Consumer spending jumped 0.8% in May, largely driven by the income tax rebates, though one wonders how much of that spending went into people’s gas tanks.

What’s more, given that oil hitting a new record, even if retail gasoline is edging a bit lower, it’s highly unlikely that the giant sucking sound coming from our cars will change.

What’s more, this is continuing to drive the dollar lower.

At the core of the American economy, we have been living beyond our means for many years, and there will be some painful adjustments.