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:
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