates.

You are now leaving europac.com

We are providing a link to the third party's website solely as a convenience to you, because we believe that website may provide useful content. We do not control the content on the third-party website; we do not guarantee any claims made on it; nor do we endorse the website, its sponsor, or any of the content, policies, activities, products or services offered on the website or by any advertiser on the site. We disclaim any responsibility for the website’s performance or interaction with your computer, its security and privacy policies and practices, and any consequences that may result from visiting it. The link is not intended to create an offer to sell, or a solicitation of an offer to buy or hold, any securities.

You will be redirected to
in 3 seconds...

Click the link above to continue or CANCEL