U.S. personal income fell 3.6% in January from December, the largest drop since January 1993 and a steeper decline than the 2.2% expected. Spending rose 0.2% during the month, in line with estimates, while the personal savings rate fell to 2.4%, the lowest since November 2007.
I had received that fox business news article from an accountant friend, who knows what he’s talking about. His comments were,
“Although the major networks didn’t mention this…this is a fairly big problem and an indicator of the future economy. Less income, more spending, and less savings…”
Then I sent it out to get some feedback, before putting it up. You may have seen it. But you may not have seen it.
Responses ranged from:
“Hard to save what you don’t have…”
“If this trend continues, it’s almost over…”
Yes, it is almost over. Expect an American form of austerity in the coming months. But don’t expect it to be like what the Europeans are experiencing right now.
TPTwB (as Dio puts it) are busy experimenting with Portugal. You can read about that yourself. They do so after already observing the Greeks. If all goes well (a few large riots, some damage, but little blood spilled) they will move to the other European countries. Portugal is phase two, in a two-phase study, and it will go the same as Greece. Those fools are unarmed, and although they do have weapons, they don’t have the capability to rise up in any meaningful way. TPTwB “over there” knows this.
Our politicians, with their Kenyan King, will not do like the Europeans. They have other plans for us. This one is focused not on keeping the lid on us. That would be hard to do, but would not give their abettors the juice they need. They must go further. They must drive our very wealth out of us. One dollar at a time. They must break us.
Yes, taxes will continue to increase (Texas is already trying to eliminate ag exemptions), leading to property forfeitures. Food prices will continue to rise, health care will explode, and interest rates will be artificially held down.
While all of this would be enough to bleed us, there is another dimension to consider. What this has, in effect, done is to drive people (looking to make up for the losses) into a severely ballooned stock market.
And it is there that they will strike us.
What do you think will happen when the DOW, now at 14,000+, drops off to less than 5,000 overnight? Clearly 80% of all savings will be immediately wiped out. Taken (stolen) from us. No one will escape this time. This is not the 1930’s. Just about every worker in America is engaged, in some form or fashion, with the stock markets. Some don’t even know it!
They will know it. When they wake up to find out that they are truly broke. Remember MF Global? The coming collapse will make all of us depositors in that Democrat (Corzine) managed bank.
After all, what is the United States today but exactly that? One, great big, Democrat Managed Bank.
Europe might experience civil upheavals (beginning as soon as this April) that will last for months, but the U.S. will enter the Dark Ages. And that suits our current leadership just fine.