Thursday, November 20, 2008

The Yearly Xmas Admonition, Updated

Yes yes, this is the time Chaos will launch into a rant on the materialism and commercialism of Xmas, the early start, the slavish devotion to the market's demands, and the ridiculousness of citizens putting themselves into debt. None of this seems necessary at this particular moment in time, seeing as how the economy is collapsing faster than can be recorded, jobs are being shed at a breakneck pace, and companies (particularly retail) are busily filing for bankruptcy, or at least preparing for a very chilly January. At the risk of being redundant, then, here's the latest: the world is entering a global deflationary depression. Prices for assets will drop, because people will have no money to buy. Jobs will shrink, governments will go bust, promised pension benefits will not be paid, people will starve. Those with debt will be destitute, those with cash will make out somewhat better. In light of this, the celebration of the holidays should not be marked by increased consumption of anything, except perhaps food and beverages. Take Chaos' advice, get an early start on living with less, spend nothing on cheap trinkets this year.


Anonymous said...

Since when did you become a journalist and a know-it-all?

kris said...

Habits are hard to break as evidenced below:

1) US economy engages in well documented (widely and repeatedly reported) downslide

2) Consumers acknowledge this. Many express concern via talk radio, Internet, news media, amongst one another.

3) Specifically consumers mention concern in line at Black Friday. They acknowledge cut backs.

4) Black Friday sales up 3% from last year.

You could make the argument more were buying on Black Friday to save on discounts as opposed to buying later, but the more scenario is that shopping overall was up despite economic woes.

Consumers simply are not conditioned to be frugal.

Chaos said...

A further look at the Black Friday statistics reveals that: 1. shoppers concentrated on the loss leaders and didn't spend much on other items, leading to lack of margins among retailers, and 2. foot traffic dropped off considerably on Saturday and Sunday.

People can't spend what they don't have...

Kris said...

Good to hear. I think there are still some credit lines to be had, but I am happy to hear of better fiscal responsibility. Its a start.