Financial Balance of Terror

Sometimes you wonder if Larry Summers is reading the blogs. The catch phrase Financial Balance of Terror has been coined by none other than 1990's Financial Terror Architect, Obama economic adviser Larry Summers!

President Barack Obama and fellow Group of 20 leaders are trying to end what Obama adviser Lawrence Summers has called the “financial balance of terror.”

World leaders, meeting in Pittsburgh last week, adopted a framework for more durable economic growth as they sought to prevent a replay of the worst crisis since the Great Depression. They also acknowledged the growing clout of China and other emerging economies by giving them a bigger voice in decision- making.

Boom Go the Boomers

Business Week has an interesting article on baby boomers.

While we have already questioned the statistics on the jump in savings rate, the story shows just how focused policy makers are on Americans being consumers instead of producers.

Some statistics claimed in the article:

Black Friday Shopping Data

Amazing but true, Black Friday hauled in 3% more than last year.

Americans spent $10.6 Billion dollars in one single day, shoppin'.

Last year it was $10.3 billion.

My only guess is that credit cards are still not at their limits.

Amazing isn't it? The economy on the skids and in one single day $10.6 billion dollars is spent.

Americans Stop Shoppin' - Retail Sales Slide

Now who thinks America is backwards and stuck on stupid? The focus is always on Americans shopping instead of Americans producing. Why doesn't our trade deficit or the shrinking middle class cause such an uproar?

The focus on Americans as simply consumers is part of the problem.

Bloomberg on Retail Sales:

Consumer purchases fell 1.2 percent in September, extending the decline to three straight months, the first time that's happened since comparable records began in 1992, Commerce Department figures showed today. In another sign of weakening demand, prices paid to U.S. producers fell last month on lower fuel costs

Here's a disconnect: