Recovery Winter: Industrial Production Drops, Wal-Mart Sees Disastrous Month

I would blame George W. Bush, but I have trouble seeing why his paintings are responsible for an economic collapse that began anew after Obama’s re-election.

Industrial production fell 0.1% due to weak manufacturing and mining. And Wal-Mart is wondering where all the customers went.

Wal-Mart Stores Inc. had the worst sales start to a month in seven years as payroll-tax increases hit shoppers already battling a slow economy, according to internal e-mails obtained by Bloomberg News.

“In case you haven’t seen a sales report these days, February MTD sales are a total disaster,” Jerry Murray, Wal- Mart’s vice president of finance and logistics, said in a Feb. 12 e-mail to other executives, referring to month-to-date sales. “The worst start to a month I have seen in my ~7 years with the company.”

Wal-Mart and discounters such as Family Dollar Stores Inc. are bracing for a rise in the payroll tax to take a bigger bite from the paychecks of shoppers already dealing with elevated unemployment.

Murray’s comments about February sales follow disappointing results from January, a month that Cameron Geiger, senior vice president of Wal-Mart U.S. Replenishment, said he was relieved to see end, according to a separate internal e-mail obtained by Bloomberg News.

“Have you ever had one of those weeks where your best- prepared plans weren’t good enough to accomplish everything you set out to do?” Geiger asked in a Feb. 1 e-mail to executives. “Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?”

The government has all their money. And it has all the customers too. But don’t worry, we’re in a recovery. That’s why even the media which keeps babbling incessantly about a recovery is… cutting jobs.

Thomson Reuters Corp., a provider of news and information services, declined the most in more than six months after the company predicted slow growth and narrowing profit margins in 2013, and announced plans to cut 2,500 jobs.

It’s another Obama miracle.

  • Flowerknife_us

    Obama's change is insufficient for the $ store.

  • Spikey1

    Will The Obama blame the previous administration?

    • Mary Sue

      probably. The hilarious part is many large cities such as New York do their best to forbid Wal-Mart (by denying permits to build "big box" stores and such) from within their city limits, so that whoever is next-cheapest is there is also showing bad returns, and people are getting even more ripped off. So that makes it even worse!

  • joe

    I'm sure if democrats look hard enough they'll find a white republican,business or way to blame Israel .

  • SoCalMike

    When you tell folks that each and every dollar the government spends, either taxes, borrowing or inflation, comes out of the pockets of people who don't work for the government, they generally begin this long convoluted rhetorical device and set of mental gymnastics that reminds me of Dorothy clicking her heels in the Wizard of Oz saying "We are in Kansas, we are…."

    • Jeff Bargholz

      SoCalMoron,

      way to beat off a straw man but workers in the private industry don't get their paychecks from other taxpayers, They produce the money that cycles round and round from government coffers to government parasites to government coffers to……..Get the picture?

      SoCal is a perfect example. What should be the most productive state in the union is the most bankrupt because of a corrupt Dem government in Sacramento and the bottomless pork barrel of SoCal and its blood sucking immigrant population (most of whom are leftists from other states.) There is a reason Northern CA is talking again about splitting off from the Southern parasites-including the Bay Area and the Capital, which are in Central CA.

  • Edward Cline

    The non-recovery and poor Wal-Mart showing are obviously a racist conspiracy by First and Second Amendment clingers, not to mention those bigoted Tea Partiers, who are always up to no good. Something ought to be done about them. Perhaps the government could be persuaded to round them all up and put them in FEMA "recovery" and "reeducation" camps — with guard towers, of course.

    • slider 96

      Hey man them camps are already built [under our noses by the sneaky Obama Construction Brigades ] , and I know they must be tracing IP's as we speak . Hope you Teabaggers like cheese sandwiches and Kool-Aide .

  • tagalog

    Next step: retailers drop their prices. That doesn't work as well as hoped. The Wal-Marts and Targets of the nation downsize or go out of business altogether along with businesses like Office Depot and others. Tens of thousands of workers lose their jobs. Production drops, more people lose their jobs.

    Fewer people eat out or go to the movies. Those industries suffer and drop some of their employees.

    All of those new unemployed apply for Unemployment Insurance. The government doesn't have the money to pay them, so it borrows from Red China. Or the government just goes belly up, people go without money, and we discover what it really means to ride the welfare state to the point of its collapse.

    God only knows what will happen after that.

    Obama just raised taxes on January 1, 2013. Part of his second inaugural speech dealt with what he perceives as the need to raise taxes more, just a month and a half later. And they want to raise the minimum wage. How are we going to pay for that?

    I'm not hearing what I would call serious talk about spending cuts by government.

    • Mary Sue

      next step: All the shoppers return to walmart. Only difference is, they're ALL paying for their goods with food stamps, including some former walmart employees.

  • Mary Sue

    You know things are bad if FREAKING WAL-MART is having trouble selling stuff!

    • slider 96

      IT'S THE END OF THE FREAKING WORLD !!!!!!!!! BWAAAAAAHAHA . PREPPERS GO UNDERGROUND , LOCK AND LOAD !!

    • Daniel Greenfield

      Wal-Mart's lefty turn toward being Green probably didn't help

      not many budget working class people buying organic

  • slider96

    Oh yea , things are terrible ! just terrible ! Walmart's sales are down ….it's the end of the wooooorld ! btw 82% of Walmart's employees are collecting some sort of assistance , from Medi-caid , Foodstamps and child day care & school breakfasts .

    • Jeff Bargholz

      slimer96;

      Like Mary Sue noted, Obama's lies about an economic recovery have been exposed by Walmart's sales disaster. Walmart's fiscal problem is is an excellent example of America's economy in microcosm, which is why this article was written.

      At least one third of Americans are reported to receive some form of federal assistance, and not all of them are Walmart employees.

      I guess nothing is axiomatic to an obamaton except the divinity of your Messiah.