It just means Bidenomics is working.
Authored by Tom Ozimek via The Epoch Times (emphasis ours),
A significant jump in the number of Americans yanking money out of their 401(k) accounts to pay bills and buy necessities is the latest sign that the U.S. consumer is experiencing increasing levels of financial strain.
A new report from Fidelity, the nation’s largest provider of 401(k) plans, reveals a troubling trend—Americans are increasingly tapping their retirement savings in the form of hardship withdrawals and loans.
The report shows that 2.3 percent of U.S. retirement plan participants took a hardship withdrawal in the third quarter of 2023, up from 1.8 percent in the third quarter of 2022.
Top reasons given for taking a hardship withdrawal were avoiding foreclosure or eviction and covering medical expenses.
Besides hardship withdrawals, there was also an increase in the number of Americans taking loans from their retirement savings accounts, with this share growing from 2.4 percent in the third quarter of 2023 to 2.8 percent in the comparable period in the prior year.
Inflation continued to be a major concern in the third quarter, with nearly three-quarters of employees indicating that inflation was causing them stress.
The latest findings from Fidelity builds on a recent report from the Bank of America (BofA), which similarly showed that hardship withdrawals rose significantly in the third quarter, and while the BofA didn’t track the specific reasons for the withdrawals, the current state of the economy—including persistently high inflation—is a likely culprit.
Wages Not Keeping Up With Inflation
Among employed Americans, 60 percent said their incomes haven’t kept up with increases in household expenses due to inflation over the past 12 months, according to a new survey from Bankrate. That’s up from 55 percent last year.
Meanwhile, less than one-third (29 percent) said their pay has kept up with or exceeded inflation this year compared to 33 percent last year, and 11 percent say they don’t know.
“The job market has lost some of its steam since the Federal Reserve began raising interest rates to quell inflation, but not much,” Bankrate analyst Sarah Foster told The Epoch Times in an emailed statement.
“The share of workers who got a raise in the past year is matching last year’s historic levels, and more Americans are getting raises today than they were before the pandemic. Even so, inflation remains painfully high for many households, eroding those gains.
“High inflation feels a bit like taking a pay cut in itself, and it might be one reason why Americans suggest the economy isn’t as strong as it looks on paper.”
The U.S. economy grew at a 5.2 percent annualized rate in the third quarter, a forecast-beating pace that some analysts said looks better on paper than in reality because, when looked at from the income side, the data suggests momentum has waned, and growth is slowing.
While gross domestic product (GDP) grew by 5.2 percent, gross domestic income (GDI) grew at a paltry pace of 1.5 percent in the prior quarter.
Market analyst Stephanie Pomboy took to X, formerly Twitter, to note that the difference between GDP and GDI in the third quarter was the widest on record.
“Don’t Believe the Hype,” she wrote. “Widest gap between GDI and GDP in history.”
“The numbers should match and do correlate over time. But the difference between the measures is stunning,” analyst Mike Shedlock wrote in a blog post, referring to the difference between GDP and GDI.
“The key takeaway from this release is the economy likely is not humming the way media and [President Joe] Biden present,” Mr. Shedlock added.
Inflation Fears Resurge
American consumers have grown more pessimistic as inflation concerns recently surged to a 22-year high, flashing a warning sign for the U.S. economy.
The University of Michigan’s closely watched consumer sentiment gauge fell by 4 percentage points in November to a reading of 61.3 percent.
The drop marks the fourth consecutive month of declines in the sentiment measure, with the deepening confidence slump coming as the twin geopolitical crises in Ukraine and Gaza show no sign of ending anytime soon.
Meanwhile, inflation expectations jumped for both the near and long term, reflecting consumer fears that the recent easing of price pressures would be short-lived.
U.S. consumers expect inflation to average 4.5 percent over the next 12 months and 3.2 in the next five years, according to the University of Michigan survey. That’s up from the 4.2 percent and 3 percent, respectively, that consumers predicted when asked in October.
In particular, the five-year inflation expectation reading is the highest in 22 years.
“Consumers appear worried that the softening of inflation could reverse in the months and years ahead,” Joanne Hsu, University of Michigan Surveys of Consumers director, said in a statement.
The jump in inflation expectations comes despite the fact that the consumer price index (CPI), a measure of inflation, fell to 3.2 percent in October from 3.7 percent in September.
A separate measure of consumer confidence, issued by The Conference Board on Nov. 28, shows a slight improvement in sentiment, with the gauge rising to 77.8 in November from 72.7 in October.
Still, any readings below 80 in The Conference Board measure historically signal a recession within the next year, so the improvement in sentiment is limited.
Recession Warnings Abound
Recent data from October show that while 69 percent of U.S. consumers expect a recession over the next 12 months, a whopping 84 percent of C-suite executives believe a contraction will materialize.
While there’s been some encouraging economic data since then, including on employment and inflation, it’s unlikely the numbers have changed all that much in the past two months—at least if JPMorgan CEO Jamie Dimon’s recent remarks are anything to go by.
Mr. Dimon recently warned that inflation could accelerate again and that a recession could well hit the country if the Federal Reserve raises interest rates in response to resurging price pressures.
“A lot of things out there are dangerous and inflationary. Be prepared,” Mr. Dimon said at the 2023 New York Times DealBook Summit in New York on Nov. 29.
Mr. Dimon said that geopolitical tensions and the energy transition were prompting governments to ramp up spending, which is inflationary. If a new inflationary spike were to materialize, this would pressure the Fed to raise interest rates further, which could tip the economy into a downturn.
“Interest rates may go up, and that might lead to recession,” Mr. Dimon said while expressing caution about the economy, especially the effect that inflation has had on U.S. households.
Like other business leaders before him, Mr. Dimon said that stimulus cash doled out during the COVID-19 pandemic bolstered consumer spending and propped up the economy, but its effects are fading.
He added that the Fed’s fast pace of raising interest rates (which went from zero to more than 5 percent at the quickest pace since the 1980s), along with a reversal of its quantitative easing program, were putting a squeeze on the economy and consumers.
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While we watch the record gold price go up and then get manipulated down , just look at what the premium spreads are. The price is X , but you can’t actually buy any for that price. The supply and demand price is much higher.
Dealer’s gotta make a buck, otherwise it would be that much harder for you to get any. Premiums weren’t too bad on 1 oz coins when I bought some earlier this year, but if you want smaller coins (which I did), the premium becomes downright extortionate the smaller you go.
Believe it or not IMO the junk silver I “bid” on at ebay for several years about pre 2014 were not “bad” deals. My rule of thumb was 6% over spot and that included shipping. Beside the point, fuck ebay anymore.
The paper market has been allowed to proceed for the purpose of the desire to better manipulate that price. They have succeeded to date. Gold is at a minimum 30% cheaper in fiat than it was three years ago, almost certainly more. My understanding is that many paper contracts no longer guarantee delivery of physical.
Stop being poors
“Inflation Is Your Fault” And Other Self-Loathing Liberal Lies
The Atlantic sat by and watched the Fed print trillions of dollars then blamed the result of their actions on America’s middle class. Even for a liberal rag, that’s a new low.
quoththeraven.substack.com/p/inflation-is-your-fault-and-other
Whoever wrote that Atlantic article deserves to be whipped with a knotted plow line.
The facts are, that to a large extent, inflation is the fault of the consumers. You may not want to hear that, but it is the truth. If you do not believe that, then you do not understand how inflation is created.
Inflation is a function of paying more for goods and services than the previous price, or the regular price. Every credit purchase increases the cost of the items purchased, in addition to creating money at the point of purchase. There is no difference in a bank creating money by giving a loan, and a consumer creating money by making a credit card purchase.
Government also makes credit purchases, but not to the same extent the consumers do.
Were the entire population to cut up their credit cards, the inflation rate would drop to near nothing, as it was prior to the 1970’s when credit card became common.
If you want to stop inflation, it is as simple as taking the scissors to you credit cards….
Really? How do you explain the Great Depression then? How do you explain that prior to FJB taking over inflation remained low? There was just as many CC then as now.The Atlantic is full of crap. Inflation is a symptom of creating money out of thin air. The American citizen is in the process of being destroyed according to plan. Inflation started with printing trillions of dollars to hand out. Doesn’t matter what Powell does. The Government is still spending like…well even a drunken sailor doesn’t spend like this. It’s a one two punch. Raising interest rates is squeezing the consumer on one side (those foolish enough to take out excessive debt) and out of control government spending is driving prices up hitting the consumer on the other. You will own nothing and be happy…or else.
Well_Inever,
You’re both correct. Let me ask you this…
If everyone suddenly got a 10% raise but saved that 10%, would those raises cause inflation?
I see where you’re going. In regards to your question of course not. Would that ever happen? Of course not. Prior to the FR, standards of living continued to go up. The FR was created to steal the value of your currency (its not even money). So you can imagine anything you want but it is what it is.
I guess my point is that The Atlantic is one of the mouthpieces for the parasitic class. They don’t want you spending money so that they can steal it through their inflation.
Yes – your scenario would cause inflation of asset prices in the stock market, if you mean save = invest. But if they stuffed that 10% under the mattress, not so much.
No.
The amount of fiat one holds or spends has a possible effect on local prices but it has no effect on inflation. Inflation is only and always caused by an increase in the supply of money. That’s why governments hate gold and hoard it at the same time.
You are talking out both sides of your face. The Great Depression is a different situation not relevant to what we are discussing.
Inflation was not low prior to FJB, it was high, but it went crazy after the Government gave everyone a few grand making them feel rich so they went out and spent money like they actually were.
Historically, if you look at credit based spending, it began picking up in the 1970’s when credit cards became available to regular working people. Prior to that, credit cards were only available to higher wealth individuals. They were actually a status symbol.
You can blame government all you want, but the real source of inflation is credit, and that means the blame for inflation lies with the people buying on credit.
The Great Depression was the result of people buying stocks on margin (it’s the classic pump and dump which you see unfolding right now), there were no credit cards at that time. Credit did exist all throughout humanity. A person could go to a trading post or general store and buy items on credit. Of course it was up to the store owner and if you weren’t credible you wouldn’t get the items.
The Federal Reserve is NOT part of the USG. It’s an independent bank owned by shareholders. “It’s a big club and you ain’t in it.” None of us are.
As mentioned in my above comment The Atlantic is the parasites, (who also own the FR ) mouth piece. What they are telling you is to STFU and get used to being poor. I can’t put it any plainer than that.
The great depression was not a single cause event. The industrial revolution and the creation of the Federal Reserve created a credit driven environment much like what we have today. People were going deep into debt for everything from real estate to stocks to all the modern marvels like cars, and electric appliances. They were living way over their incomes and using debt to finance it. When the crash came, billions of dollars disappeared by money destruction, which is the revaluation of assets, and the default of debt. The generation that lived through that learned the dangers of debt, and avoided it to the greatest degree possible. Their decedent’s however are just as foolish as the generation that caused the Great Depression.
No.
Inflation is from money out of thin air no matter what process is used. The paying of govt benefits, grants, and checks is the biggest source right now.
But I want “things”, I want “things”…
There it is.. American’s are spoiled and entitled, and will destroy their futures to get what they want right now…. Then they will blame someone else, because the last thing people ever do is take responsibility for their own position in life….
The “entitlement” shit, the “world owes me” , the victimization card and it’s always someone else’s fault just blows my fucking mind. I was not raised like that. My dad:
1) You do not rape women
2) You do not steal
3) The world owes you nothing.
Sometimes #3 would be , The world does not owe you a damned thing.
Consumer spending causes inflation like spoons cause fat people.
So you are an idiot and an asshole. Congratulation’s, you are the typical American….
You will probably also die broke, because you do not know the first thing about money or economics.
Well, it’s looking like I may die with no debt. I’m just going to go lie down in the forest when the time comes and die and let the vultures have a meal with no outrageous fiat obligation in medical expenses or funeral arrangements for anyone. I suppose the way things are going my home will have some “value” , however inflated, so that the heirs can have all that shit.
I do not think you understand either what nonny said or what inflation is or, possibly both.
Inflation is only and always an increase in the money supply. That is a quote from an old dead white economist of great repute. And he’s right.
It’s the same economics as the dystopian sexual marketplace: “Be attractive, don’t be unattractive”.
Shit, I do that anyway.
For real.
I know a woman worth millions who washed and saves her pie tins.
That is why she got rich. It is your habits that either make you rich or poor.
My dumb-ass boomer dad washes out generic trash bags, after dumping them out at the dump, and air dries them to be re-used. This same idiot eats out 5 days/ week at Applebee’s and wastes his money on their microwave garbage!
I don’t save bacon grease but I do Sandford and Son at my precinct dump. Well organized as useful metal products, T-posts, mesh wire, chain link fence posts etc. etc. are placed in an accessible dumpster. Amazing what people throw away. The anal person that managed that and took my money for household trash told me he could not allow me to pick stuff out for “liability” reasons. I asked the precinct commissioner about that and was told if I saw something I could use get it. The anal guy retired praise the Lord.
I discussed the situation of rescuing usable items with the new guy and he just laughed and said the anal dude just wanted everything for himself. I’m not “proud” in the fucking least. The prices on things I pick out that are perfectly usable I simply cannot imagine the cost of acquiring them new. I’ve picked gobs of used fencing wire of various types that have served perfectly well for trellises in the garden. Other things too, perfectly good wooden tables, benches, you name it, for work benches in the shop. I just dust them off and wipe them down good then apply a coat of Cabot Australian Timber Oil. I cannot find any timber oil at the dump so I have to pay retail for it. Highly recommended for decks and anything wood BTW. Yep high dollar product anymore.
I picked out four perfectly usable “dog kennel” cages, one small, two medium and a large. The manufacturer’s name and bar code was still attached to one of the medium cages. I searched on Al Gore’s Internet and Tractor Supply had it for $117.
Signed me not proud, me simply trying to survive until its over.
Hey Tex, there’s nothing wrong with what you’re doing. Bacon grease today isn’t the same as when our parents saved it. It’s my understanding it’s full of toxins. I still use it in limited amounts and keep some in the freezer. I think it’d be a good fire starter, of course you may have to fight off some bears.
Watched a video of people dumpster diving in Dollar General dumpsters. They pulled out a lot of good stuff. The dumpsters aren’t filthy either as they don’t throw out unpackaged food. I thought about doing it myself. As far as surviving until this is over…I doubt you’ll live that long.
Appreciate that. lol
I ain’t proud. Always on the look out for five gallon buckets that have blown out of peeps pickups along the roads. I can always find a use for a five gallon bucket if nothing else for trash cans around the barn and shop, plus, I collect rain water in them. I really do have a gold mine in usable things people throw away and I’m not in a “ultra economic” area so rather surprised people don’t find a use for the things I pick up at the dump.
The dump is not like big city dump that smells like a pig farm. Household garbage must be in bags and well, it’s just not a big time dump so while I have seen some flies they ain’t obnoxious. All of it is hauled off to some other dump that likely does smell like a pig farm.
Last week I saw some tops like from big wire spools. Just the round tops so I’m thinking since I’m wanting to build another shooting bench I’ll get one, about 36″ diameter. Hidden under some brush in what was destined to be burned at the precinct dump was a table top 48″ in diameter of 1-1/4 inch plywood. It is perfectly preserved ancient plywood with a bad ass formica laminate top. I guess it came from some bar or eating place. Priced 1-1/4 inch plywood lately? I don’t know what I’ll do with it but I got it and it is so heavy I had ask my friend that manages the facility to help me load it. Good times at that place.
You have learned and applied the tactics of guerilla economics, As have I. Kudos.
You want to know how wars start? Try capturing and saving all of the cow farts from your neighbors cow for a year to come up with the carbon down payment for that tesla only to find out they don’t even make them in green.
“What kind of tea is this?”
The smartest thing Americans could do at this point is pay the penalty and melt down their 401k and pay off their mortgage. These 401k’s will be vaporized anyway when TPTB pops the contrived and orchestrated everything bubble, so at least they will get something out of the deal. How much better would their monthly budget look without that big mortgage payment going out?
you aren’t wrong.
All that digital savings and fiat currency will go poof!! gone.
Best is to do what you stated, imo. Swap out those digital savings for tangible assets that can be traded or later converted to trade.
Once these satanic cultists have robbed the treasuries to crumbs is when it all collpses. Then it will be to late to save anything not tied to the banks or wall street.
You’ll own nothing and they’ll tell you to be happy.
“They’ll get it all.”
All that digital savings and fiat currency will go poof!! gone.
Yep , that seems to be the kicker. Gold IRA? Fiat. Some folks got it all figured out , the number crunching and all. And precious metal “values” are calculated in dollars at least in the US. I’m glad to be an American where at least I know I’m free. lol
I hear you BL. Personally I don’t have a mortgage and planned it that way. I still have an IRA converted from the corporate 401k game and if it gets ripped , well, it gets ripped. I’ve done so for tax reasons and if anything is left when the “mandatory” withdrawal comes around my “income” is pretty much piss poor ( not crying in the least) so I don’t expect from my calculations I’ll pay tax on that or very little. Of course EVERTHING is subject to change. It may come down to the point if one “owns” a home (paying “rent” via property tax unconsidered) the fucking government may demand the home outright in order to pay one’s taxes. And it ain’t gonna be any different with The Great One. In fact one might experience eminent domain for private gain via the COURT SYSTEM. Ain’t that some shit using the COURT SYSTEM in order to line one’s pocket by stealing other’s things.
Better to spend it now before it’s totally worthless.
I might just do this to my little 401k. The hardship being the price of tractors. Or .308. Or ribeyes. But given the trajectory of clown and the fact that whatever reality creeps into the markets is going to “correct” them well beyond the 10% fisting by uncle Samantha for a fedponzi coitus interruptus, well it might make sense to get plowing now and beat the rush to the bottom.
I plan to retire on my pureblood stock.
LOL.
The democrat party had no problem stealing 300 billion from Russia.
When they steal your IRA ………………remember that.
FUCK the democrats, FUCK the RepublicOns. Just saying…
Fuck’em all and if you get any photos send them to Larry Flynt c/o Hades.
As we say back home, fuck ’em and feed ’em fish heads.
That’s what a good friend use to say back home. lol
It has been reported lately that some banks — I believe in the UK — have been denying requests by their depositors for immediate withdrawal of their deposits.
Wait until that hits people’s 401ks and such … and, of course, if the EBT cards ever fail to get charged on time …
Didn’t read. I DON’T CARE.
Did Michael Snyder just get a kid brother? Heritage Americans and other heritage Westerns are sheep fit to be genocided, which is fappening at Fabian speed right before our very eyes. One thing about Roman History popped into my mind some days ago. Once the ‘Roman citizens’ were on bread and circus, did they ever revolt? The second and last Gracchi was assassinated in 121 B.C., which must have made bread and circus (to come?) attractive enough. Let’s suppose that bread and circus started in the early first century B.C. When did Romans revolt against their government? I don’t mean when did they side with one general over another in a civil war. I mean when did rank-and-file ‘Roman citizens’ take it to the Roman elite for real?
It seems to me NEVER. Look around. You got your food stamps or EBT. You got your sportsball. The NFL officiating is so pathetic the NFL is not a real sports league: it is a leading propaganda platform run by Roger Goodell for the tidy sum of $60 million a year, allegedly. He’s not worth that as a sport’s league administrator. And you nitwits think the Fourth Turning is still on. lmfao
It does not matter what abuses the U.S. Government heaps upon the American people, and I use the term ‘people’ loosely, because they NEED government to elevate them in herd status to the station of the boogey white man who created globalism and hegemony and who instructed the lesser people of the world on how less accomplished they had always been—UNTIL NOW.
Education et al. has be (((transmogrified))) into the superiority of everyone not a traditional white person, which of course makes white people a stepping stone. Really it is government holding high the human garbage. What woman would choose patriarchy over more government corruption? What black American would choose Jim Crow over more government corruption? What homo would choose heterosexually normative society over government corruption? What patriot would choose individual freedom, risk, and accountability over more government corruption? What herd animal? Abstract Jesus is the Almighty Shepherd. Romans 13. We definitely have a Y2K problem. I think history is clear. We fucked. This shit don’t hunt incorporated authority, though it talks a big game.
So like I said, I don’t care how bad things get for my traitorous, lying, complicit, base fellow Americans. Why? Because THEY DON’T CARE! They are stupid domesticated herd animals. They are not capable of being people, so they are not a country. But watch the spectacle. Hoe, hum. That ancient Roman gene pool was mostly a dead end. Who are the German barbarians that will reinvigorate the West? I expect history and humanity to be in the doldrums for a very long time.
P.S. I will repeat my warning. This sudden anti-Semitism with full lock-step support from the Democrat Party is a ruse. I believe the uniparty will suddenly and thoroughly make the self-declared enemy of master pay. They must learn from each invasion cycle what sort of people and thinking they must destroy and how to do it. The NWO must have depopulation as part of their victorious exit strategy or they can’t rule after the collapse they make inescapable. The Georgia Guidestones were destroyed, our government authorities are ostensibly baffled, and the insulting monument will not be rebuilt. Sequencing is key with this method of warfare. We are watching a clinic in slow motion. I hate herd animal humans. They are the bane of civilization, and a plentiful resource of the enemy cabal. If you don’t like this analysis, let me give it to you straight on your terms. BAAAAAH.
It’s coming! I missed the date and thought it would be October, but it’s still coming.
A house in a place I very much want to live is for sale. Beautiful home but I think it is about 20% overpriced. Today I see they are having an open house. That would not be happening if they already had enough interest in the property. Actually, no other property I’ve been watching for nearly a year has ever had an open house and was sold quickly.
Just need to be a little more patient and “not fire until I see the whites of their eyes” in financial terms.
Yep it’s coming. People won’t stay still for long.
GDP growth minus inflation rate= growth rate. If government spending is included in GDP (which it almost always is, for reasons) borrowing and related finance costs must be subtracted as well. The real economy has been shrinking since the current sock puppet in chief was installed by the deep state, possibly, likely, prior. Look for evidence in the trucking industry, among others.