1 Year After The Falls – Part III: Spending
Posted by LeGianT on September 23, 2009
Opinion: With 70% of GDP is PCE (personal consumption expenditures) Uncle Sam’s health is tied to American’s spending; signal by retail sales which has been reported as good number. The more consumers get back to markets, the bigger uncle sam’s pocket. Retail Sales reflects the current state of the economy, meanwhile, serves as predictor of inflation. Thus, the high-jump figure would trigger the action of Fed in tightening monetary policy (hike rate and shrink money). Time of Crisis has past, now comes Era of Inflation (as a friend of Growth).