There is a looming US Retail implosion on the horizon and a complete re-think of the foundation of a 70% US Consumption Economy is urgently required. For thirty years analysts have predicted the demise of the US consumer. They were so consistently wrong that the mantra "Don't Bet Against the US Consumer" became a staple of investor wisdom, similar in reliability to "Don't Fight the Fed!".

The US Consumer as the engine of global growth has powering global credit creation and expansion as a result of the corresponding growth in US deficits . Now at 70% of the US economy, as compared to 50-55% for other developed economies and less than 35% for emerging economies, the question is no longer a matter of is it sustainable, but rather what will be the fallout now the inevitable has finally arrived?

It is clear the US consumer is tapped out a result of the US middle class being 'gutted' with job lose, low salaries, exploding healthcare & educations costs and pensions now an endangered species. However, our Monetary, Fiscal and Public Policies are only making matters worse.

Charles Hugh Smith spells out his concept of "DeGROWTH" and its key characteristics which challenges our consumer centric, materialistic notions for sustainable growth.

Whether you agree with Charles or not, it is important to see the road we are presently on is unsustainable and an urgent 're-think' is required.

Spending $Trillions the US does not have to foster growth through consumption, may be better spent on a more productive public-fiscal-monetary policy direction.

Video with Charles Hugh Smith & Gordon T Long

25 Minutes, 25 Slides