Tuesday, December 23, 2014

Tis the season!



Reports keep coming out, giving Americans this false sense of hope.  With gas prices so low the little bit of loose change that the average person has in there pocket is making them feel overly confidant in their spending.  Christmas is here and we see the manipulation of advertizing hypnotizing individuals to buy, buy, and buy.  Many people in the U.S. live way beyond there means, so they spend credit, fiat that they do not have and probably never will.  Most people have acquired a mass amount of debt, so much so that the average citizen’s family debt is over 52,000 and the savings per family is under $8,000 those numbers don’t add up to a stronger economy, yet they keep spending what they don’t have. 
I say this because when I mention what a major impact Christmas has over the market, I just cannot stress how many positions one must understand to see just how this retail extravaganza affects the global economy.  Christmas is not just a major American holiday all of Europe and may other countries indulge is this free fall of debt, Americans are just primarily consumers so we see it on a larger scale.  While countries that Americans buy goods from seem to be doing better than average during this consumer holiday. For instance, Sweden that we buy jewelry and watches from and many high end items i.e. Rolex and Omega, not to mention the pharmaceutical companies that benefit from the stress of Christmas.  So many industrial companies are depending on this season and rely on the holidays for a majority of their revenue. Like China, where we get everything from, all benefit from sales for the last half of the year.
During this festive gut-wrenching holiday that is driven by guilt and a need to spend, and credit cards to be used at over capacity.  The need to buy presents for everyone you know is totally justified and expected before paying off your house or a your car or even your electricity bills, during this holiday all this spending seems like a reasonable idea and puts families in even more debt and panic heading into the new year.  When I talk about debt, I am not just talking about individuals, I want to include huge corporations and government as well. We have acquired massive debt and the numbers are growing yet all these reports are trying to convince people that we are headed in the right direction. With Christmas here we don’t need distractions like ISIS or Ebola to distract us and the news is all puppies and babies, in fact they avoid any negativity during the holidays. They want to keep us blind to the truth, out of sight out of mind.  
During the depressions in the past we have seen it first hand people lined up for aid and food, out in the streets begging for any help at all.  Now we are sheltered from it, we have a food stamp card, government assistance personnel, whole offices dedicated to housing, disability and welfare. Free government money is the new normal. 
An estimated 45 plus of Americans are on food stamps, that is about 15 percent of the population and I believe it is way more, but that is just what they report, more like 30 percent. Our children are growing up used to and accustomed to aid, and government assistance programs, they don’t see why it is a problem to be on assistance and don’t care about it at all. Most young women in America, single mothers depend and rely on that government check and while some do benefit from the situation, go to school and see it all as a temporary time and assistance in they’re life. Others make this a life choice and take full advantage of the help, just take what they can and are comfortable living off the government. While we stay blind to the numbers and are persuaded by the reports and the FED’s false confidence, energy manipulation and media. We sit back and spend just to enjoy a day with family and friends. Tis the season to sit back save and trade, take it from me, it may make your New Year a whole lot better. -Adrienne