Wednesday, July 15, 2015

Excellent News For Small Business

The hegemon and its false-economy regime is reeling, which means its players are in trouble.  Those who depend on that are feeling the effects, but this trio of stories is good news for the self-employment in the productive economy.  First come consumers who are not buying at retail as much as hoped.
 The fact that consumers, especially, had not experienced much if any recovery since the Great Recession more than five years ago already pushed toward an even more drastic downside likelihood. Combined, there are consumers whacked by no recovery and now again into what may be a mild recession, and all before the real and nasty stuff actually starts.
Now keep in mind this is those mal-credit based big box stores.  Small businesses are able to adjust better than the dinosaurs.

International trade is slowing in terms of dollars, but again that is big business, false economy unravelling.
Outside of monthly gains for petroleum components, negative signs sweep both the import and export columns with agricultural exports, at minus 1.5 percent in June, extending a deep run of declines. Year-on-year, agricultural export prices are down 16.7 percent in what is not good news for the nation’s farming sector. A look at finished goods categories shows no price strength anywhere with import prices for capital goods, at a year-on-year minus 1.7 percent, and export prices for consumer goods, at minus 1.9 percent, especially weak.
As I have demonstrated before, the drop is in Frankenfoods and other false economy, while specialty food, the bailiwick of small business is doing quite well.   Burger King NZ, owned by the smartest money people in the world (and heavily subsidized by the NZ taxpayers) is under water.  In a world of zero interest rates, it is having problems with financing.  No kidding?  It all gets back to malcredit, and deflation.

 The problems in China are also false economy events, but there is plenty of real economy deflation (what we badly need) going on as well.

Yes it is, which explains why, as we noted on Monday evening, commodity producers which levered up in anticipation of a perpetual bid from China are now buried under hundreds of billions in debt amid slumping prices and a global deflationary supply glut.
And while the country’s shifting economic model undercuts global trade, the sharp decline in Chinese stocks poses a threat to the country’s presumed new engine for growth: the consumer.

A void is being created as these false-economy monsters implode.  Since they are huge, even a little drop is massive opportunity for the small business.

But wait, you say, people do not go from buying McDonalds frankenfutter to the organic good food gourmet burgers.  Correct!  But enough do to support you and your family, small time to big time.

Get out of the dying false economy, and get into the growing creative economy.

Feel free to forward this by email to three of your friends.


Anonymous said...

And there is this:

When Capitalism Turns to Cannibalism

Meanwhile, in the real world, small business is in decline while corporate money floods the financial sector and Washington D.C.

The Washington Post published a study that found U.S. businesses are being destroyed faster than they’re being created. While not exactly a surprise, this is sobering evidence that small enterprise is in structural decline.