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Beginnings of Health or Continued Illness

February 13, 2013 – 6:09 pm

financalcrisisGlobalHealth47Economic data points this week are few and that which has and is going to be reported means little. Retail sales were up .2% for January which was better than the .1% expected but not nearly as good as the .5% in December. This fall was not due to the holiday season but more clearly a result of the tax increases at the end of the year. The payroll tax increases hit not the rich but the average consumer and that hurt our economy.

Import prices were up mostly due to oil imports and business inventory stayed steady month over month.

Economic statistics that come out constantly is like looking at blood samples to judge economic health. They are taken all the time and will tell you the vitality of the system. When you constrict the blood flow things start to go wrong and restriction is accomplished by raising taxes or paying insanely high energy costs. What we are seeing in the samples so far this year is more of the same as last year. The economic patient is recovering but sickness lingers. That sickness is in high unemployment, high debt and slow growth. Those ills could persist for a very long time and as long as they do the FED will keep pushing life giving blood in the form of cash into the system. he problem at some point is that new blood may not work. The patient needs to recover and stand on its own.

Good Trading
Steve Peasley

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