Real Disposable Income Has First Drop Since November 2011, Savings Rate Tumbles

Tyler Durden's picture

There were no surprises in the August Personal Income and Spending numbers, which came at 0.1% and 0.5%, respectively, on expectations of a 0.2% and 0.5% rise. Summarized: less income, more spending. This however, did not make the consumer income statement data any better: the bottom line is that adjusted for inflation, Real Disposable Income slid 0.3% in August, after a tiny 0.1% increase in July, the first such decline since November 2011, and as Bloomberg's Joseph Brusuelas says this is "another rough report for the consumer which doesn’t bode well for household spending going forward." Which means Bernanke knew precisely what he was doing when he launched QE3, which all advocated of QE3 will now say was fully justified. There is one problem with that logic however: for QE3 to be justified, it would mean QE1 and 2 were. Well, last we checked the US is still in a major depression, and neither QE1, 2, nor Twist 1 or 2 have done anything to prevent today's ugly data. Surely, this time it will be different. Finally, and as a result of the ongoing contraction in income, as expected the savings rate dropped from 4.1% to 3.7%: the lowest since May.

Spot the recovery in either the Real Disposable Income...

... Or the Personal Savings Rate:

Source: BEA

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GetZeeGold's picture still dead.


Let's get our priorities straight here.



HelluvaEngineer's picture least until the next time we need to kill him

GetZeeGold's picture



Gotta hand it to him......he's a team player.


HD's picture

 Don't even joke about that. Wet, one-eyed zombie Osama is a badass...but still needs zombie dialysis.

Ying-Yang's picture

Tyler, perhaps this is a rhetorical question, but why do they count the increase in cost of gasoline purchases in the August Personal Income and Spending numbers and then exclude fuel in the Consumer Price Indexes (CPI) program which produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services.

Heh... BLS, "Been Lying Statistically" so you don't really know what's going on.

HelluvaEngineer's picture

Whoever junked me, here's an item you might be interested in:

Case XX Smooth White Bone Commemorative Trapper "We Got Him" Osama Bin Laden CA42902

W.R. Case & Sons produced this 4 1/4" closed Trapper pocket knife in commemoration of Operation Neptune Spear which resulted in the killing of the worlds most wanted terrorist.

The main clip blade is embellished "WE GOT HIM! Operation Neptune Spear". The spey blade reads "Justice Is Served".

This impressive Commemorative Case Knife comes in a presentation case asserting "We Did Not Forget 9-11-01 God Bless America". With Certificate of Authenticity.

The Alarmist's picture

Let's add a line to the case ....

"It only took $3 Trillion and a decade, but as always we got our man."

Muddy1's picture

Has the personal savings rate declined becausepeople aren't saving, o becase thebank runs have started in the US.  We read all the time about bank rns inother countries, but news about runs in the US , or large amounts of savings being withdrawn don't exist.

The Alarmist's picture

You seem to have forgotten the lines in front of certain banks in 2008, but you have a point ... FDIC has been force-merging anything remotely in danger of failing into other larger, sometimes TBTF banks.  Why have 6000 problems when you can narrow it down to 6?

LMAOLORI's picture



Just wait until December if they don't pass that Trillions dollar legislation 


RiverRoad's picture

If the personal savings rate refers only to saving in bank accounts, well natch.  Who the heck would be stupid enough to "save" in a bank?  That's oxymoronic these days.

LMAOLORI's picture



(this was news to me)

"income less outlays, means that paying down debt counts as "saving" 

Personal Income And Spending: What's That Smell?

firstdivision's picture

Personal Income M/M is approaching negative territory.  Also prior number revised much lower. Need iPhone6 and iPad4 on credit please!

Chump's picture

Found 27 cents under some papers on my dresser this morning.  This trend is looking good.

RSBriggs's picture

Unfortunately that will probably bump you up into the next tax bracket and cost you $4,000.00


Chump's picture

Gonna cost you.  Who else is going to pay for my 17 blind dependents??

I am...the 47%.

samcontrol's picture

Huge f news, first time US government backs up stem cell and LOOK what it is for. INCREDIBLE

7:31AM Cytori Therapeutics awarded contract valued up to $106 mln by Biomedical Advanced Research and Development Authority to develop cell therapies for thermal burns combined with radiation injury (CYTX) 3.86 : Co been awarded a contract that may be valued up to $106 mln by the U.S. Department of Health and Human Service's Biomedical Advanced Research and Development Authority (BARDA), if all Contract Options are executed. The Contract is for preclinical and clinical development of the Company's cell therapy for the treatment of thermal burns combined with radiation injury. The aim is to evaluate and create a new countermeasure for thermal burns which would be useful following a mass-casualty event. Under the terms of the contract, successful achievement of specified milestones will allow BARDA to review and, at its discretion, consider the execution of Options and qualify Cytori to receive up to ~$101 mln in additional funding, if completely executed, to bring the technology through the FDA approval process for thermal burns under a device-based PMA regulatory pathway.

Jason T's picture

there is a story right at the top of this page "Will Isreal Launch a False Flag Against Iran to Start War"?

new dark age coming i'm afraid..  prepare to eat squirrals like they did 80 years ago.

GubbermintWorker's picture

Glad I have my .22 sighted in!

Chump's picture

Such an underrated, fantastic caliber.  +1

Dr. Engali's picture

Just don't shoot them with buckshot. It's no fun biting down on a chunk of lead.

mayhem_korner's picture



No different than watermelon seeds, really.  Just spit 'em out.

mayhem_korner's picture



So the threat of a nuclear strike is the new rationale for stealth support of abortion?

BTW...stem cells have been in use for a very long time (see StemGenex, for example)  The premise that the US government is backing stem cells for the first time is misleading.  It's the unproven embryonic stem cells that the govt weighs in on...which is nothing more than the a wing of the abortion platform.

LawsofPhysics's picture

Exactly.  Two of my colleagues from college have been working in this area for 30+ years.  All government funded.  Stupid fucking sheep.  Good thing I like lamb.

GeezerGeek's picture

Thermal burns, huh? Has DHS been secretly been buying napalm along with all those hollow-point bullets?

scatterbrains's picture

no this is just for when those airport scanners get jammed...just a slight burn no worries.

Metalredneck's picture

Microwave based crowd control?


Coming to a bank near you...

Jason T's picture

Trickle down?  The faucet has been diverted to bankers and apple shareholders.

q99x2's picture

Ben's got the QE button reloaded and ready to go. No problem.

DormRoom's picture

Greenspan pushed down interest rates after the '01 recession, to boost the employment rate, causing bubbles.  Short term unemployment situtation was corrected, but it caused huge misallocation of resources over the medium term, causing a greater unemployment problem, after the financial collapse.  Now Bernanke has implemented QEternity to solve a short run problem, that in the medium term, could be more disastrous for the unemployed. Save a million jobs in the short run.  Lose 10M job in the medium run. Net Effect: #lostgeneration.

LawsofPhysics's picture

Correct.  Greenspan really began the destruction of the backbone of capital markets in earnest through manipulation of interest rates and hence the pricing mechanism that capitalism is built upon.

But I digress, behind all this is the fact that the world is now facing zero growth in available energy yet more people are being born and still demanding a high standard of living.  Ain't gonna happen and the laws of physics and Nature really don't give a shit.  The planet will live on, same as it ever was.

Totentänzerlied's picture

Or they could take it from us, like our ancestors took it from theirs.

LawsofPhysics's picture

Wages matter.  There two ways that the "elites" steal.  Via taxation or inflation.  At least with taxes you can question the IRS or you local official and if properly managed the money can be spent on things we all use and need.

With inflation, the money is simply stolen, low man starves and civil war is the result.

Pick you poison sheeple or the Fed (a private bank) will pick it for you and they are clearly in favor of inflation.

Address the moral hazard already.  restore real consequences  for bad behavior at all levels of society.  Capital markets are dying as interest rates are now meaningless (ZIRP and NIRP, no surprise no one is "saving") so it may be too late already.

Hedge accordingly.

insanelysane's picture

The real measure of employment/unemployment is how much tax revenue is generated.  We can have 0 unemployment but if everyone is making min wage then tax revenue is negative due to earned income credits.

It's quality and quantity.

Chump's picture

My savings are in my shed, getting ready to plant some of my other savings once the weather gets a little bit cooler.

0.25% if I keep my paper with my bank.  roflmfaolololhahahabwahahaha.

youngman's picture

But they are still confidant...happy as clams....can´t figure that one out....

RSBriggs's picture

Hey - Obama gunna bought me a cell and gunna pay my mortgage.  What's to worry bout?

the not so mighty maximiza's picture

QE infinity was just to keep the banks open and fund the goverment.  They don't give a shit about anything else.

Jlmadyson's picture

Inflation baby.

Just what the Doctor ordered.

Perdogg's picture

Actually worse, stagflation "Welcome back Carter" to 1978. In 2012, 0bama is the new Carter.

LawsofPhysics's picture

Even worse.  Look back again, how did we get out of the stagflation of the 70's?  We raised rates!!!!!!

Go ahead motherfucker, do that again, I double dog dare you.  Fucking bring it, bitchez...

j8h9's picture

AND taxes! Reagan raises taxes 11 times in his two terms.

LawsofPhysics's picture

Yes, also there was some significant wage inflation in the 70's.  What has the average wage done for ten years now? - FAIL.

Very, very, very different than the 70's and considerably more dangerous.  especially once the dollar dies.

GeezerGeek's picture

Somewhere around 1979 or 1980 the company for which I worked, a second-tier computer manufacturer (IBM was the first tier, all by itself), gave everyone a mid-year salary increase to make up for inflation. Now, annual wage cuts are more likely.

j0nx's picture

Agreed. That's why I ROFL when people claim hyperinflation. Good luck passing that shit onto wages in a global arbitrage environment. Totally different from the 70's and MUCH worse. There is absolutely ZERO mechanism for wage increases in this country short of full out government collapse and by then it won't matter anyway and will be VERY short lived.

LawsofPhysics's picture

You have been misinformed.  Hyperinflation does not require wages or the velocity of money to increase.  Ask yourself, what happens in a market when things go bidless or I refuse to even sell the commodities that I am producing because I simply decide to circle the wagons and save my own tribe.

Numerous examples of hyperinflation setting in without printing or increases in wage.  Ignore history at your own peril.