The US Government Just "Adjusted" Away $40 Billion In Real Disposable Income

Tyler Durden's picture

Perhaps the Bureau of Economic Analysis was hoping that today's cornucopia of ugly income and spending data would be enough for those who keep track of the US government's Department of Truth shennanigans and ignore the meat behind the numbers. Whatever the reason, the real story in today's Personal Spending data was not the consumer weakness, but the unceremonious revision of historical data, which as the chart below mysteriously whacked away a whopping $40 billion in real (i.e., inflation adjusted) disposable income. Because as the chart below shows, somehow, somewhere starting in March and continuing through the last month just before the election (the September data was released on October 29 or a week before Obama's reelection), $40 billion in cumulative disposable income evaporated. Where it went, and/or why it had been counted in the first place is anyone's guess. But one thing is certain: 0.25% of annualized GDP was just whacked away. One wonders: how many more such retroactive revisions will we see before reality and economic propaganda myth are finally superimposed?

Source: St. Louis Fed

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LawsofPhysics's picture

Get long any and all physical assets that can't be stolen or devalued by the fucking paper-pushers in the financial houses and washington.

Stupid fucking sheep.

Central Bankster's picture

Anyone who believes the government, its data, or its promises; gets what they deserve.

quasimodo's picture

You refer to all those on the dole that get free shit?

Maybe that dumb bitch "Obama gonna pay my mortgage, put gas in ma tank" after the first election wasn't such a dumb bitch after all? 

Fuck it....I am sick to death of all the freebies being handed out to the fat fucking useless breed like rabbits eaters that I help pay for.

As for now, yeah.....I guess they are getting what they deserve


Central Bankster's picture

That which is not sustainable, will not be sustained. 

Blue Horshoe Loves Annacott Steel's picture


Dude, your anger seems a little misplaced.  Poor, uneducated people like that woman wanting crumbs didn't fuck up the economy.  Obamaphones isn't the reason the country's going to hell.

Everyone got suckered.

People are mad @ welfare recipients & the poor & union workers, yet don't seem angry that the politicians and Fed can conjure up $29 trillion while the government cries broke?

Fed's $29 trillion bailout of the financial system's+%2429+trillion+bailout+the+financial+system&cat=web&pl=chrome&language=english

Use Startpage to search so those Google a-holes can't track U.


neidermeyer's picture

I'm with you , real estate mortgages at 97% LTV is COOL...  The best financial paper assett right now is a van/truck load of "forever" postage stamps... just think of the returns when a 1st class letter is $50,000 to mail... you can easily sell them to businesses or back to the post office and pay off the farm you just bought at max leverage..

Totin's picture

Is it my imagination or has the collapse sped up dramatically in the last three weeks?

ParkAveFlasher's picture

It is NOT your imagination.


LawsofPhysics's picture

Many of the underlying fundamentals (debt repayment, energy demand, water demand, sulfur demand, nitrogen demand, etc.) are operating on non-negotiable and exponential functions (at least if you want real growth in human terms).  The "traditionally trained" eCONomist/banksters/paper-pusher doesn't understand fundamentals in the real world, much less an exponential equation.  Hedge accordingly, it's all you can do anyway.

homonohumanus's picture

That is so true, I tried to discuss with such people and failed to turned them against their beliefs.

The scary part is that they were bighter than (hence why I may be failed to turned them, they can confuse brightness and being right and how being right can sometime be a pretty siimple matter) and had the best intentions.


For the exponential growth I wonder if it is a deliberated choice to present the equation based on the least relevant denominator.

If you think of disintegration, we usually don't care about how much ataoms disintegrate per second, minute and so on but we use the half life. For any exponential growth (not exponential as the function but let call it steady growth) the relevant data, is like for disintegration  the "doubling time". If you use doubling time every body can access the problem much better, it turns into a matter of doing x2 multiplications.


7% growth leads to doubling period of ten year, 5% is ~16, 3% 20 years.


Looking at the physical world, the reverse mountains we are digging and so on, I'm not sure we can afford even another doubling, as we need at least 3% world wide for the debt system not to collapse we are imho only 20 years away of the greatest change for humanity since possibly the discovery of agriculture. We are to no longer grow wheter we want it or not.

Iam Yue2's picture

Eraserhead. Power for the cause; s&p just keeps on heading up.

Eighteen pieces of data out of Europe this morning: sixteen negative; two positive (austrian construction and estonian retail sales). Dax up 50.

Paradoxical Markets.

mayhem_korner's picture



They're not paradoxical when the CB balance sheets are expanding at a faster rate than the economies are collapsing. 

Blue Horshoe Loves Annacott Steel's picture

BS Bernanke will print digital dollars... to infinity and beyond!

riphowardkatz's picture



up when you need it, then start from a lower base when you need it.

Dr. Engali's picture

It's a good thing that robots only read headlines and don't take a look backwards, if they did we might have a "market"priced a little more realistically......Market...funnny.....WTF was I thinking?

Winston Churchill's picture

Really Doc.

What market is that you speak of.

Surely not the Algo driven  Muppet Show we watch daily.

mayhem_korner's picture



That's no's a space station.

oops...little too much Obi-wan, there

Fake Jim Quinn's picture

All we need now is higher taxes from the fiscal cliff, and we'll have have sunk this sucker. Let the fight begin, and from destruction let renewal be birthed

mrktwtch2's picture

dont know how it is out there..but on my train ride into chicago each morning..there are less and less people..first it was the trademen workers in 2009 then the secetaries in im not sure what these peole do for jobs..ridership is down at leat 10 percent from the start of this say real unemployment is around 14%

adr's picture

They will of course claim foot traffic is up, and sales are up. Using bullshit metrics like Comscore and Visa extrapolations.

There is real hard data. Most stores have door sensors to track foot traffic, most which is still even skewed to the upside by people walking in and out, or a husband walking in to get his wife. Everyone I know in retail has told me foot traffic over the weekend was way down. 10pm to midnight on Thursday was up, but the rest of Black Friday and the weekend was way down. Saturday and Sunday may have just as well been normal weekdays.

Nearly every major retailer uses EDI to track sold inventory. Every vendor gets the reports which lit every item sold, the exact time it is sold, and where it was sold. The EDI report for a major retailer was down 40% from last year's Black Friday weekend in total sales.

People rushed to buy the cheapest items possible and left everything else on the shelf. But yeah, the media will still spin it as a positive to support the ponzi.

LFMayor's picture

How's that foot traffic looking at gun shows, or retailers like Cabela's, BassPro and Dicks, I wonder?

places looked like they announced the kickoff of the  Donny and Marie free Reunion tour.

mayhem_korner's picture



...but isn't it interesting how orderly we ammo-stockers are when the crowds are big.  Not like when they release the hounds into Walmart at 0 am on Black Friday.

LFMayor's picture

I hear you.  Not the sort of crowd that puts up with some idiot hell bent on showing his ass.  These people are linear fixers.  A to B and it's handled.

When they finally do riot, it will something to be recorded for the ages.

Chuck Walla's picture

...but isn't it interesting how orderly we ammo-stockers are when the crowds are big.  Not like when they release the hounds into Walmart at 0 am on Black Friday.

An armed society is a polite society...


Zer0head's picture

the economic myth is here to stay, if in fact they do declare the recession we are currently enjoying as a recession it will be to finish off what is left of their political foes. If Boner does the wise thing he will step up and accept what the O has placed on the table, but if as exepected this goes to or beyond the wire the declaration andn cause  of this recession will be placed squarely on Boner's lap.

earnyermoney's picture

When the next recession hits, Boner and the Rs will be blamed even if they give Barry and the Dems everyting the want in these negotiations.

Spastica Rex's picture

The Republicans are like France.

Republicans win!

Something else you don't hear.

forwardho's picture

Have you no memory? The "fiscal cliff" law was signed by O-prez. Have you also missed that the U.S. has not had a budget for a historical 4 years.  All of this is misdirection.  If I watch the birdie, I won't notice the sharpend 4x4 being rammed up my ass.

Gene Parmesan's picture

The fraud continues unchecked.

Vashta Nerada's picture

Amazing how these numbers were believed in the first place, just like the election results were believed.

NidStyles's picture

Oh it's checked, it's just that the mechanism checking it works on absolutist retribution. Nature let's certain things exist before she breaks out her hammer and starts "fixing" things to bring them back in check.

scatterbrains's picture

oh, I thought it was Sandy'd for a minute.


buzzsaw99's picture

the only way they got that fudged number started higher again was by cutting taxes and ss withholdings. Incomes are stagnant to falling overall (lloyd blankfein's bonus notwithstanding).

toady's picture

I hate when they do this shit!

Can we look forward to 4 to 6 months of this shit, then, oh, by the way, we've been in recession for about a year, like when W was leaving?

adr's picture

But come on we "feel" wealthier. Righ, right?

Vince Clortho's picture

I am sure a Confidence survey can be whipped up to illustrate that point.

docj's picture

Where it went, and/or why it had been counted in the first place is anyone's guess.

Read the parenthetical from the previous sentence and you have your answer.

Screw it - burn this all the hell down, it's going to happen anyway. Screw Ofail and the low-information sheeple who voted to give him 4-more years to screw us while sucking-off banksters. Yes, of course it will be awful for me too as nobody will be immune, but at least I know it's coming.

dwdollar's picture

Winston Smith has been working hard.

Debtless's picture

Why anyone looks at numbers put out by these sketchy govt sources and thinks this market is anything beyond a corrupt casino is beyond me. It is nothing but one. Place yer' bets.

the not so mighty maximiza's picture

Yeah the collapse should happen on this presidents watch where it belongs.

Rainman's picture

Oblameo embraces the legions of USSA ignorants, most of whom have the attention span of a meerkat. Resisting the propaganda through reason is unpatriotic and raycisst. Forward !

docj's picture

Heh Rain - I'm guessing you got down-voted by the same OFA lurker who junked me. Fun times, comrade. FORWARD, indeed.

buzzsaw99's picture

the only raycissts are romney voters. 99.9% male mouth breathing wonderbread types. Good luck with that in coming elections. lulz lulz lulz

docj's picture

Damn buzz - didn't mean to down-vote you and now I can't erase it. Oh well. Mea cupla.

That said - let me guess... only white people can be raycist - right? Because I'm sure Ofail getting, literally, 100% of the vote in certain inner-city precincts had nothing what-so-ever to do with his skin color, right?

buzzsaw99's picture

i was going to troll you by responding that white people enjoyed an exclusionary super majority economic advantage up until quite recently now they just want to go back to the good old days when they didn't have to compete fairly with blacks and mexicans for working class jobs and loans but see, I had mercy on you.


btw you can change your down-vote on me anytime you want (unlike your bring-back-the-good-old-days-white-guy-for-president-vote). ;)


Blue Horshoe Loves Annacott Steel's picture

I dont think when Martin Luther King Jr. wanted equality he meant we'd all be poor because the banksters stole everything from everybody! lol.

A lot of white people are angry because they thought the system would protect them, but it's fucking everyone now.  Welcome to the REAL world everyone.  They failed to understand the system is meant to benefit the rich and it's all class based.

Everyone got suckered.

People are mad @ welfare recipients & the poor & union workers, yet don't seem angry that the politicians and Fed can conjure up $29 trillion while the government cries broke

Fed's $29 trillion bailout of the financial system's+%2429+trillion+bailout+the+financial+system&cat=web&pl=chrome&language=english

Also, use Startpage so those Google A-holes can't track your searches.

Oleander's picture

I am pissed at the politicians, but the fools keep voting them in. I am not worrying about the food pantry or the kids who won't have Christmas. My kid will get get less this year but will eat from the garden I planted and toiled in. The fools balk at Nativity scenes and Christmas trees but then ask me to help the poor have a Christmas. I am done. 

Blue Horshoe Loves Annacott Steel's picture

All this just shows white and minority people are stupid enough to NOT believe in the Constitution and vote along selfish lines.  Good going, U all are fucked.  All the races can get to know each other in the FEMA camps!

The only person anyone with any brains would vote for was Ron Paul, the only politician who voted in line with what he said.  Everyone else was arguing about which flip-flopping liar was best.  People get the government they deserve.

NidStyles's picture

Wish people would get off that Batman Nihilism Philosophy. It's garbage and Nietzsche would be ashamed.