Is Increased Consumer Spending Truly a Sign that the Economy is Rebounding?

“The American taxpayer is on the hook for 59 Trillion dollars” - Dennis Cauchon in USA Today

(HARRISVILLE, N.H.) - According to the “News Release” from the Bureau of Labor Statistics, embargoed until 8:30 a.m. (EDT) Wednesday, May 19, 2010, the United States is in a “stable” inflationary mode.

They are basing this on the fact that compared to $1.00 spent between December of 2007 and December 2008 to acquire goods and services, you only have to spend $1.26 to acquire the same goods and services in April of 2010.

Now let us see what they consider stable: I calculate that cost increase to be a 26% rise over the interim period. Would anyone out there other than me like to have received that same “stable” increase in personal income?

Do you think that any of the previously employed United States citizens who have lost their jobs since December of 2008 would like to have that same “stable” increase in income?

To add insult to injury, the government then has the chutzpah to say that the increase in consumer spending is a clear sign that the economy is rebounding. Common sense tells me that if the cost of goods and services increase 26% in that time period, then consumer spending will likely increase by a similar amount. That is not called “increased consumer confidence” folks . . . it is called “survival”!

According to an article by Dennis Cauchon in USA Today, “The American taxpayer is on the hook for 59 Trillion dollars”. Should that inspire confidence? Well it does not give me the warm fuzzies.

According to Dennis’ article the average American household willingly has agreed to take-on an average of $112,043 in debt including mortgages, car, credit card, and all other debt combined, while the federal government has spent their way into a position where every U.S. household is now on the hook for an average of $516,348, this is roughly 5 times the debt the average taxpayer feels they can handle. It is one thing to overextend by a bit but 500% . . . now who in their right mind would do this.

Maybe that is a question we should ask of the incumbents who are currently being shown the door during this primary election season, since they are the ones who created this situation. If these figures indicate that the economy is rebounding, then I believe that it is appropriate to ask where this particular rebound is headed before we all reach the probable destination, 1,000 feet below the cliff we are so obviously headed for.

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Hank Ruark May 20, 2010 11:09 am (Pacific time)

"Anon": Just as sample of solid-fact source, internationally now recognized in economics, here is information beyond yours, sir... Perhaps integrity exposed here will help you to learn what a true economist does and how findings are well reported by those so-trained. SO sign your stuff, with real name,with truthful facts re training,experience, et al when requested. Oregon Center for Public Policy Update May 20, 2010 In this issue... Congress Should Continue What's Working: TANF ECF Facts Matter, but So Does Laughter! Congress Should Continue What's Working: TANF ECF In recessionary times, spurring economic activity and helping the most vulnerable families should be top priorities. By those measures, Congress did well in establishing the Temporary Assistance for Needy Families Emergency Contingency Fund (TANF ECF) as part of last year's federal Recovery Act. The TANF ECF has pumped tens of millions of dollars into Oregon's economy, funds that have enabled the state to provide basic assistance, supportive services and employment assistance to thousands of Oregon's most desperate families with children while spurring economic activity. But unless Congress moves to extend it, the extra federal funding will end prematurely later this year. The ECF is scheduled to expire on September 30, 2010, even though need for the TANF program will stay at elevated levels because of persistently high unemployment. Struggling families, as well as both Oregon's and the nation's economy, would be well served by an extension of the TANF ECF. Read the fact sheet Continue What's Working: Congress Should Extend the TANF ECF to Bolster the Economy and Struggling Families. Click here for a PDF copy. ---------------- Please note offer of a "fact sheet" spelling out with proof the truths established and now reported. Each of us writing here in S-N is prepared to do likewise on whatever we state...

Anonymous May 19, 2010 5:40 pm (Pacific time)

my apologies. I went to this article, I saw no comments pending and mine were not there, and from precious experience..well.anyway, thanks for posting my comment.
I will continue to keep within the rules and try not to be to extreme. Altho, what some might seem extreme, might be what I think is truth.
Again, my apologies on this one, and thanks for posting my comment. `

Anonymous May 19, 2010 8:06 pm (Pacific time)

is this paranoid? Go to "qualityinfo.org" an Oregon state website. Research it like I did. 3900 jobs added in April, 3000 of them census workers. several hundred more from taxpayer money. Wholesale trade did well, but as I wrote last month, they are buying inventory, believing the MSM/government rhetoric. Last month, I wrote, watch the retail trade. Well, lo and behold, the retail trade shed 1100 jobs. The wholesalers are going to have alot of inventory on their shelves.Add to that, 400 jobs shed from recreation. 400 jobs shed for recreation this time of year? THat is concerning. Also, the unemployment extention they voted for? As I said months ago that money is gone. And research further, Oregon's unemployment coffer is broke by end of year, and will have to borrow federal funds. All jobs are nothing but stimulus money, printed out of thin air. Is that the truth you are talking about? I want to share truth too Salem-news, but if it hurts your democratic views...yeesh, get over the democrat thing, get over the republican thing, and seek the truth you claim to seek. Come July, the census takers jobs are gone, the wholesalers will have no retailers, etc. Look it up yourself right on the Oregon state website. I am extremley concerned. I myself, prepared for this, but I feel bad for those who did not, and just trying to share to help. We are so screwed. I like that you expose israel, but it wont mean much when..yeesh, 700,000 people in Oregon are on food stamps! Give me a break here, I am CONCERNED for my fellow neighbors and citizens! ok???

Hank Ruark May 19, 2010 5:40 pm (Pacific time)

"Anon:" Woreds are cheap, which is about the summit of this anon re economics... Without courage to declare himself, thus qualifying or killing his claims, he even has the chutzpa to charge our Editor with his own fearsome retribution by use of other channels !! That should tell you a very significant something re any fool overburdened with words pressing him so badly they must be inflicted on others, even at the cost of silly and ridiculous self-revelation in a public channel. If you can't sign it with real name, don't send it... Anonmymity is sure sign of attempt to delude,mislead or otherwise manipulate readers; that's communication research, not merely personal opinion. Nobody puts on mask unless they mean to hide face.

Anonymous May 19, 2010 4:31 pm (Pacific time)

I have followed all rules of salem-news, have been kind and professional, still u edit or delete my comments. Because my comments make sense, but are against your beliefs.. its ok, will go away. but u have no clue how many alternative websites I have influence over. I will be writing all of them, and showing them my comments, show them your comments back.. I tried to get along and be nice, you didnt. I will be writing all the websites with this info.
good luck.

Editor: No, we are not here to publish things that are overly stretched, or paranoid, because we have enough of a job on our hands educating people about the basic problems in the world. No offense, but don't keep frustrating yourself here.

Anonymous May 19, 2010 11:57 am (Pacific time)

I consider myself a very learned economist. I can pretty much guarantee you, you wont recognize this country by the end of the year. This article is correct, but it is only part of the entire picture. Inflation, lack of jobs, other countries not lending, enormous deficit, Calif (the worlds 8th largest economy) bankrupt, etc. The dollar has a little more time, but I would get out of the stock market. The only investment worth having is precious metals. This collapse was planned by the bankers, many countries already figured that out. I wish i could share more, but research yourself, quit believing the government and the mainstream tv, or the ones who did not know this was even coming. The bankers (thanks to D.C.) just stole all our money, and they are coming for your 401k's next. Get out of 401k's (even if a loss), and buy gold/silver. I strongly urge you to prepare for an economic collapse. In closing: removing incumbents, lack of support for the wars, the economy collapsing, people awakening to the current admin being in bed with the elite bankers, you will either see a war start, or another very large false flag attack. It is their M.O. Be aware, and prepare.

gp May 19, 2010 11:37 am (Pacific time)

spin? tricks? dog and pony show? or just plain lies, it all comes down to the same broken political and economic system.

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