I start off with a quote from John Williams of Shadow Stats
“Consumers simply cannot make ends meet. Inflation-adjusted, or real, median household income declined for the fourth-straight year, plunging to its lowest level since 1995. Deflated by the CPI-U, the 2011 reading actually stood below levels seen in the late-1960s and early-1970s.”
“At the same time, despite the ongoing nature of the economic and systemic-solvency crises, and the effects of the 2008 financial panic, income dispersion—the movement of income away from the middle towards both high- and low-level extremes—has hit a record high, instead of moderating, as might be expected during periods of financial distress. Extremes in income dispersion usually foreshadow financial-market and economic calamities. With the current circumstance at a record extreme, and well above levels estimated to have prevailed before the 1929 stock-market crash and the Great Depression, increasingly difficult times are likely for the next several years.”
I've been saying all along that the blame for this surge in American's debt has not been in the majority caused by runaway buying of toys. Sure some of it was but not the biggest contributor to consumer debt..
BELOW ARE THREE GRAPHS THAT SHOW YOU WHAT HAS HAPPENED.
Let me see if I got this right, wages have been going down, while inflation is going up, and 71% of the people make less than 50K.
Consumer debt has risen. Do you notice the likeness of the curves between inflation and consumer debt....
Cost of everything has gone thru the roof , mean times in the halls of Wall Street they are cooking up schemes to bankrupt the world while they get filthy ass rich...They get done with one bubble and then they blow the next.. Internet ,housing,cars, credit. Bang were broke and up against the wall..
The saddest of all tales is they ran up the cost of housing by convincing you that house prices would go up forever, and suddenly they were falling like a rock leaving you holding nothing or a house so far under water you won't ever get out from under it..
They the sweet darlings get your credit card maxed out and then slam you with 30% interest, late fees, etc.. another debt you will not get out from under...
There's not but one viable reason for the common man..Just walk away from it all.. go bankrupt on the lot... yeah you'll still have student loans and other little nice things they have protected,, Themselves mostly.. But you will be out there with nothing and no credit... Stop and think a minute , how long do you think you would be without credit if everyone did this... Magically everyone would get a new credit line, because without you they don' make tons of new money.. They have credit default swaps out there that would replace their losses, rich own the swaps.. So off we go again.
So what you see here is how we got into this mess and the only way I see out of it..We shall see where we go..