Let the spin begin. The MSM is ecstatic over the fact that consumers spent at the fastest rate in six months. They spent alright. They spent it on gas and food:
One little problem. People only made 0.1% more of income. This means they went further into debt. I thought the MSM was telling me the consumer was deleveraging and paying down debt. The savings rate plummeted to a level of 3.7%, below the levels prior to the 2008 Crash.
This is surely a sign of recovery, as consumers go back into debt and use up their meager savings. Let’s dig into the actual data at:
http://www.bea.gov/iTable/iTable.cfm?ReqID=9&step=1
The data reveals the delusion of consumers, the disgusting actions of Ben Bernanke, and the fraud being perpetrated by the Federal government and their misinformation agencies.
- Americans spent $60 billion more in August than they did in July. Americans’ wages and salaries grew by $9 billion in August. Does anyone see a problem here?
- Interest income declined by $13 billion and is now $425 billion BELOW what was being paid to savers and seniors in 2008. Ben Bernanke has stolen $425 billion per year from savers and your grandma and handed it to the criminal Wall Street banks. Imagine how much better the economy would be if average Americans were able to spend that $425 billion per year. Instead, it is getting distributed as bonuses to bankers.
- We know where the surge in consumer expenditures is happening. Gas prices are up 30% in the last three months and food costs for wheat, soybeans and corn are soaring. Americans are barely holding on and are now desperately turning to their credit cards to stay afloat.
- The funniest part about these government statistics is that Personal Income includes government entitlement transfers as INCOME. That is simply hysterical in its Orwellian simplicity. You take money from one group of people and redistribute it to another group of people and then call it income.
- Today, 17.7% of all the Personal Income in this country is generated by government tansfers. Another 9% is generated by government jobs.
- In August 2008, 14.9% of all Personal Income in this country was generated by government transfers.
- In August 2000, 12.7% of all Personal Income in this country was generated by government transfers.
- In August 1986, 12.1% of all Personal Income in this country was generated by government transfers.
- Since 1980, wages and salary have grown 521% while government transfers have grown by 809%. Government reported inflation has risen by 277% since 1980, but real inflation has grown by over 500%, leaving the average person poorer than they were in 1980.
When you read an MSM headline about soaring consumer spending and the wonderful benefits of such an occurance, try looking under the hood at the real picture. Now back to buying stocks for the long run.
Consumer spending climbs 0.5% in August
By Jeffry Bartash
Administrator says:
Chicago PMI falls into negative territory in Sept
.
WASHINGTON (MarketWatch) — The MNI Chicago Report said its purchasing managers’ index fell to 49.7 in September from 53.0 in August. Any reading below 50 indicates contraction. This is the lowest level in three years. The size of the decline was unexpected. Economists had expected only a small decline.
Well-loved. Like or Dislike:
5 
0
28th September 2012 at 9:57 am
Stucky says:
Two godamned dollars for one fucking Avocado!!
I’m ready to riot in the streets. Can I get an “Amen!”?
Well-loved. Like or Dislike:
9 
0
28th September 2012 at 10:35 am
Administrator says:
Amen
Well-loved. Like or Dislike:
12 
0
28th September 2012 at 10:47 am
Administrator says:
Cue Stagflationary Recession: Chicago PMI Huge Sub-50 Miss, Back To September 2009 Levels; Prices Paid Spikes
Submitted by Tyler Durden on 09/28/2012 09:57 -0400
QE1, QE2, Operation Twist 1, Operation Twist 2, a Fed balance sheet that is now expected to be $5 trillion in 2 years, and all we get is a lousy manufacturing economy that according to the Chicago PMI just dipped into contraction, or for all intents and purposes, recession, printing its first sub-50 print, 49.7 specifically, on expectations of a 52.8, and down from 53. This was the lowest since September 2009 and the biggest miss in 4 months. Specifically, the employment index came at a two and a half year low, New Orders, Backlogs and Deliveries had their 3 month moving averages at the lowest since Mid 2009, and Capital Equipment printed at a 17 month low. But not all hope is lost: at least prices paid soared for the third consecutive month to 63.2 from 57. Cue not just recession, but stagflationary recession. It also means that both the Manufacturing ISM and Q3 GDP will be a total disaster. Time to start pricing in QE X to be followed 24 hours later by QE X+1. The central bank cartel is starting to lose control.
Well-loved. Like or Dislike:
6 
0
28th September 2012 at 10:52 am
AWD says:
Amen Stuck
I hope the economy collapses quicker. There’s only six weeks till the election. “Speed, Scotty, we need more speed” “I’m giving her all I got”.
Well-loved. Like or Dislike:
10 
1
28th September 2012 at 11:29 am
Colma Rising says:
A-Dubs: There will only be trouble later… for now it’s more like “I’ve diverted power from the warp drive to life support… it’ll hold for now, but I just need more time, Captain!”
The fall in savings (which is future consumption) indicates that people…. you know, those wise and savvy we call fellow citizens…. think they will be better off tomorrow. Morons.
OR they see their purchasing power versus returns is a loser and want to spend….
Yeah right. The second would assume an understanding of exponents and a shift from rubber dog shit purchases to necessities. Dumbasses are buying the same amount of rubber dog shit on top of their gas and food on credit.
Maybe people should eat rice, buy pan hats and ride bicycles now because buying rubber dog shit on credit will make all of it unavailable later. Maybe that’s exactly what the policy makers intend.
Well-loved. Like or Dislike:
9 
0
28th September 2012 at 12:08 pm
AWD says:
Stagflation
The crowing jewel of the Carter presidency; brought back by the Obama presidency.
Like or Dislike:
4 
3
28th September 2012 at 12:20 pm
Colma Rising says:
What are the coffee futures doing? I have the pot but if I have to crack cans of pre-grind instead of grinding beans I’ll pe pissed.
Really pissed.
Like or Dislike:
4 
0
28th September 2012 at 3:29 pm
Jimi d says:
I am so FUCKING SICK and TIRED of the way the mass media ‘spins’ the news. Recently I did a little personal study of ‘BLOOMBERG’ daily news. I even printed out the articles so as to have a hard copy for reference. It is absolutley mind blowing how from one day to the next they reverse course on a subject, any subject ! I guess they figure that no one remembers from one day to the next what was said. Well I do ! And this sort of thing drives me fucking bat shit crazy mad. I even sent emails to the editors showing them how missleading their stories were. Of course I never received any replys.
Well-loved. Like or Dislike:
5 
0
28th September 2012 at 3:30 pm
Colma Rising says:
You know?
Fuck mega storms, money printing, fraud and hundreds of millions of wall-eyed dumbasses, just don’t fuck with the holy nectar of the emperors, coffee.
Like or Dislike:
4 
0
28th September 2012 at 3:33 pm
Colma Rising says:
Jimi D: No replies?
Refer to them as sperm-burping tweakers. That’ll make them look twice.
Like or Dislike:
4 
0
28th September 2012 at 3:36 pm
Kill Bill says:
I have a feeling alot of what was spent on those debt peonage cards was for school clothes and supplies for the school year ahead.
~~~
The New York Times reported that Judge Robert L. Wilkins of the U.S. District Court for the District of Columbia sent the rule back to the Commodity Futures Trading Commission (CFTC) for review.
The rule put limits on the amount of derivatives contracts traders could hold on 28 commodities, including oil, in an effort to curtail the kind of trading blamed for inflating gasoline prices.
~~~
And so it goes.
Like or Dislike:
2 
0
28th September 2012 at 8:19 pm
Kill Bill says:
But but but Colma, what if a mega storm hit the coffee crops in Costa Rica?
Like or Dislike:
2 
0
28th September 2012 at 8:21 pm
Colma Rising says:
KB: Then the farmers in ethiopia and sumatra better work double time or we bomb them.
Like or Dislike:
3 
0
28th September 2012 at 8:57 pm
Colma Rising says:
And Costa Rica too just to teach them that storms are no excuse.
Like or Dislike:
3 
0
28th September 2012 at 8:58 pm
TeresaE says:
My biz entered the (now) expected Presidential Election Slowdown. September was our lowest gross sales since 2009.
Talking to those in the industry (that actually pay attention, amazing how many owners don’t, and don’t remember), they say it usually picks back up in Janaury.
In 2004 it happened, then we didn’t recover until 2006 because Michigan entered our “one-state” recession.
In 2008 it happened again, we still haven’t fully recovered (still down 20–25% from our “average,” well, old average), but were “ok” by 2010.
My money is on this time it being a doozy. Was having this conversation with some good friends at dinner the other night, he (works in Ford light engineering, as a contractor, he mentioned that the contracting houses are slowly but surely replacing all the older, American, engineers with low-experienced Asian H1-B visa holders, talk about irony for a former union guy) thinks that things will pop right back up if Mittens is elected.
I tried pointing out the millions of reasons why it won’t (especially including his own experience of the lower paid Asian visa holders taking even our temp/contract jobs away), including the reality that much of our “activity” in GDP is completely related to gov spending that is going to dry up about November 9, the fiscal cliff, the inability of CONgress to agree on anything except shitting on the Constitution (where’s the fucking gridlock then? huh? anybody?), the drought, Benny, the Middle East, blah, blah, blah, blah.
Nope, our best days are ahead of us (if Mittens is elected), there is no money/budget /spending problem and as long as Obamacare is repealed then all will be fine.
It became real obvious that nobody wants to discuss reality. Most aren’t even open to reading about it themselves.
Yes, consumer spending surged and the ISM is only down by a “little” (of course they don’t count their former members now without jobs, inventories or futures), and if I had no clue about where these numbers come from and the level of manipulation behind them, I guess that I, too, could buy into the blue skies mentality.
I left dinner fighting off despair. If educated, hard-working, saving and “informed” citizens refuse to even look for truth behind illusions, just how fucking bad is life going to get?
They thought they were free, so do we.
We are all wrong.
Like or Dislike:
3 
0
28th September 2012 at 9:03 pm
Colma Rising says:
I’ll try to use more staples and nails, Teresa, just for you.
I’m going to say this here, because I don’t want to make a post about it:
Yeah about Green Day tonight at the Fillmore, which is cool because it’s a venue I’ve met band members 75% of the time… at least someone…. at, anyway:
Maybe BJA would be better suited to getting a PhD at Cornell rather than smoking the glass dick and spazzing out into rehab cuz those tickets were hard to come by.
Douchebag.
Like or Dislike:
1 
0
28th September 2012 at 9:12 pm
TeresaE says:
Colma Rising says:
I’ll try to use more staples and nails, Teresa, just for you.
Sorry Colma, I deal in (mostly) specialized industrial fasteners.
Staples and nails are all imported, and commoditized, and no way to make a living for an American. Not for a decade at least.
But, thanks so much for the thought!
Like or Dislike:
1 
0
28th September 2012 at 1:46 am