I’m guessing you’ve heard a spokesmodel “journalist” or Wall Street Ivy League economist hack, on the corporate mainstream media, bloviate about the dreadful weather keeping consumers from spending over the last six months. They assured the technology sedated masses that they would resume their debt financed orgy of consumerism as soon as the warm winds of Spring arrived.
Well, Spring arrived right on time in April. Temperatures rose, the sun came out, and consumers spent even less. Oops!!!!
Frantic calls are being made to Madison Avenue public relations maggots for a new spin on data proving we are in recession. Maybe it was too sunny and warm in April. Consumers just wanted to sunbath in their backyards because 92 million of them aren’t in the labor force anymore.
It seems we just experienced the largest drop in consumer spending since September 2009, when all of the highly educated, highly paid, mouthpieces for the establishment insisted we would see a consumer spending revival as soon as the snow melted.
Propaganda, storylines, lies, misinformation and cheer leading constitute our entire society at this point in our long decline. We all know for a fact we are paying far more for energy, food, and Obamacare boosted insurance premiums. The collapse in Retailer sales and profits proves we have nothing left to spend on anything else. Weather has nothing to do with anything.
Looking at the data on the BEA website reveals these tidbits:
- The government actually wants you to believe that taking funds from your paycheck for social security, medicare, medicaid and obamacare and then handing them to other people constitutes INCOME. These government transfers went up by $129 billion in April versus last April.
- Meanwhile, the 120 million or so Americans still working for companies only increased their income by $247 billion.
- Government drones are now “earning” 16.4% of all the wages paid in this country. Despite a storyline of government austerity, wages of government drones continue to rise.
- Turning off the spigot of extended unemployment is clearly seen in the data as unemployment payments have crashed by $31 billion over last April, a 55% reduction. It seems cutting off people from 2 years of unemployment and reducing their food stamps has put a little crimp in our fake economic recovery.
- The most damning statistic in the data is Real Disposable Income Per Capita. This is how much you have left to spend after taxes, adjusted for inflation (using understated BLS number). This figure stands at $37,174 today. This figure was $37,584 in May 2008, just prior to the Federal Reserve created financial meltdown. So here we are six years later and the average person has 1% less real disposable income.
We have less real disposable income, fewer jobs, higher energy, food, and health insurance costs and the stock market continues to hit all-time highs as the oligarchs use their HFT supercomputers to fleece the muppets, rig the system and reap Federal Reserve created riches for themselves. The sheeple hate Congress and then vote 99% of incumbents back into office.
If you want to understand why we are in an inescapable downward financial spiral look no further than what percentage of personal income constitutes government entitlement transfers from the productive to the non-productive:
1988 – 11.3% of personal income was made up of government transfers
2000 – 12.0%
2008 – 14.2%
2014 – 17.0%
Does this trend seem to be sustainable, or have we crossed the point of no return?
And so it goes.