krispy kreme

KRISPY KREME LEADING ECONOMIC INDICATOR

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I know my dearly beloved minions are better than any other niche doomer group for understanding that the end is nigh and the time to panic was yesterday.  Yet, sometimes I question how truly aware we are of how close an economic contraction is, one that will make the Great Depression look rosy ( and only rivaled by the Gott Damn Sum Bitch Yankee occupation and induced famine of the southern colonial subjugated states ).  I blather on about Peak Oil-meh.  I bring up the collapsing PetroDollar-snore.  I mention the cheerily accepted “indefinite detention without charges” and I hear crickets.  Well, how about the Krispy Krème Leading Economic Indicator, hmmm?

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Unless you were from one of the aforementioned occupied colonies, you would probably never had heard of Krispy Kreme donuts if the corporate asswhore sellouts hadn’t started selling the cold and stale versions in grocery stores ( the whole shtick they were known for was donuts just made-hence far better than Dunkin Dog Nuts.  Putting them next to Little Debby’s Fresh From The Mexican Factory didn’t really make them a true KK donut.  It was like Schwinn bikes selling out their name to a Chinese junk manufacture, a one time brand pimping ).

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KK began its race to the grave along with Sears, K-Mart and Toyz R Us by going public and expanding rapidly.  At their peak they had about 400 stores, a smidge over 300 in the US domestic market.  Then the stock price tanked after “accounting irregularities” ( that is the polite way of saying they were lying crooks, screwed the stockholders and SOME of that was discovered.  Kind of like all the banks after 2007, but Krispy Kreme didn’t work for a central bank so they were screwed ).  They were bought out, and miraculously, actually recovered after a few years.  The secret?  Overseas expansion.

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I want you to focus on that last sentence.  We’ll return to that and it will be on the final exam.  After ten years, there are now a smidge UNDER 400 domestic US stores ( probably around a 5-7% decrease ) and around half again that many internationally.  Call it about 600.  That international store number went from 100 to 600 ( give or take a dozen or so ).  For the first sixty years the chain got up to maybe 150 or so stores.  They only went international during their too quick expansion.  But while their domestic numbers barely kept on to the debt fueled expansion stores, the numbers internationally exploded.

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The company was saved, not by closing most of its stores ( like the Sears, K-Marts, etc. ) but by chasing the customers.  Now, if you follow the US economy, you know there are a few urban cores that are doing great.  Sure, mainly because of the stock market bubble ( Seattle, Silicon Valley ), but otherwise because of what was labeled the Imperial Pump by the Druid Dude.  The cities such as Washington DC that steal resources from elsewhere grow and the exploited areas shrink.  Hollywood draws in the pay off for being the propaganda disseminator, for instance.  New York is where the bankers rub elbows and they didn’t like Bronx 1999 so they let the city have its share of the loot as long as they keep the bums out of the subways.

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Do you see some Krispy Kreme donut shops there?  Sure.  Do you see them everywhere, like Subway sandwiches ( I think I ate one of those a few years ago, gasping at the price tag and still rather hungry after eating the whole foot long I couldn’t taste any meat on )?  Even if they ONLY relocated to affluent areas, 400 isn’t enough to cover all the well to do areas.  Yet, they can do better by opening shops in Mexico City and Saudi Arabia?  What the hell is up with that?  Now, I know there isn’t just ONE thing causing this.  Our economic collapse is a perfect storm, as they usually are. 

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But what this tells me, primarily, is that taxes, banker controlled real estate bubbles, a worthless work force and rather importantly, shrinking disposable incomes even in affluent areas are probably behind this indicator.  Why is it more profitable to open in the capital of a supposed failed narco-state than it would be to open anywhere in the US?  I know what you’ll say-all the rich pricks congregate.  Sure, here in the US also.  I think we need to peek out from under our Hubris Blankee and take a better look around us.  It isn’t profitable to sell fresh food in the in theory most robust economy in the world.

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Bull spittle!  Horse apples!  The best economy?  Nee-gro, please!  The Chinese need us more than we need them?  My dimpled hemorrhoid blood weeping ass!  We don’t even allow our workers to net enough to buy fresh donuts, for humps sake.  If you listen to foreign travelers, all of our decrepit piece of crap fast food places that get horrid reviews for cleanliness and customer service are doing the exact opposite overseas, presenting better food, better service and operating room clean eating experiences.  Sure, some is cultural.  But how much is due to the fact the banks are squeezing one and all for the last few drops of blood, quadrupling business rents and medical costs to where contagious disease is untreated, housing costs so high there are more homeless crapping on the sidewalk? 

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The KK leading economic indicator tells me that we ourselves, supposedly alert and aware preppers, are blind to the Potemkin Village the US has become, still somewhat blind to the crash since, you know, we still have a job.  “It is a recession when your neighbor loses his job.  It is a depression when you lose your job” was never supposed to be literal.  It was a lesson in perception.  It wasn’t supposed to be a fat glittery unicorn you could hide behind to avoid reality.  Indicators are important, yo.  They give you warning.  I say, if KK can only profit anywhere else, our economy is far worse than we can see.

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