What's With the Guns?

I read some fascinating information today about the rise in gun sales in the USA. Already this quarter, FBI background checks are up 16% over last year's first quarter. That is, 4.25 million requests. At the current pace, it will be the seventh year in a row of record high gun sales. The increase in gun sales is out stripping normal consumer spending increases by 4 times.

Now, let's jump over to Wal-Mart for a moment. Economists have used Wal-Mart trends to gauge the economy for many years already. They have concluded that the average Wal-Mart shopper lives pay cheque to pay cheque. Thus, when end of the month spending in Wal-Mart is down, they know that the average consumer is running out of money before they run out of month. Wal-Mart has had 7 straight quarters of sales declines. It is an economic indicator that does not bode well for the average American.

Here is the connection. Not one to miss out on current spending trends, Wal-Mart has announced that it will once again be selling guns in their outlets. Can't blame them for wanting to get in on the action.

But there is still the question as to why 14 million last year, and 16 million people this year are out to buy handguns. As Eric Fry of "The Daily Reckoning" says, every buyer has a different motive, but all have the same objective, and that is to arm themselves. Add this to unprecedented numbers of people buying and holding gold, and you have unprecedented numbers of people feeling uneasy. What do they feel is just around the corner?