Today's Monthly Wholesale Trade report from the Census Bureau covering July was the latest in a wave of disappointing reports on business activity this year. Wholesale inventories remained very high, while sales turned in a seventh consecutive month of year-over-year declines.
Much of that sales decline is due to the fall in oil prices during the past year. But even after factoring that out, wholesale sales are either flat or declining, leading one to wonder how the economy could have grown at all during the past year or so. Josh Boak at the Associated Press appeared to understand that there are some problems out there, but his Thursday morning report understated their seriousness, largely because he doesn't seem to understand that a high level of inventories can be a very dangerous thing:










