Killer Combo of High Gas, Food Prices at Key Tipping Point. ... The combination of rising gasoline prices and the steepest increase in the cost of food in a generation is threatening to push the US economy into a recession, according to Craig Johnson, president of Customer Growth Partners. Johnson looks at the percentage of income consumers are spending on gasoline and food as a way of gauging how consumers will fare when energy prices spike. With gas prices now standing at about $3.90 a gallon, energy costs have now passed 6 percent of spending – a level that Johnson says is a "tipping point" for consumers. – CNBC
Dominant Social Theme: Trouble's a-coming. How'd it get to this? Who knows? But batten down the hatches!
Free-Market Analysis: Craig Johnson, as quoted by CNBC in this article posted last week, has a doleful tale to tell. He seems certain the US is headed for a double-dip recession. And his remarks are not so different than many being quoted in the mainstream today. The litany is always the same – higher this and higher that and a weaker dollar as well. It's a dominant social theme of the power elite: The economy is terrible, price inflation is moving up and there is nothing to be done.
While this litany of woes, presented this way, seems logical, we want to review in this article some of the underlying causes for what is going on in America and in the West. It's been our contention that the concatenation of economic woes (all coming at once as they are) are not an act of God as mainstream newscasters and economists present it, but something more calculated and deliberate. Craig Johnson makes our job easy because he has been tracking the trends and the direction in which they lead.