Consumer confidence plunges as inflation increases most in four years

Apparently paying  higher gas prices, more for groceries, and higher taxes is not giving consumers very much confidence in the economy as the UMich Consumer Sentiment index dropped to the lowest point in February since December 2011.  Clearly Americans are worried about an economic collapse, as they should be.

The Wall Street Journal is reporting that consumer prices increased by the most in February in four years with gas prices being the main factor.  They say this is “temporary” inflation though.  That’s doubtful since there are no signs of the Fed letting up with its aggressive money printing.

The Federal Reserve relies on the government CPI which of course is doctored to make inflation numbers look lower.  So even as prices for shelter, medical care, food, and many other consumer goods rise, the Fed thinks there is plenty of leeway for more stimulus.

But don’t worry, the stock market is making record highs, as a result of this money printing.  Maybe everyone should go out and buy stocks and they will feel better about the economy.  My suggestion:  buy gold and silver to protect your savings from the devaluation of the dollar that Ben Bernanke is responsible for.

Like this article? Get ECN delivered to your inbox daily. Subscribe here.

Leave a Comment