Consumer Spending Falls in June as Inflation Rises: A sign of things to come.

The Associated press reported yesterday that last month, consumer spending fell by 0.2 percent, and that this fall was a result of inflation. Some of the factors which are leading to a decline in consumer spending include gasoline costs, high food prices, and ever increasing energy costs. The AP article then goes on to admit that inflation combined with higher energy costs ate up much of the stimulus checks that were mailed out by the government during the previous months.

Well thanks for stating the obvious AP. What these guys failed to mention is that the stimulus checks are directly connected to the rise in prices. What, do you think the government can just print hundreds of billions of dollars, send checks to Americans in the mail, and the costs of goods and services remain stable? Of course not! Pumping money into the economy only makes prices go higher, and this is economics 101.

The stimulus plan is a joke, and can be likened to applying a band aid to a huge cut on the arm, a cut so deep that it reaches the bone. Just as the band aid will be powerless in stopping such a wound, so Bush's stimulus checks are powerless to stop the decline of the U.S. economy. If you were one of the "lucky" people who got the checks in the mail(I didn't, but the government will sure contact me soon about being behind on my income tax payments), then you would be wise to head down to the nearest coin shop, and buy yourself some gold and silver coins.

Give the owners of the coin shop paper money that is becoming worthless, and exchange it for precious metals that have REAL intrinsic value. You'd better do it while you can, because if the government keeps sending checks in the mail to Americans, the day will come soon when those checks, and the dollar itself, are worthless, and the gold and silver coin dealers are going to close their doors. That day may be coming sooner than we think.