Yes, ladies and gentlemen, it’s unexpected when gas prices ramp that consumer sentiment goes sour….
The preliminary March reading on the overall index on consumer sentiment came in at 68.2, down from 77.5 in February. That was the lowest level since October 2010 and was well off the median forecast of 76.5 among economists polled by Reuters.
The spin came fast and furious. Everyone and their brother chimed in to say that this did not presage a “downturn.” Uh huh. Like it didn’t the last time gas prices spiked up, right? Oh wait.
More troublesome is this read in the internals of the report:
Inflation concerns were still high, with the survey’s one-year inflation expectation rising to 4.6 percent from 3.4 percent in February, the highest since August 2008.
The survey’s five- to 10-year inflation outlook rose to 3.2 percent from 2.9 percent.
Eh, that’s bad. That’s a 37% loss in purchasing power over 10 years.
No really, you don’t think that might happen with the government paying the FSA off, right?
(FSA = “Free **** Army”)
And with what will they try to do that? Why more handouts, of course. But that premise got a swatting today in Wisconsin, where Governor Walker signed the bill stripping public unions of most of their collective bargaining privilege.
Armor yourself ladies and gentlemen. The FSA has a loud voice but their claim on your wallet only extends as far as your wallet does, and unfortunately for them the American wallet is getting awfully bare.
This is likely to get very interesting, and more than a little violent as they go through forced withdrawal.
I think our buddy is coming back out to play rather soon, right about the time the FSA gets their walking papers.
