If you ever want proof of the multitude of economic lies and myths that exist in today’s markets, look no further than the most recent reports put out by the Boyz in DC.
Case in point…Economists keep pointing to consumer spending as proof that the American economy remains strong.
But is it strong?
Or is it the fact that consumers are spending more because everything costs more than last year?
Simultaneously, they brag about the resilient American consumer. But they fail to note that real disposable income did not increase AT ALL.
It’s acceptable and almost become fashionable to say how consumer spending can rise during inflation simply because everything costs more.
However, if your grocery bill rises from $150 to $200, you increased consumer spending by 33%, but you did not become wealthier or eat 33% more food.
You simply handed over more dollars for the same necessities.
See how slanted the narrative becomes?
Economic Lies
Another great lie is when the morons in DC tell people inflation has fallen because the RATE of increase is lower than it was at the peak.
LOL!
But that does not mean prices went back down.
Ironically (or NOT) the Boyz don’t want you to know that lower inflation merely means prices are rising more slowly from an already elevated level.
Example: Even if inflation fell to 2% tomorrow, today’s elevated price level would remain. Prices would simply continue increasing from that higher base.
And this is how inflation quietly destroys the middle class.
As a result, the myth of Strong Consumer Spending does not necessarily mean the consumer is strong.
Sometimes it means the consumer is paying substantially more simply to remain in the same place.
Case in point…The current U.S. annual inflation rate is 3.4% for the 12-month period ending in August 2026.
Let’s do some math.
The national average price for a gallon of regular gasoline is about $4.36 today, compared to about $3.13 one year ago, according to data from AAA Fuel Prices
That’s a 39% increase in a necessity item.
Big difference than 3.4%.
Have you ever wondered why they can make these claims lies?
Look at the way they report the Consumer Price Index.
Core CPI (YoY): Up 2.4% (excluding food and energy).
Excluding food and energy is the key.
Again, do the math.
How much food, gasoline, or utilities (water, heat, a/c) did you use last month compared to buying a car, home, TV, computers, etc.?
So, believing and acting upon Economic Lies and Myths put out by out government is almost as dangerous as acting on the lies and manipulations of the Boyz on Wall Street.
Not surprisingly, they are joined at the hip.
So, what can you do about it?
Learn how to avoid the traps and mine fields that cripple most investors in our upcoming October newsletter (HERE).
Share this with a friend…especially if they can’t figure out that they are paying nearly 40% more at the gas pump but believe that inflation is slowing down. They’ll thank YOU later.
And tell them:
We’re Not Just About Finance
But we use finance to give you hope.
“And you shall know the truth, and the truth shall make you free.”
