What’s worse than having Wall Street kingpins like Bernanke and Geithner in charge of America’s economic future? China taking the reins, that’s what.

While Washington’s all-powerful ego may have our leaders believe they still control our fiscal fate, they lost that power long ago. Now, the Fed and the Treasury may dictate who gets what, but China decides how much and when.

China bulls beware… Chinese regulator warns of American-style housing bubble… Market rejoices over housing start rebound… should you be celebrating too? Dan Amoss on shorting the stock market’s recent strength… Sign of the times… Mexicans, Czechs no longer welcome in Canada… Plus, Byron King reveals an arresting historic gold chart…

All this week, we’ve been sounding the alarm of the so-called economic “green shoots.” These have now been exposed as being pure propaganda designed to lure investors back into stocks and to allow banks to recapitalize through share issuances at artificially elevated prices.

Those elusive “green shoots” that economic optimists had been digging up lately were buried under disappointing data from the Commerce Department in Washington yesterday (Wednesday) when it was revealed that retail sales in the unexpectedly dropped in April.

Bill is traveling for the rest of the week, but fear not – we will muddle through without him. A good bit of activity in the markets since yesterday.

Retail sales and inflation took a step backward in March, as dour consumer demand hurt the former and suppressed energy prices stalled the latter.

Retail sales and inflation took a step backward in March, as dour consumer demand hurt the former and suppressed energy prices stalled the latter.

Back in December, with the U.S. recession in its 12th month – and showing no signs of abating – Money Morning Contributing Editor Martin Hutchinson warned that an “L”-shaped recession was very possible.

Retail sales disappoint….  Chuck’s views on the Lone Prop…  Waiting on the ECB…  Emerging market currencies sell off…  And Now… Today’s Pfennig!

This week’s economic reports will be highlighted by Friday’s unemployment report, which analysts expect will illustrate the 11th straight month of declining job ranks in the U.S. economy.