As consumer inflation approaches 10%, payroll taxes increased and unemployment is 23%, how much more pain will it take for the American people to wake up? I have no faith in a federal reserve note and am converting this fiat currency to things that actually have value. This strategy has protected us from inflation and made impressive gains vs. the stock market. As for people “socking away less money in the bank” as noted in the article below: who would want an annual rate of interest of 0.001%?
Consumer spending only rose in January due to the ravages of inflation for food and gasoline. When will the economic collapse that has been foretold start? You are looking at it.
David DeGerolamo
Consumer Spending in U.S. Climbs Even as Taxes Hurt Incomes
Consumer spending in the U.S. rose in January even as incomes dropped by the most in 20 years, showing households were weathering the payroll-tax increase by socking away less money in the bank.
Household purchases, which account for about 70 percent of the economy, climbed 0.2 percent after a 0.1 percent gain the prior month, a Commerce Department report showed today in Washington. The median estimate in a Bloomberg survey of 76 economists called for a 0.2 percent advance. Incomes slumped 3.6 percent, sending the saving rate down to the lowest level since November 2007.
Employment gains, the rebound in housing and growing demand for autos will probably keep supporting consumer spending in the first quarter as the world’s largest economy picks up from an end-of-year slowdown. Even so, rising gasoline prices and the need to rebuild nest eggs may make it difficult for households to match last quarter’s performance.
