The Temple of Inflation – where does the typical Americans spend their money? A comparison between 1986 and today.
For most people that I know the mortgage and rent payment will eat up the largest portion of a monthly budget. This is the case for the vast majority of Americans as well. Housing is the biggest line item expense on the monthly budget. For the most part people tend to think that the Federal [...]
The long debt emergency has arrived – From 1950 to 1980 total US credit market debt to GDP held a ratio of 1.5. Today that figure is above 3.5 with total US credit market debt at $54 trillion.
We are reaching a point of no return with global debt. The US will be running deficits for as far as the indebted eye can see. This isn’t a new or novel trend but the magnitude certainly is. Since we stepped on the deficits do not matter accelerator in the 1980s the US dollar has [...]
How to spend $9 trillion in 10 years. How in the financial world did we end up with over $14 trillion in Federal government debt?
If we do a slow rewind back to 2001 U.S. debt stood at $5.8 trillion. This today would seem like a bargain. So how in the world did we end up with the current $14.3 trillion figure in a matter of ten years? People like to ignore history but if you don’t know where your [...]
The Futile Act of Saving in America Today – No Money Down Car Purchases, Low Down Payment for a big Mortgage, and High Interest Credit Cards for Everyday Spending.
This recession did change spending, at least for a few months. When the recession hit Americans had a negative savings rate, the first time ever we had the ability to spend more than we actually brought in. As the recession progressed, Americans did start saving and we took the personal savings rate to 6% (this [...]
The Expanding Economics of Austerity – Home Equity Loan Ads Replaced by Brown Bag Ads. Breakfast Sales take a hit as more Unemployed Avoid eating out.
The middle class of America is adapting to the new austerity taking hold. Many are changing their habits to live in a market where credit is less accessible but others are having a hard time giving up the artifacts of the debt boom decade. However you slice the numbers average Americans are confronting a leaner [...]
Government Tax Receipts Down 20 Percent Year over Year: Wall Street Banks Earning Billions. The Unsustainable Economic Course.
The Congressional Budget Office puts out a long term analysis examining the economic health of the United States each year. In major recessions like the one we are in right now, these reports provide a projection into the future but the most important indicators like taxes are in a state of flux. It is also [...]
Financial Brinkmanship: Forcing Americans to Spend and Discouraging Savings. Americans Decide to Save Forced by a New Austerity. Banks Offering Zero Percent on Your Savings Account.
Spending more than you earn is a financially devastating recipe for individuals and nations. I’ve read countless pop financial books on how to gain and sustain wealth and those that have any substance always emphasize saving your money, spending less than you earn, and being prudent with your funds. In no book did I ever [...]
The End of the Peak Credit Era: 3 Quarters of Contracting Consumer Debt. Credit Card debt Contracts on a Year over Year Basis for First Time Ever.
There is a small silver lining in the unemployment report released on Friday. The positive side was the amount of people being fired slowed down in July (if you can call an annual rate of 3 million layoffs positive). However, there is still a major reluctance for firms to hire. We still have 26,000,000 unemployed [...]