US consumer sentiment is at 44.8 the lowest in history (data started in the 1960's). It is not surprising since there is a joint relationship between gasoline prices and consumer sentiment for decades. The rising gasoline prices are pounded into the human mind since people see the gas station signs on every street corner. Then they fill up their tank and are punched in the face. Consumers then get the mindset that they cannot spend frivolously and must instead tighten the purse strings. The high gasoline prices creates negative sentiment and viola, it shows up in the historic number released by the University of Michigan Surveys of Consumers.
When Americans see prices falling at the pump, the opposite mindset occurs. Sine it costs less to fill the tank, that is more money to spend, or save, and things are looking rosy. Consumer sentiment rises and reflects a healthy economy and happy attitudes.
America is the land of the have's and have-not's. This is why consumer spending is holding up. In years gone by, the stock market would already be flushed down the toilet, but the obscene money printing by the Federal Reserve for over 20 years, and non-stop fiscal spending by the US government, including COVID-19 stimulus, has made the wealthy class rich beyond their expectations. The easy money the Fed and government provide goes into the stock market making the rich, that own stocks, filthy wealthy. It is a rigged game. One-half of Americans do not own a single share of stock.
The Federal Reserve members love to be accommodative, dovish, giving a backroom nod to the Wall Street investment banks (because most of the easy money flows into the stock market). The Fed members are rewarded with lucrative speaking engagements at the large money-center banks for their loyalty to Wall Street once they leave public life providing the quid pro quo. Isn't is sickening. It is called crony capitalism filth.
The United States is a crony capitalism filth system in its final throes. Capitalism does not exist. Most people are too stupid to understand what is happening. Others do not care. The wealthy class does understand and does not care since they have raped the financial system for all it is worth over the last six decades. It is no surprise that the divide between rich and poor now is the widest since the 1970's when similar garbage was playing out.
Still others know what is occurring but remain in denial with fingers crossed that everything will work out eventually. No it will not. You cannot fix America's crony capitalism system anymore. Everything is corrupt to the core. The debt barrels towards $40 trillion with King Donnie Chumpski spending money like a drunken sailor adding from $2 to $4 trillion in debt per year on top of that. Of course he does. He is a real estate guy. They all worship debt. The interest payments on the US debt are $1.3 trillion more than the defense budget. $10 trillion in debt has to be rolled over going forward and will continue but at a higher rate.
The reason for the unrest in society is that there is no longer a middle class. Former President Ronnie Ray-gun (his derogatory nickname during the 80's) busted the unions and set out to destroy the middle class and he succeeded. Reagan wanted to enrich his wealthy class political donors that own the companies and stock market. The lucrative middle class jobs, such as draftsmen, scientists, engineers, designers, etc..., were sent overseas to take advantage of the slave labor. A company did not want to pay a US engineer $30 per hour back then when they could hire a foreigner out of China or India at $6 bucks an hour. The lower expenses sent company stocks, that the wealthy class own, to the moon making the wealthy rich beyond measure. They control the game. Those jobs that were destroyed and sent overseas built the middle class neighborhoods across America in the 60's and 70's. It's over.
Fast forward to the 2020's and you have 30 million Americans in the wealthy class at the top that screwed the 300 million peons at the bottom; the have's and have-not's. Human greed knows no bounds, folks. Once you have a bunch of money, you can live anywhere you want in the world. As the US devolves into chaos and violence with each passing month, a wealthy person can watch it on television as they lay on a beach in Belize or the Bahamas.
The middle class was the glue that held the country together. It no longer exists so the common folks are clinging to any lifeline available to help deal with the Trumpflation especially the higher gasoline prices. Decades back, the poor and disadvantaged folks would reach out to local churches for help but many have shunned religion in the modern days distracted by technology's glitz and glamour analogous to the shiny gold bull idol in the desert.
Common folks that cannot make ends meet are reaching out to any organization that can give them a hand-up including the controversial groups like BLM, antifa, leftist billionaires, etc... This is how Hamas got a grip on Gaza and Hezbollah in Lebanon. People are struggling to survive and here comes someone that can help. It is easy to then get sucked in to their teachings and beliefs as they provide food and help. Even animals know that you do not bite the hand that feeds you.
Consumer sentiment is also in the toilet bowl due to Trumpski's daily chaos, antics such as posting little baby memes and video shorts that boost his frail ego, and war. It does not help that America used to be the shining city on the hill but King Donnie has now made the US the shining predator nation on the hill. The orange head needs content for his daily presidential reality television show that is why he creates drama and constantly comments on every little news item. As he turns 80 however, he is having difficulty keeping his lies straight.
Trumpski will berate a reporter for asking if he has a plan with the Iran War but then a meeting is held and concluded at the Whitehouse yesterday with the politicians admitting that they did not agree on a plan going forward. Isn't that wonderful? It does not matter who is president since they are all corrupt and the crony capitalism system, that cannot be fixed, is gasping its last breaths.
If people are unable to admit that capitalism does not exist, the country has zero hope. You first have to admit that you have a problem if you want to fix it, like Alcoholics Anonymous for the drunkards. All of you, please stand up. Repeat after me. "I, state your name, admit that capitalism does not exist. America is a corrupt crony capitalism filth system on its last legs." There, that was not so hard was it? Capitalism only exists in theoretical business text books but never in practice because of human greed (corruption) and non-transparency (the truth is hidden from the public). It is simple to understand. Do not fight it.
The historic low in consumer sentiment is another milepost passed on the primrose path to Hell. The key point to remember is that 300 million Americans is a bigger number than the 30 million that represent the wealthy educated docile elites that controlled the game and enriched themselves. What do you think is going to happen in the months and few years forward? As the saying goes, 'payback's a bitch'. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 6/5/26 at 6:37 PM EST: It is a mini Black Friday. The SPX collapses to 7384.
