The reported data showed that income is growing at a much slower pace, seeing the slowing economic activity pinning profits for businesses, and as well a weakening labor market, the 0.3% gain on the month is literally weak considered that it was also backed by one time gains like bonuses, this month's gains come after income rose 0.5% in December.

Meanwhile spending rose 0.4% which at the first glance sparks hope in all beholders, yet to that I say hold your horses, as first households are so caught up behind from surging price, especially energy and food, as they are spending their savings which at current rates is -0.1%; while adjusting spending to inflation, which the Fed sees of no problem at this stage the equation gives you one reading which is FLAT!

If consumers fail to spend at this rate and are digging into what they have left of savings after the crash in the housing market already ate through it, we are now where near sighting any support to economic activity. After the GDP for the last three months of the year was left unrevised with modest rise of 0.6% we expect then the economy not to expand at current rates in the first three months of the year!

Now as for the feds cherished inflationary measure the core PCE rose 0.3% on the month for the previous rise of 0.2% which is the most in four months, while on the year it remained intact at previous levels of 2.2%; heating inflation is actually eroding the dollar's purchasing power and more indicative measures was fed to us through consumer and producer prices.

The feds according to Bernanke's testimony in the past two days, are not in position to worry about inflation, well reading from the heart of the economy beg to differ and to that here is what I have to say; stagflation is one worrisome aspect and if they are not considering that then the detected instant reaction is what the market has went through reflecting this week shredding the dollar to record low, and the Federal Reserve by that have indicated to them that they are at a stage of slashing rates to save the economy for their inconsideration about inflation is translated into one option, which is profound worse recession in decades as a profound slowing in economic expansion will be capable of depressing inflation!!!

Awaited spring induced stimulus currently seems aimless, as growing talk in the market that households will be more keen to saving it is proving to be a high possibility since inflation, housing, and unemployment have forced them to seek their savings and money granted will be used to cover the dent they already caused.

The industrial sector has nothing better to say to defend the economy as well today, as the February Chicago PMI came well below expansion marginal levels at 44.5 projecting to us hell's doors that are to follow next week from the more accounted for ISM index; and clearly from now I can soundly say to you, do not expect much of the nonfarm next Friday, as the employment sub-index fell to 33.5 from the previous month's levels of 47.0, while all other sub-components were BELOW 50 expect prices paid which was also lower since business is slowing now at 79.4 from 81.7 previous! Above it all consumer sentiment is still on the falls, and frankly WHO BLAMES THEM the Michigan sentiment index thought revised higher slightly to 70.0 yet still down from the previous month which was at 78.4, yet remains at more than a decade low

The conclusion is easy to you reader, the American economy is history, doomed, devastated, rates are going much lower and the dollar is sinking in dark blue deep seas which no one handing even a wooden shredded stick for it to float on, as the yen at 103.82 clearly is an obvious indication to what I am conveying to you…