Posted on 01/07/2023 8:41:52 AM PST by Kaiser8408a
US headline inflation began to soar as soon as Joe Biden became President. A combination of massive stimulus spending related to the Covid economic shutdown and his war on fossil fuels, driving up gasoline and diesel fuel prices. In other words, headline inflation rose from 1.4% Year-over-year (YoY) at the end of December 2020 to 9.1% YoY in June 2021. It has now simmered down to 7.1% YoY as The Fed continues to remove monetary stimulus.
How have consumers coped with inflation caused by massive Federal spending and Biden’s anti-fossil fuel policies? In November, personal savings dropped -64.8% YoY. This marks 20 straight months of declining personal savings.
US M2 Money growth YoY is now … 0%. That is the lowest in US history.
Wow, when The Fed puts its foot on the brakes, …
(Excerpt) Read more at confoundedinterest.net ...
I heard recently..”69% of Americans have less than $1,000 in savings. “ “45% have NO savings.”
Butt, butt, butt.....branDUHn said.....
I helped. I bought another house. Better to have a hard asset than cash in inflationary times.
what happens when Americans have spent all their savings?
Savings? No capice!
If their savings are down 64.8%, that means they only have $352 left. And for those who had no savings? Not sure where they fit in to this statistic.
Interest rates paid to depositors should exceed Walmart price increases on average.
“what happens when Americans have spent all their savings?”
They have to live within their means.
Stores don’t seem to mind increasing prices by 10% or even more.
An item might go from $2.48 to $2.84 in one leap.
“Interest rates paid to depositors should exceed Walmart price increases on average.”
Communists do that. Doesn’t work though.
“They have to live within their means.”
In the USA:
They have to live within their means (and that of the communist Congress).
What doesn’t work well is ever decreasing retiree buying power.
I’m reminded of the old Will Rogers saying:
“If Stupid got us here, why can’t Stupid get us out?
“Communists do that.”
Where and when did they ever do that?
The question is in the definitions used for savings. Does that include 401K or any deferred accounts? Usually it mean bank savings accounts or some other very specific behavior. Not saying we aren’t screwed, we are, but these stories ‘ words have definitions.
Better to have a hard asset than cash in inflationary times.
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Yes, all the way up to the crash/correction, then it’s the opposite.
Everywhere. That’s why their economies are one way - down.
Capitalist economies go up and down, expansion and contraction. When the economy is good and booming, people live like it will never end. Then the cycle turns and they are in trouble. This was obvious to me before I turned 30. Most people never figure it out, hence the screaming whenever the economy isn’t booming.
Trump massively increased the US debt and spending. Inflation was a Trump-Biden 1,2 punch
According to Motley Fool, the average retirement savings for Americans was $65,000 in 2019. Undoubtedly, it is far less today.
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