On just one day the confirmation of the “New Normal” era - of constrictions, restrictions, limitations, loss and diminution of services and opportunities and of dropping and disappearing incomes that will contribute to a general sense of the reduced ‘general welfare and happiness,’ that had reigned supreme in these United States for the last 60 years - is made certain in today's very telling articles and news. The "New Normal" is covered extensively in the inaugural issue of our Market Review and just briefly on our "New Normal" web page.
We identify the “Great Divide” as a retail 'game changer' and 'choke point' for all retail businesses in America. The "Great Divide" is first referenced in the “Prologue to the “Bond Bubble” on our home page; more detail is covered in the “New Normal” page; we cover it in very directly in our Blogs of November 17th and 19th and much more extensively in our Market Review.
Our proposal, that the "Great Divide" is now a permanent phenomenon in the United States and that it WILL grow much wider over successive years, is made all the more probable by the VERY positive news today from Dollar General. All in one day they reported a huge increase in profits, a generous stock repurchase plan and plans for 600 new stores, while their peers are doing equally well in the "New Cheap Space" (NCS) retail environment and while very nearly all their mid-range and "Value" competitors are suffering eroding aggregate sales levels, all of which trends will continue and accelerate in the future!
Our proposal, that the "Great Divide" is now a permanent phenomenon in the United States and that it WILL grow much wider over successive years, is made all the more probable by the VERY positive news today from Dollar General. All in one day they reported a huge increase in profits, a generous stock repurchase plan and plans for 600 new stores, while their peers are doing equally well in the "New Cheap Space" (NCS) retail environment and while very nearly all their mid-range and "Value" competitors are suffering eroding aggregate sales levels, all of which trends will continue and accelerate in the future!
People are increasingly forced to ‘shop down.’
The following article, says it all:
Rich-Poor Divide Widens In Developed World
Bloomberg; By Mark Deen - Dec 5, 2011 5:00 AM ET
“The gap between rich and poor is widening across most developed economies as skilled workers reap more rewards and top executives and bankers benefit from a global job market, the Organization for Economic Cooperation and Development said.
The average income of the richest tenth of the population is now about nine times that of the poorest tenth, the Paris- based OECD said today in a report. The gap has increased about 10 percent since the mid 1980s.
Mexico, the U.S., Israel and the U.K. are among the countries with the biggest divide between rich and poor
“The social contract is starting to unravel in many countries,” OECD Secretary-General Angel Gurria said in a statement. “This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that the greater inequality fosters greater social mobility.”
And here we have the proof that the erosion of services predicted on our “New Normal” page is now in full force. It is no longer conjecture. We will now witness a constant erosion of services that we are all accustomed to as a birthright of our being Americans. The continual erosion of what was formally taken for granted will lead to greater dissatisfaction, angst and a sense of irritability that will gradually suffuse and infect all layers of society.
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U.S. Postal Service Seeks to Slow Mail Delivery
Bloomberg; By Angela Greiling Keane - Dec 5, 2011 2:13 PM ET
“The U.S. Postal Service, which is trying to cut $20 billion in operating costs by 2015, is seeking to slow mail delivery to help save $2.1 billion a year. . . (asks to) relax delivery standards for first-class mail, which includes letters and bills…Ending next-day mail delivery would reduce the number of mail-processing plants the service needs, …
The Postal Service said in September it was considering loosening delivery standards and closing 252, or more than half, of its mail-processing plants. The agency said last month it predicts a $14.1 billion loss in 2012 as mail volume continues to drop.
…The service, which is seeking permission from Congress to fire workers, close post offices more easily and end Saturday mail delivery, has closed 26 mail processing plants since September and now has 461, Williams said.
That’s a 32 percent decrease from 2006 when the service had 673 mail processing facilities. …”
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