But do note how the MSM reports it:
Consumers opened their wallets and pocketbooks a bit more in June, increasing their spending for the second straight month while saving a bit less, even as incomes fell sharply.
Consumer spending is closely watched because it accounts for about 70 percent of total economic activity. Many economists warned that despite the slight increase in June, falling wages and rising unemployment likely will keep spending sluggish for the rest of this year.
Sounds good, huh? I mean, goodness – here’s a “green shoot” and Obamunism will work! Hurrah! But, hold on a moment: Incomes fell. How, then, did consumer spending rise? I mean, if your income is going down, are you heading to the mall? I know that is key to Obamunism – but does anyone rational (ie, non-liberal) do that sort of thing? Of course not. So, what happened?
Prices rose. For instance, in gasoline – keeping in mind that the rise in consumer spending happened in June:
Those slowly swelling pump prices aren’t done yet, energy analysts said, as crude oil futures jumped back above $70 a barrel today to close near their trading high for the year.
Retail gasoline prices had been on a gradual descent since reaching their 2009 highs on June 22, averaging $3.005 in California and $2.691 nationally for a gallon of regular unleaded.
But they are on the rise again, jumping 6.7 cents to $2.896 a gallon in California over the last week, according to the Energy Department’s weekly survey of filling stations, released today.(emphasis added)
So, gasoline surged to its 2009 high in June and, there ya go!, consumer spending spiked in June. I wonder why? Can any liberal out there tell me? Now, think about this liberals. Here you’ve got people and they’ve got some money. They are making less money than they used to. They are cutting expenses down to the essentials. Gasoline is an essential. The price went up (and, please note, is heading back up after a short period of declining prices). And this means….come on, you can figure it out…this means….that people were just buying the same necessities but they cost more. There was no increase in consumer spending…just an increase in citizen pain.
Now, as to why prices are up in a down economy and a continuing glut of oil on the market – the banks (you know, that we bailed out so they would loan us money to get things moving again) seem to be investing in things dealing with commodities. In a crashed economy with the dollar under pressure and everyone printing fiat money like mad, the money people are moving their cash in to hard assets. Things which will keep their value if there is a large spurt of inflation.
Start thinking, liberals. All of this will come together for you eventually.
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