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  • Americans spending more with income almost flat [Edit or Delete]0 comments
    Oct 30, 2011 2:37 PM
    The thesis of Dyseconomics remains true:

    The Q4 rally which I predicted a few months ago is happening right now as the major indexes rally for a 4th consecutive week. Is it merely luck or a coincidence that Im always right about macro economics and the stock market or is it because I'm skilled? You can't be right about so many things unless it's attributed to skill. I know more about stocks and the economy than any other blogger.

    Here is some good news:

    Americans spending more with income almost flatNext to nothing: Americans find tiny returns on savings and decide to spend

    Ofcourse, the Ron Paul/Zerohedge/Karl Denninger/huffington Post libs would love for Americans to stuff all their money under a mattress so that the economy fails and the rich get soaked. Not gonna happen lol . By leaving rates at 0% forever, the fed is the creator of wealth. The fed detractors, on the other hand, want to see wealth be destroyed because they are jealous closet marxists. That's why they are voting for Obama, who infamously proclaimed in a 2008 debate that he would like to spread the wealth. Or they are voting for Ron Paul.  How do you spread the wealth? By going after the fed, attacking the consumer, attacking Wall St., attacking the rich, controlling government spending, attacking defense spending, imposing excessive regulation, and class warfare. 

    Consumers maxing out the credit card is to be encouraged. George W. Bush told Americans to spend after 911. Do politicians have to guts to persuade Americans to spend, even if they will be evicerated by leftist blogs? It's good for the economy to spend as much as possible, not horde is away under a mattress. Money spend on food and gas goes into retail sales, just like clothes, electronics, college tuition, and healthcare. It's not like one form of spending is superior to another. It all goes into GDP. That debunks the liberal myth that surging food & gas prices will cripple the economy. Wrong. Wrong. Wrong.  

    Another benefit of nosebleed living expenses: it gets the personal savings rate lower, so Americans are not just spending more on essentials , but saving less overall.

    Here is a fact you probably didn't know: Karl Denninger did vote for Obama according to his wikipedia profile. 

    On January 20, 2009 Denninger published a blog post regarding the suggestion to mail tea-bags to the White House and Congress. The title of his post was "Tea Party February 1st?" It was written on the same day and in response to President Obama's inauguration[2], even though Denninger had voted for Obama.[3] 

    Same for Matt Taibbi who voted for Obama in 2008 and wrote in that he will for him again in 2012. Tim Knight of slopeofhope, the loser blogger that often writes tirades against the fed and Washington, also voted for Obama in 2008. How about zerohedge? I would wager a large percentage of its writers and readers did vote for Obama in 2008 and will vote for either Ron Paul (who supports don't ask don't tell like a typical lib) and Obama. There is an strong correlation between fed and Washington bashing and Obama voting. 

    Congress, the fed are competent. The economy is not dying. There is no double dip. Too big to fail policy is working. You have blowout profits and earnings for a 13th consecutive quarter,  massive gains in productivity, massive gains in exports, surging home prices in Silicon Valley, a booming stock market, surging web 2.0 valuations, endless wealth creation.  A lower congressional approval rating is paradoxically bullish for the economy and stock market; when policy makers devote too much time to creating policy aimed at benefiting mainstreet and not the top 1%, the economy suffers. Stocks tend to rally when congressional approval and consumer confidence is  low and peak when they are high. We're not a welfare state. Job loss is your problem, not the government's. 

    Don't try to spread/destroy my wealth by attacking the fed. 

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