This little propaganda press release from the government/mainstream media mouthpieces is a beauty. Based on the headline, the mindless masses see that consumers are spending at a healthy pace. All must be well. The first sentence declares this was the highest rate of spending since November. Of course that is unequivocally false, since last month the propaganda peddlers reported a 0.4% increase in spending. But wait, they only over-reported last month’s increase by 100%. Their bad. The increase was really only a pitiful 0.2%, and not a strong 0.4%. Guess what will happen next month? The 0.3% reported increase will be adjusted back to 0.1% and the media will report the strongest growth since November again. Do you get it?
Did you notice why consumer spending surged in January? Your heating bill and health insurance premiums surged. Yes. Paying more due to Obamacare and the record cold caused by global warming is considered a positive economic development by your government keepers. We also know for a fact that real wages are stagnant or declining, so any increase in spending is happening using debt. That is wonderful for the debt peddlers on Wall Street and in the government (student loans, Ally Financial), but not so good for the average person.
The last couple sentences of this fabulous economic release is that inflation has only grown by 0.9% in the last year. That’s precious. Have your expenses only grown by 0.9% in the last year? I didn’t think so. Hurry up and turn on CNBC to watch Liesman and Cramer be exhilarated by this fabulous consumer data.
Consumer spending rises 0.3% in February
When I go to the charts and peruse the data, I find these interesting factoids:
- Real disposable personal income per person in the U.S. is currently $37,010. That is using the bastardized under-reported inflation figures from the BLS. Even using that joke of an adjustment, real disposable personal income per person is 1.5% below what it was in May of 2008.
- Bernanke’s ZIRP is the gift that keeps giving to senior citizens as interest income is $158 BILLION lower now than it was in May 2007. All the grandmas out there eating cat food know who to thank.
- When the crisis hit in 2008/2009 people began to come to their senses and the savings rate spiked to 6% – 8%. Now the masses are either broke or delusional, as the savings rate is near record lows at 4.3%.
- Personal income has risen by $430 billion in the last year and $85 billion (20% of total) of that is government transfers (SS, Medicare, SNAP, Vet benefits, Medicaid, unemployment). Only in Orwellian America is the redistribution from producers to non-producers considered income.
- Less than 50% of the increase ($211 billion) is from private industry wages. Who needs jobs when the government is distributing the cash?
- Laughably, the government drones say that you spent less on gasoline, natural gas and electricity this February versus last February. Anyone who gets a heating bill every month knows that is not true.
It gets tiring poking holes in the propaganda spewed at us every day, but I’ll keep trying.