Mish's Global Economic Trend Analysis

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Apparel Sales by Price and Volume Provide Interesting Viewpoint Posted: 19 May 2012 09:11 AM PDT Reader Tim Wallace provides an interesting chart of apparel sales in the US by price and by unit volume. In this case, volume is likely the more telling statistic. click on chart for sharper image Tim writes ... Hi Mish As always, I am watching imports, especially with fascination the apparel imports. In the attached graph we see that dollars and units run mostly in slope lock-step until the crash of apparel demand in 2009. In 2010 we see a significant "recovery". One thing about apparel is it does wear out, so a year like 2009 will cause pent-up demand in a following year. Price did not recover as much however. 2011 and the 12 month historical rolling numbers ended in March of 2012 (government data lags two months) is more interesting. Dollar amounts continue to "recover" but the units measure has turned well downward again, in fact off 6% from 2010. Looking at the monthly data from this time last year we see a continued degradation of the units amount every month, while the dollars amount trends up. This is in effect apparel inflation, caused partially by raw materials. Cotton has been replaced in a significant percentage of products, stripping out demand and lowering that cost. China lost some market share due to labor cost competition with Vietnam. However, China still dominates with 41.2% of market share, Vietnam second at 8.5%, then Bangladesh at 6.4% and Indonesia at 5.4%. Thus 61.5% of all apparel imports come from only 4 countries. Regards, Tim Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Italy Deploys 20,000 Law Enforcement Officers to Protect Individuals and Sensitive Sites; Anecdotes From Italy via Canada: Taxed Out of House and Home Posted: 19 May 2012 01:25 AM PDT Italy Deploys 20,000 Law Enforcement Officers to Protect Individuals and Sensitive Sites The Atlanta Journal Constitution reports Italy deploys 20,000 to protect sensitive targets Italy increased security Thursday at 14,000 sites, and assigned bodyguards to protect 550 individuals after a nuclear energy company official was shot and letter bombs directed to the tax collection agency. Under the enhanced measures, Interior Minister Anna Maria Cancellieri deployed 20,000 law enforcement officers to protect individuals and sensitive sites. In addition, 4,200 military personnel already assigned throughout Italy will be redeployed according to new priorities. Authorities will also increase intelligence to "neutralize" the risk of subversive actions "that can be nourished in moments of tension," the statement added. Taxed Out of House and Home In response to Tax Collection Violence in Italy: Mail Bombs in Rome, Police Clashes in Naples, Molotov Cocktails in Livorno I received an email from Frank who lives in Canada but owns property in Italy writes ... Hello Mish Trust me, it really is that bad. I have a condo on the Adriatic in Italy, and lots of family still there. The local municipal property tax, called Imposta Comunale Immobili (ICI), is paid by anyone who owns property or land, whether they are a resident or not. Recently, property taxes have gone up fast. Property is now being reassessed at the "real" value instead of the "official" (wink) value. TV shows highlight the plight of elderly who have had to move out of their own homes into nursing homes because they could not pay property taxes. My uncle has 6 apartments which he's owned for many years. He and his children live in 4 and he collects rent on the other 2 to live on. He is getting hammered. He lived and worked in Canada most of his life but returned to Italy because his daughter married an Italian. Now he desperately wants to return to Canada, but it's impossible to sell now. Frank G. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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