USA Purchase power weaker and weaker . Stagflation further confirmed .

The cost of living indicator in February has beaten all time records overcoming latest record of July 2008 .

This together with salary deterioration plus after bubble overall consumer debt increase , is eroding the purchase capacity of americans paving the way for furtther deep housing deflation .

The sales of existing houses have experienced a further 10 % drop .

All this confirms clear signs of stagflation where demand is simply deleted by out-of-control costs , due to the low added value in USA products and services . This is nothing to do with dóllar rate , but with the outdated technologic innovation and subsequent loss of competitiveness deriving from the lack of long term investments in processes and latest technologies due to lack of investor stimulus in these areas .


Published in: on marzo 21, 2011 at 4:29 pm  Deja un comentario  

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