Tag: real disposable income

Fox News – “ominous Great Depression warning”

Guest Post by Martin Armstrong

Fox Business is reporting that economic conditions are much worse than you are being told.  Unfortunately, this is the conclusion when you have ZERO understanding of the historical trends and economic conditions. It is true that the shortages of COVID have caused prices to rise faster than economic growth and most incomes.  Therefore, they conclude that our standard of living has been rapidly declining.  The number reveals that more than one-third of all U.S. young adults are being supported in part by their parents. Thanks to COVID, this disrupted society far greater than anyone is reporting. In addition to the shortages because of the lockdowns, by the end of 2020, more than half of young adults in America were living with one or both parents. That statistic actually exceeded the record high of the Great Depression.

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We Just Witnessed An Economic Sign That Hasn’t Happened Since The Peak Of The Great Depression In 1932

Authored by Michael Snyder via The Economic Collapse blog,

Economic conditions are much worse than you are being told.  Throughout the past year, prices have been rising much faster than most of our incomes have.  As a result, our standard of living has been rapidly declining.  It has become increasingly difficult for U.S. households to make it from month to month, and as you will see below, more than a third of all U.S. adults are actually relying on their parents to pay at least some of their bills at this point.

But even more alarming is what has been happening to real disposable income.  According to Fox Business, the most recent GDP report revealed that the decline in real disposable income that we witnessed in 2022 was the largest that has been measured since 1932…

The most troubling information in the GDP report is the precipitous drop in real disposable income, which fell over $1 trillion in 2022.

For context, this is the second-largest percentage drop in real disposable income ever, behind only 1932, the worst year of the Great Depression.

Just think about that for a moment.

Continue reading “We Just Witnessed An Economic Sign That Hasn’t Happened Since The Peak Of The Great Depression In 1932”

BEST ECONOMY EVAH!!!!

Never ending covid infected basement dummy and his lesbian black diversity hire bubble headed bimbo press secretary keep blathering about our great economy and tremendous jobs market, as they desperately try to convince the ignorant masses they aren’t really drowning under the strain of a rampant stagflationary depression.

Everyone knows they are lying and having their left-wing media mouthpieces supporting their lies is useless. The chart below explains our current situation. Real disposable income (after inflation) has been down or flat for 15 months in a row. It’s amazing how stimmies made millions feel rich for about a year. The Fed printing fiat and the government dispensing it as fast as it was printed created the illusion of wealth. Now we sit down to a banquet of consequences.

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Real Personal Income Down 20% from One Year Ago

Via Brownstone Institute

by David Stockman

Well, here’s another shocker. This Commerce Department report showed that real disposable personal income in March came in at -19.9% versus March 2021.

That staggering shrinkage, of course, is still another testimony to the old saw about “what goes around, comes around.” That is, last March real disposable incomes soared by nearly 29% owing to the massive Biden stimulus payments. But since then inflation has blasted skyward, even as Washington has run out of nerve on the fiscal stimulus front.

Y/Y Change In Real Disposable Income,February 2020 to March 2022 Continue reading “Real Personal Income Down 20% from One Year Ago”

BREAKING BAD (DEBT) – EPISODE ONE

“At this juncture, the impact on the broader economy and financial markets of the problems in the subprime market seems likely to be contained.” – Fed chairman, Ben Bernanke, Congressional testimony, March, 2007

“Capitalism without financial failure is not capitalism at all, but a kind of socialism for the rich.” – James Grant, Grant’s Interest Rate Observer

The Federal Reserve issued their fourth quarter Report on Household Debt and Credit last week to the sounds of silence in the mainstream media. There were minor press releases issued by the “professional” financial journalists regurgitating the Federal Reserve’s storyline. Actual analysis, connecting the dots, describing how the massive issuance of student loan and auto loan debt has produced a fake economic recovery, and how the accelerating default rates in auto loans and student loans will produce the next subprime debt implosion, were nowhere to be seen on CNBC, Bloomberg, the WSJ, or any other status quo propaganda media outlet. Their job is not to analyze or seek truth. Their job is to keep their government patrons and Wall Street advertisers happy, while keeping the masses sedated, misinformed, and pliable.

Luckily, the government hasn’t gained complete control over the internet yet, so dozens of truth telling blogs have done a phenomenal job zeroing in on the surge in defaults. The data in the report tells a multitude of tales conflicting with the “official story” sold to the public. The austerity storyline, economic recovery storyline, housing recovery storyline, and strong auto market storyline are all revealed to be fraudulent by the data in the report. Total household debt grew by $117 billion in the fourth quarter and $306 billion for the all of 2014. Non-housing debt in the 4th quarter of 2008, just as the last subprime debt created financial implosion began, was $2.71 trillion. After six years of supposed consumer austerity, total non-housing debt stands at a record $3.15 trillion. This is after hundreds of billions of the $2.71 trillion were written off and foisted upon the backs of taxpayers, by the Wall Street banks and their puppets at the Federal Reserve.

The corporate media talking heads cheer every increase in consumer debt as proof of economic recovery. In reality every increase in consumer debt is just another step towards another far worse economic breakdown. And the reason is simple. Real median household income is still below 1989 levels. The average American family hasn’t seen their income go up in 25 years. What they did see was their chains of debt get unbearably heavy. Non-housing consumer debt (credit card, auto, student loan, other) was $800 billion in 1989.

Continue reading “BREAKING BAD (DEBT) – EPISODE ONE”

YOU ARE HERE

This chart from Charles Hugh Smith tells it all. If you were wondering why retailers are closing thousands of stores, look no further. People can’t buy shit without money. It is actually much worse than revealed on this chart. Charles is using the government faked CPI to generate the Real disposable income. Contrast the information on this chart with Wall Street banks and corporate America reporting all-time record profits and Wall Street paying out $26.7 billion in bonuses for 2013. Do you think there is a disconnect? How much longer can this go on?