The BBC is reporting Further gloom for UK High Street as like-for-like high street sales for April to June were down 2.4% on a year previously.

According to Kevin Hawkins, British Retail Consortium director general, “There is an urgent need for an early cut in interest rates to prevent a continued decline” of consumer spending in the UK. In a shocking statement he went on to say “Retailers cannot rely on good weather to bring in customers”.

Oh no! All weather is bad weather. Gee, how unfortunate.

I disagree of course. The real urgent need is for people to understand what is happening and why. More importantly there is a genuine urgent need for everyone to stop depending on the Bank of England and the FED to bail out everyone with repeated interest rates cuts every time there is a problem.

Someone tell me please why there is a desperate need for consumers to spend more with savings rates so pathetic and debt levels so high. That said, I fully expect the BOE to fight the upcoming deflation tooth and nail. The FED will follow their path. By the way, I have news for the British Retail Consortium, the BOE, and the FED: When housing busts you will have lost the last little bit of control over the economy you once had. There is no where left to hide.

Perhaps at the end of the upcoming deflationary collapse, someone will have sense enough to abolish the FED and/or reinstate the gold standard. Don’t hold your breath waiting for it. If Japan is any indication, this is going to take a long, long time to play out. Let’s see who is next on the global race to ZIRP (zero interest rate policy). My bet is on the EU, in spite of any denial by the ECB.

Mike Shedlock /Mish/