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As Mr. Bernstein explains, "the fall in consumer spending is proportionate to the decline in G.D.P".
So virtue is virtue after all, unless for some reason the Fed can't offset the fall in consumer spending.
But that owed more to a collapse in imports, caused by a 25% fall in consumer spending, than to reviving exports.
The company has been hit by a fall in consumer spending in several European countries because of the Continent's financial problems.
Meanwhile, in Europe, the eurozone retail sales figures for February come out at 10am and are expected to show a continued fall in consumer spending.
This clearly implies a lower future tax burden than $100 billion a year forever, and therefore implies a fall in consumer spending of less than $100 billion per year.
Similar(43)
Samuel Tombs at Capital Economics said a more general worry was that banks will be hammered by an economic slowdown and further sharp falls in consumer spending, forcing them to make higher bad debt provisions.
This means that an interest rate change translates rapidly into rises or falls in consumer spending, unlike in the Euro area or the US, allowing central banks there to ignore the housing market and focus on industry and manufacturing when setting interest rates.
According to the study, "[London] more than other markets in the report, is experiencing declining economic conditions similar to those in the U.S., including a drop in consumer spending, falling house prices, a rise in personal indebtedness, worries over home repossessions, and turmoil in the financial sector".
Alan Giles' HMV Group which has been hit by a decline in consumer spending blamed on falling property prices, growing economic uncertainty, growing competition from supermarkets, Internet retailers, and online music download services added it was now considering the revised proposal, adding that "a further announcement would be made in due course".
That's very surprising, given the fact that October is when the effects of the credit crunch and the sharp fall-off in consumer spending really took hold.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com