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How Will The Economy Improve In 2014 If Almost Everyone Has Less Money To Spend?

Tyler Durden's picture


As a gentle reminder, the poor spend, the rich don't...

Why is it important? Simple - contrary to the Fed's flawed DSGE models, it is the poor who are more likely to consume. And logically with their purchasing power being funneled to the rich with every $85 billion in monthly debt monetization, they purchase less and less. As the slow but steady contraction in the economy over the past five years has proven beyond a reasonable doubt.

But hey: at least Hamptons' houses have never been more expensive and the Russell 2000 keeps on hitting daily all time highs. Thank you "wealth effect."


Which is why a marginally surging stock market does practically nothing for the 'real' economy... especially when the consumer is increasingly tapped out?!


Submitted by Michael Snyder of The Economic Collapse blog,

Is the U.S. consumer tapped out?  If so, how in the world will the U.S. economy possibly improve in 2014?  Most Americans know that the U.S. economy is heavily dependent on consumer spending.  If average Americans are not out there spending money, the economy tends not to do very well.  Unfortunately, retail sales during the holiday season appear to be quite disappointing and the middle class continues to deeply struggle.  And for a whole bunch of reasons things are likely going to be even tougher in 2014.  Families are going to have less money in their pockets to spend thanks to much higher health insurance premiums under Obamacare, a wide variety of tax increases, higher interest rates on debt, and cuts in government welfare programs.  The short-lived bubble of false prosperity that we have been enjoying for the last couple of years is rapidly coming to an end, and 2014 certainly promises to be a very "interesting year".

Obamacare Rate Shock

Most middle class families are just scraping by from month to month these days.

Unfortunately for them, millions of those families are now being hit with massive health insurance rate increases.

In a previous article, I discussed how one study found that health insurance premiums for men are going to go up by an average of 99 percent under Obamacare and health insurance premiums for women are going to go up by an average of 62 percent under Obamacare.

Most middle class families simply cannot afford that.

Earlier today, I got an email from a reader that was paying $478 a month for health insurance for his family but has now received a letter informing him that his rate is going up to $1,150 a month.

Millions of families are receiving letters just like that.  And to say that these rate increases are a "surprise" to most people would be a massive understatement.  Even people that work in the financial industry are shocked at how high these premiums are turning out to be...

"The real big surprise was how much out-of-pocket would be required for our family," said David Winebrenner, 46, a financial adviser in Lebanon, Ky., whose deductible topped $12,000 for a family of six for a silver plan he was considering. The monthly premium: $1,400.

Since Americans are going to have to pay much more for health insurance, that is going to remove a huge amount of discretionary spending from the economy, and that will not be good news for retailers.

Get Ready For Higher Taxes

When you raise taxes, you reduce the amount of money that people have in their pockets to spend.

Sadly, that is exactly what is happening.

Congress is allowing a whopping 55 tax breaks to expire at the end of this year, and when you add that to the 13 major tax increases that hit American families in 2013, it isn't a pretty picture.

This tax season, millions of families are going to find out that they have much higher tax bills than they had anticipated.

And all of this comes at a time when incomes in America have been steadily declining.  In fact, real median household income has declined by a total of 8 percent since 2008.

If you are a worker, you might want to check out the chart that I have posted below to see where you stack up.  In America today, most workers are low income workers.  These numbers come from a recent Huffington Post article...

-If you make more than $10,000, you earn more than 24.2% of Americans, or 37 million people.

-If you make more than $15,000 (roughly the annual salary of a minimum-wage employee working 40 hours per week), you earn more than 32.2% of Americans.

-If you make more than $30,000, you earn more than 53.2% of Americans.

-If you make more than $50,000, you earn more than 73.4% of Americans.

-If you make more than $100,000, you earn more than 92.6% of Americans.

-You are officially in the top 1% of American wage earners if you earn more than $250,000.

-The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative $37,009,979,568 per year.

It is important to keep in mind that those numbers are for the employment income of individuals not households.  Most households have more than one member working, so overall household incomes are significantly higher than these numbers.

Higher Interest Rates Mean Larger Debt Payments

On Tuesday, the yield on 10 year U.S. Treasuries rose to 3.03 percent.  I warned that this would happen once the taper started, and this is just the beginning.  Interest rates are likely to steadily rise throughout 2014.

The reason why the yield on 10 year U.S. Treasuries is such a critical number is because mortgage rates and thousands of other interest rates throughout our economy are heavily influenced by that number.

So big changes are on the way.  As a recent CNBC article declared, the era of low mortgage rates is officially over...

The days of the 3.5% 30-year fixed are over. Rates are already up well over a full percentage point from a year ago, and as the Federal Reserve begins its much anticipated exit from the bond-buying business, I believe rates will inevitably go higher.

Needless to say, this is going to deeply affect the real estate market.  As Mac Slavo recently noted, numbers are already starting to drop precipitously...

The National Association of Realtors reported that the month of September saw its single largest drop in signed home sales in 40 months. And that wasn’t just a one-off event. This month mortgage applications collapsed a shocking 66%, hitting a 13-year low.

And U.S. consumers can expect interest rates on all kinds of loans to start rising.  That is going to mean higher debt payments, and therefore less money for consumers to spend into the economy.

Government Benefit Cuts

Well, if the middle class is going to have less money to spend, perhaps other Americans can pick up the slack.

Or maybe not.

You certainly can't expect the poor to stimulate the economy.  As I mentioned yesterday, it is being projected that up to 5 million unemployed Americans could lose their unemployment benefits by the end of 2014, and 47 million Americans recently had their food stamp benefits reduced.

So the poor will also have less money to spend in 2014.

The Wealthy Save The Day?

Perhaps the stock market will continue to soar in 2014 and the wealthy will spend so much that it will make up for all the rest of us.

You can believe that if you want, but the truth is that there are a whole host of signs that the days of this irrational stock market bubble are numbered.  The following is an excerpt from one of my recent articles entitled "The Stock Market Has Officially Entered Crazytown Territory"...

The median price-to-earnings ratio on the S&P 500 has reached an all-time record high, and margin debt at the New York Stock Exchange has reached a level that we have never seen before.  In other words, stocks are massively overpriced and people have been borrowing huge amounts of money to buy stocks.  These are behaviors that we also saw just before the last two stock market bubbles burst.

If the stock market bubble does burst, the wealthy will also have less money to spend into the economy in 2014.

For the moment, the stock market has been rallying.  This is typical for the month of December.  You see, the truth is that investors generally don't want to sell stocks in December because they want to put off paying taxes on the profits.

If stocks are sold before the end of the year, the profits go on the 2013 tax return.

If stocks are sold a few days from now, the profits go on the 2014 tax return.

It is only human nature to want to delay pain for as long as possible.

Expect to see some selling in January.  Many investors are very eager to start taking profits, but they wanted to wait until the holidays were over to do so.


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Wed, 01/01/2014 - 14:53 | 4291127 Seasmoke
Seasmoke's picture

by Stealing .....

Wed, 01/01/2014 - 15:02 | 4291144 remain calm
remain calm's picture

It is called printing money at the tune of 75 Billion a month

Wed, 01/01/2014 - 15:20 | 4291189 holgerdanske
holgerdanske's picture
How Will The Economy Improve In 2014 If Almost Everyone Has Less Money To Spend?


By lending them money, of course. In this bizzaro world we can all become wealthy by just pretending and printing.

Not so.?

So why on earth any idiot would buy gold is beyond me.

Simply makes no sense, not so, Mr Armstrong!

I also believe in the tooth fairy, the benevolence of O$ama, and Santa Claus. Oh, yes, and social security!

That's it, goood boy!


Wed, 01/01/2014 - 15:28 | 4291201 InjectTheVenom
InjectTheVenom's picture

the economy will improve because ... well, because all the smart people i see on tv say it will ... Cramer, Bob Pisani , the guy with the witty British accent ... THAT'S WHY !!   

Wed, 01/01/2014 - 15:48 | 4291240 Boris Alatovkrap
Boris Alatovkrap's picture

"Most American is know that U.S. economy is heavily dependent of consumer spending."

Well, that is first problem, economy is not dependent on consumption, but production. First produce, then is consume. Economic plan built on using stuff not already is made, is, how you say, massive stupidity.

"Most intelligent person* is KNOW economy is dependent on production and efficiency of production"

There, Boris is fix that!

* Nobel Laureate or member of Banskter class is exclusion

Wed, 01/01/2014 - 16:02 | 4291275 Headbanger
Headbanger's picture

The answer to the question is easy!

The economy will improve by imploding first!

Only after massive private and public defaults and the prices of everything reflect the true earnings of the sheeple can there be any economic improvement because there's too much debt to support now.


Wed, 01/01/2014 - 16:45 | 4291377 negative rates
negative rates's picture

It's called the tax man a cometh.


Wed, 01/01/2014 - 18:13 | 4291575 markmotive
markmotive's picture

The world is trying to dig out of deflationary cycle. Money printing will continue. And so will the transfer of wealth.


Wed, 01/01/2014 - 20:56 | 4291764 philipat
philipat's picture

When the Insurance Industry and Big Pharma wrote Obamacare, why would any other outcome be expected? Their problem, however, is that they also assumed that Government would have the competence to keep its side of the "Deal" in terms of both inclusion of the young in the risk pool AND implementation. Which, of course, was a very dangerous assumption. Obama care IS the Black Swan which will completely destroy the middle class, upon which any free society is built.

Mission accomplished?

Wed, 01/01/2014 - 16:21 | 4291311 bobert
bobert's picture


A thought for you.

When quoting just type it the way it reads and it will be accurate.

You have interesting thoughts.

Wed, 01/01/2014 - 16:39 | 4291366 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is type exactly as read...? Is not accurate?

Wed, 01/01/2014 - 16:41 | 4291360 RafterManFMJ
RafterManFMJ's picture

Boris quotes, Most American is know that the U.S. economy...

Wait, even when you cut and paste a quote, it mixes up word order? We is know Boris is make good boot leg Office programs.

Wed, 01/01/2014 - 16:41 | 4291374 Boris Alatovkrap
Boris Alatovkrap's picture

... what is "cut and paste"? Boris is not possess of fancy new computer.

Wed, 01/01/2014 - 17:45 | 4291495 BLOTTO
BLOTTO's picture

Queue in 1st of many false flag(s) for 2014 in 3, 2,....1....

Wed, 01/01/2014 - 17:45 | 4291496 Hulk
Hulk's picture

you will first need to get yourself a pair of digital scissors and a stack of digital paper...

Wed, 01/01/2014 - 16:31 | 4291338 AngelEyes00
AngelEyes00's picture

As remain calm states, it's the QE.  My question is; how long can zero interest rates supported by QE, along with near trillion dollar deficits continue?  So far it has worked to maintain BAU, but is there a breaking point? 

Wed, 01/01/2014 - 16:35 | 4291354 bobert
bobert's picture

Watch the federal reserves balance sheet.

If it increases we have problems.

If it remains static we don't.

If it goes down we have problems.

We can then readdress this in 2015.

Wed, 01/01/2014 - 18:23 | 4291592 NIHILIST CIPHER

When the 10yr gets to 6% THEN you will know you have a really big problem.

Thu, 01/02/2014 - 01:09 | 4292547 Kuanyeah
Kuanyeah's picture

The poor pay

Wed, 01/01/2014 - 15:02 | 4291145 johngaltfla
johngaltfla's picture

The only ones who will be allowed to steal reside on Wall Street or in Washington. This will be an epic collapse in 2014, one for the 18 year old Scotch and lots of popcorn as we watch...


Predictions for 2014 Print Edition

Wed, 01/01/2014 - 15:53 | 4291244 Spigot
Spigot's picture

"How will the Economy Improve?"

If we define 'economy' to simply mean GDP, a reduction of gross income will lead to a reduction in GDP (unless a super storm wipes out the NYC-WashDC corridor, in which case we all win...).

If we define 'economy' to mean using one's own energy and initiative, doing more and better with less, then a reduction in income will certainly spur THAT kind of economy.

In this bit of sad sack alley, we've been doing wonderfully well in the second catagory after the major income earner became chronicly ill, and unable to work. What has worked out to a 65% reduction in gross for the domo...since the late 90's. So, not unfamiliar territory.

I believe JKGalbraith wasl incredibly accurate in his assessment that people have to leave their 'normal' in order to achieve. I believe that the difficulties of these times will be the fertile field from which a new crop of innovation and prosperity will come forth. Most of us tend to be willing to muddle along in our mediocrity until reality kicks us out of the nest and forces us to fly.




Wed, 01/01/2014 - 16:01 | 4291270 RaceToTheBottom
RaceToTheBottom's picture

in case you have been asleep for the last few years, innovation is only a small part of the rewards being played out there. WS Produces NO INNOVATION, only corruption ism and cronyism...

Why would things change? There is no driver for the banksters to change anything. Until there is, be it violence, or possibly utilization of laws, nothing changes.

Wed, 01/01/2014 - 17:44 | 4291499 Spigot
Spigot's picture

Have you invented a way to replace or avoid interactions with WS, and thereby regain control of your shrinking capital? If not, then you haven't been terribly focused have you?

Use that big muscle between your ears, hombre. Light a candle instead of cursing the darkness...

Thu, 01/02/2014 - 12:15 | 4293294 RaceToTheBottom
RaceToTheBottom's picture

Good point.

I use a CU not a bank.  OK, admit have a mortgage from Chase since WAMU when wife worked there.

Have a BOFA account as a conduit to transfer consulting money into the CU.  Never held in BOFA, more than days.

Wife and I make close to 300K and WS will never get any of it. 

Live in bad section of town where very local community trumps actions of the local bad community.

Am getting dual citizenship (proving harder than expected) to help prepare for future problems

Have more than I should have in Silver and Gold, mostly in CEF, outside of US

Wed, 01/01/2014 - 15:11 | 4291172 VD
VD's picture

End not only the Fed but the IRS as well.

Wed, 01/01/2014 - 15:20 | 4291184 XitSam
XitSam's picture

But that would mean the government has less money to spend and the people get to keep what they earn. That will not be allowed.

Wed, 01/01/2014 - 15:52 | 4291241 zerozulu
zerozulu's picture

debt-jubilee my friend, debt jubilee.

Wed, 01/01/2014 - 15:52 | 4291246 Boris Alatovkrap
Boris Alatovkrap's picture

Long time coming! Technical term is "restructure of debt".

Wed, 01/01/2014 - 16:02 | 4291263 Seasmoke
Seasmoke's picture

Boris, you lost your accent !!!...... Rosetta Stone ???

Wed, 01/01/2014 - 16:32 | 4291347 Boris Alatovkrap
Boris Alatovkrap's picture

You are accuse of Boris of infidelity!? Boris is never hearing of whore Rosetta!

Wed, 01/01/2014 - 16:40 | 4291367 bobert
bobert's picture

Oooops, my fat finger.

You have two green arrows Seasmoke.

I misstruck.

Gotta love Boris.

Wed, 01/01/2014 - 17:08 | 4291422 Dr. Destructo
Dr. Destructo's picture

Nah his accent is as thick as ever -he didn't insert a definite article before the word "Technical".

However, I must provide a "red arrow" to maintain balance.

Wed, 01/01/2014 - 15:51 | 4291243 Boris Alatovkrap
Boris Alatovkrap's picture

IRS is collection division of Federal Reserve. End Fed will end IRS. Also is end bank, petro dollar, massive surveillance, presidential assassination, easy credit, identity fraud, but is beside point.

Wed, 01/01/2014 - 16:17 | 4291297 Freddie
Freddie's picture

Boris - he know American history than American stupniks.

Look at the history folks.    Fed and IRS/icnome taxes were "passed" by Congress in the middle of the night within weeks or months of each other.  IRS was formed to collect money for the private Federal Reserve Bank.

Wed, 01/01/2014 - 16:37 | 4291356 Boris Alatovkrap
Boris Alatovkrap's picture

Correction, Internal Revenue Service is form in 1953 by President Eisenhower, Amend XVI is ratify in 1913 June by Philanderer Knox, Federal Reserve Act is sign to law December 23, 1913 by President Wilson. But even when evil is move slow, is still evil.

Wed, 01/01/2014 - 17:14 | 4291443 bobert
bobert's picture


The Bureau of Internal Revenue began using the name Internal Revenue Service as early as 1918.

Just saying.

I do have a modern computer, however, am limited to only a few operations like Wikpedia.

Wed, 01/01/2014 - 15:25 | 4291200 holgerdanske
holgerdanske's picture

Why be so modest?

What have we got worth preserving, the justice system, naah, the health care --- no, the banking system hell no, the lobbyist-- don';t make me laugh, the politicians--- errh WHAT?, the military industrial complex, NSA, foreign relations?


Add on!!, not much worth saving, except our dignity and the will to create something more worthy and in line with what this world will sustain.

Humbleness, if such a thing exists today, might be a good point to start, as would respect for our fellow men and living creatures! But the rest, they can have it!

Wed, 01/01/2014 - 16:26 | 4291331 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

You can only save your family. Plan, prepare, and you will survive.

Or you can depend on artificial constructs such as government and you will die as those who make up those entities protect themselves as they watch you and yours die.

Wed, 01/01/2014 - 17:17 | 4291445 Boris Alatovkrap
Boris Alatovkrap's picture

You like you are family? You can keep family!

Wed, 01/01/2014 - 17:54 | 4291519 SDShack
SDShack's picture

"Your family, I want to buy them. How much for your children? Your wife? The little girl?"

Wed, 01/01/2014 - 15:08 | 4291173 TideFighter
TideFighter's picture

Become a Like and Tweet reseller. Tweet re-selling already a hot item in my office.

Wed, 01/01/2014 - 15:56 | 4291249 booboo
booboo's picture

"by Stealing"
That is the essence of democracy, stealing other people's shit by voting for a bigger more powerful central government as their proxy and of course they are happy to oblige.

Wed, 01/01/2014 - 16:02 | 4291265 Freddie
Freddie's picture

Hope & Change.  More Democrat and RINO tyranny.

Wed, 01/01/2014 - 16:31 | 4291339 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Hope is a good thing. At least it was until it became a slogan for facists.

Wed, 01/01/2014 - 16:59 | 4291415 roadhazard
roadhazard's picture

Interesting that repubicans offer neither hope or change. That's what I call brutal honesty.

Wed, 01/01/2014 - 17:58 | 4291523 SDShack
SDShack's picture

Dumbcrats said they offered Hope & Change, but in reality all they delivered was Hoax & Chains. That not only was dishonest, it was brutal.

Wed, 01/01/2014 - 19:38 | 4291704 roadhazard
roadhazard's picture

They did deliver change, they didn't promise what kind. The hope was destroyed on the House floor.

Wed, 01/01/2014 - 22:34 | 4292278 lakecity55
lakecity55's picture

Yes, most serfs do not understand we have 1-party rule.

Wed, 01/01/2014 - 16:17 | 4291309 Smegley Wanxalot
Smegley Wanxalot's picture

The MPGFOBG (Marginal Propensity to Get Fucked Over By the Government) is 100%, or more.

Wed, 01/01/2014 - 14:53 | 4291129 ebworthen
ebworthen's picture

The economy won't improve in real life, only on the Glass Onion and the Interwebs.

Wed, 01/01/2014 - 17:09 | 4291435 SAT 800
SAT 800's picture

It's impossible for any economy to improve without manufacture and export. As long as we subsidize China and remove jobs from this economy we'll continue to fail.

Wed, 01/01/2014 - 14:52 | 4291133 maskone909
maskone909's picture

There is no economy. There is only QE.

Wed, 01/01/2014 - 15:01 | 4291152 I am Jobe
I am Jobe's picture

Then there is Instagram, Snapchat and Fuckbook to make the masses happy by posting all day. O don;t forget the smart phone crap mania for those who cannot wait. 

Wed, 01/01/2014 - 16:50 | 4291393 bobert
bobert's picture

And, ZH for us non-conformists.

Wed, 01/01/2014 - 15:29 | 4291205 InjectTheVenom
InjectTheVenom's picture

ssshhhhhhh  !!

Wed, 01/01/2014 - 17:10 | 4291429 SAT 800
SAT 800's picture

As always, I'm fascinated to see that no one understands what's actually wrong. Globalism is what we were taught to call it. What it actually is is send all the money to China and eliminate all jobs in North America. No progress will be made until this is cancelled. We have to make our own socks and underwear; and other things. Bill Clinton signed the bill that gave China most favored nation trade status; which is completely looney. It's obvious he was following orders from the uber capitalists behind the scenes; the multinationals wanted to manufacture in a place that cost nothing and sell into the US economy; skipping the payroll for the "overpaid" American worker; and they got what they wanted; or what they bought, shall we say.

Wed, 01/01/2014 - 18:46 | 4291622 Dr. Destructo
Dr. Destructo's picture

Not only that, when corporations were pigeonholed by Wall Street to focus on revenues for shareholders über alles it created a situation where a corporation must, above all else, look for new ways to increase productivity and reduce cost. So the result of that are products with planned obsolescence in mind, and outsourcing/insourcing into the hands of cheap labor.

We keep you alive to serve the economy. Spend well, and live.

Wed, 01/01/2014 - 21:21 | 4292075 starfcker
starfcker's picture

SAT,  i always look forward to your posts. it really is that simple. the global economy is no different than our inner cities. as long as you pump money in, everything is peachy keen. but these are black holes (sic). nothing of value ever comes out. and the day you stop pumping is going to be ugly. the only reason we haven't been bled dry is QE. but where do we go from here? we can't print forever. we can only paper over real issues for so long. all the other nonsense about tax policy and income equality and discrimination and any other are distractions from the only issue that matters. we have to get back to rebuilding our own country, not infrastructure, but institutions, values, and an effort based reward system. happy new year.

Wed, 01/01/2014 - 23:06 | 4292358 newprepper
newprepper's picture

so true.

Wed, 01/01/2014 - 23:17 | 4292379 starfcker
starfcker's picture

BTW, great article over on NRO today, the henry ford paradym. by robert pattenson

Wed, 01/01/2014 - 14:58 | 4291140 dobermangang
dobermangang's picture

2014 will be an average year for the Obama economy.  Worse than 2013, but better than 2015.  So average.

Wed, 01/01/2014 - 15:01 | 4291141 TideFighter
TideFighter's picture

Black lesbian female unionized federal workers don't care. 

Wed, 01/01/2014 - 17:26 | 4291462 lotsoffun
lotsoffun's picture

mooch??  we'll be paying for her and her kids forever, after he runs off with reggie.

Wed, 01/01/2014 - 15:01 | 4291143 Elliptico
Elliptico's picture

UPS might disagree about the disappointing retail sales. Logistics.

Wed, 01/01/2014 - 15:00 | 4291148 Musashi Miyamoto
Musashi Miyamoto's picture

The rust belt will continue to consolidate. everyone will move to California and be a movie star. that or watch reality TV.

Only the looters the destitute and the sheep are left.

Wed, 01/01/2014 - 15:03 | 4291157 cynicalskeptic
cynicalskeptic's picture

And once the rust belt is empty, oil will be discovered there - on land bought up real cheap.

Wed, 01/01/2014 - 15:00 | 4291149 I am Jobe
I am Jobe's picture

Thru Services


Selling Breast Milk

Selling hair


Creating Drugs in your back yard




Wed, 01/01/2014 - 15:51 | 4291245 zerozulu
zerozulu's picture

no begging????

Wed, 01/01/2014 - 15:04 | 4291153 cynicalskeptic
cynicalskeptic's picture

Hell, even if you've really lucky and managed to make slightly MORE, you're paying a LOT MORE for things like food.  The understatement of inflation rates and continued suppression of interest paid on any savings (while the interest paid on debt continues to be at ridiculously high levels) is robbing those that actually WORK for a living.

Wed, 01/01/2014 - 15:05 | 4291154 lindaamick
lindaamick's picture

Given the nature of the current fiat currency system, globalisation has one characteristic whereby all parties who are able to print money are in the confidence game together.   As long as this global confidence game continues to enrich the money/power people, it can continue for a LONG time. 

It is difficult to determine when the jig will be up.

Happy New Year. Same as the Old Year.

Wed, 01/01/2014 - 15:29 | 4291204 MeelionDollerBogus
MeelionDollerBogus's picture

can't continue into social uprising. When food & shelter are lost & enough people are still armed & angry they will storm the fortress and collapse everything.

Wed, 01/01/2014 - 18:10 | 4291553 SDShack
SDShack's picture

Constitution and the rule of law shredded. 50 millioin using SNAP. NSA spying on everyone. IRS extorting everyone. TSA stockpiling billions of rounds of ammo. FEMA ready to set up trailer and tent camps all over the country. TPTB know what is coming and what a threat the masses COULD be, and are taking every precaution to insure not only the survival of TPTB, but their ability to steal everything the sheeple still have. It's what sociopaths do. We are a long way from revolution, probably decades. Sad but true. Prepare accordingly.

Thu, 01/02/2014 - 18:27 | 4294546 MeelionDollerBogus
MeelionDollerBogus's picture

I'm not in your country - that's part of the protection I've got from that catastrophe. However, FEMA, TSA, military police goons can't be deployed fast enough to control the riots. That's why even China is shit-scared of that. They are very wary of riots because they can't possibly mobilize enough police+soldiers to meet the masses. Just too many.

Wed, 01/01/2014 - 15:06 | 4291156 lakecity55
lakecity55's picture

in the end, it was soviet-style state planning and EBT cards for paychex.

Wed, 01/01/2014 - 15:05 | 4291161 I am Jobe
I am Jobe's picture

Screw the EBT

Ration stamp

Wed, 01/01/2014 - 15:39 | 4291224 lakecity55
lakecity55's picture the end, it was even more soviet state planning and ration cards for the party members. Everyone else died from exposure in the cold winter snow under a dark gray sky...

Wed, 01/01/2014 - 15:13 | 4291159 TideFighter
TideFighter's picture

How to make money in 2014: Apply for student loans as a foreign exchane student using somebody's gamndma's social security number while skimming by doing charitable community orgainizing and hiring a ghost writer for a book deal. Buy a house in Chicago with an extra lot and spin off the house scott-free while paying 4x for the lot and obtaining 100% financing. 

Wed, 01/01/2014 - 15:11 | 4291178 observer007
observer007's picture

Whats that:

Illuminati Symbolism : Sydney New Year's Eve 2014 Fireworks

Sydney greets 2014 with an 11-minute extravagant display of Illuminati Masonic Symbolism fireworks from the iconic opera house and harbour bridge.

Video here:

Wed, 01/01/2014 - 15:14 | 4291180 Jack Burton
Jack Burton's picture

Engineer a bigger housing bubble, mass home equity increases prompt consumers to cash out equity and buy new cars, remodel, buy consumer electronics and vacation. This is what the Fed wishes for, and trys to force by it's manipulation of interst rates and QE to banks and Hedge Funds to drive up speculation on housing. We most think this is played out and a dead end. Will that stop them trying? I think not. Over in the UK, every resource has been thrown at housing to boost home equity, what nobody seems to care about is how first time home buyers, I mean young people, can afford to buy a starter home. This is where government handouts come into play, taxpayers are forced to hand money over to home buyers to help fund the down payments. Meanwhile, the wrecking crews are at work in Ireland, knocking down housing estates that never made it into the market place when the bottom feel out. Many thousands of homes are goin gunde rthe wrecking ball, a look at many of them shows cheap ugly, crowded and disgustingly designed model homesx on these estates. Pity the poor sods who actually bought one of these shit holes at pre 2008 inflated prices.

The anglo saxon world just can't seem to get over housing as the investment of a life time, instead of a home to live in for a life time. Sadly, even my family and friends over in Sweden are now caught up in the debt trap and house price inflation. An elderly aunt of mine sold her family cottage a couple blocks from the seaside for a fortune. Mind you, it is well kept up, but 200 years old and small, yet, only a rich Stockholm corporate man could afford to buy it from her. She is counting her Kroner and hold up now in an apartment with a totally secure retirement fund. So indeed, the first people in can cash huge profits out, but the young people are totally fucked. Young Swedes are pilin gup massive debts, most of it housing related. It must and will blow up.

Wed, 01/01/2014 - 16:59 | 4291368 r3phl0x
r3phl0x's picture

Unemployment, part-time/low-income jobs, and student loan debt will prevent many people from buying into the ZIRP/QE inflated real estate market. There are multiple debt-creation predators competing to enslave the young, and IMO the student-loan faction is virtually ensured a victory over the housing-loan faction for borrowers under 30 years of age.

Wed, 01/01/2014 - 19:29 | 4291698 Jack Burton
Jack Burton's picture

Agreed! Student loan debt now has a death grip around the necks of America's youth. The banks are chopping up these debt obligations and mixing them up into new investment instruments to sell. This is a double win for bankers. The scale of student loan debt insures mass default as many students will not be rewared with high paying jobs in return for their educations. Profits are good for banks, students are just more debt slaves now to feed the financial engineers and the debt based economy.

Wed, 01/01/2014 - 15:21 | 4291183 JustObserving
JustObserving's picture

Less money to spend?  Aren't you supposed to buy TWTR, Goldman, FB and short gold and silver as the Fed tells you do? 

If you do not have billions, it is because you do not have enough money to buy a few Fed employees (Greenspan made billions for Bill Gross) or a few politicians or a few SEC/CFTC (what silver manipulation?) employees.  Or you do not work for the NSA where you can spy on every economic activity in this world, a virtual license to mint money.

Look at Steven A Cohen.  He stole tens of billions by illegal trading and gets to keep almost all of it.

Alan Greenspan, the former Federal Reserve chairman, has helped Pacific Investment Management Co. make ``billions of dollars'' in his role as a consultant, saidBill Gross, the bond manager's co-chief investment officer.


Back in March, when the Securities and Exchange Commission agreed to settle a big insider-trading case involving SAC Capital Advisors, one of the biggest hedge funds in the country, I mischievously suggested that Steven A. Cohen, SAC’s mercurial and publicity-shy boss, was effectively buying off the U.S. government for six hundred and sixteen million dollars. (That was the size of the fine that the S.E.C. levied on SAC.) It turns out that I was wrong. Cohen is laying out a lot more than six hundred big ones to try to make the feds go away. To be exact, he’s paying them $1.8 billion.

Make no mistake, though: this could still be a sweet deal for Cohen, who set up shop twenty years ago with just twenty-five million dollars under management. Assisted by a battalion of high-priced lawyers, he has reached a “global resolution” with the Justice Department that allows him to keep the bulk of the vast fortune—some nine billion dollars, according to the New YorkTimes—that he made running a firm at which insider trading was “substantial, pervasive and on a scale without known precedent in the hedge fund industry.” And, at least for now, Cohen won’t face any criminal charges or the prospect of any jail time.


Wed, 01/01/2014 - 15:34 | 4291213 TaperProof
TaperProof's picture

Laws don't apply in the USSA if you have enough cash.  Or are friends with a party member.

Wed, 01/01/2014 - 15:22 | 4291191 dbTX
dbTX's picture

I'm looking forward to the American Spring and another summer of recovery.

Wed, 01/01/2014 - 17:11 | 4291432 max2205
max2205's picture

Right...who is going to self emulate themselves first?

Wed, 01/01/2014 - 17:16 | 4291444 SAT 800
SAT 800's picture

If Red Dawn doesn't come first.

Wed, 01/01/2014 - 23:00 | 4292353 newprepper
newprepper's picture

You are so right . That scam will be out by mid Feb.

Wed, 01/01/2014 - 15:24 | 4291199 robertocarlos
robertocarlos's picture

If you have less money to spend then you just have to spend smarter. Don't allow dollars to leave the country. Stop malinvesting. Tell commies to go to Hell.

Wed, 01/01/2014 - 15:28 | 4291207 moneybots
moneybots's picture

"Is the U.S. consumer tapped out?"


The story on the new Mayor of NYC said that a record number of tourists went to NYC last year.

Wed, 01/01/2014 - 19:55 | 4291726 Clowns on Acid
Clowns on Acid's picture

Europeans / Pommies from UK taking advantage of lower USD, lower prices for evertything from clothing to tech gadgets, iPads, etc. They all come over in Sept. and in Dec to do shopping.

Wed, 01/01/2014 - 15:31 | 4291209 eddiebe
eddiebe's picture

"Money runs up-hill and shit runs down-hill."     Old plumbers proverb.  

The money may stop, but the shit never will.

Wed, 01/01/2014 - 15:31 | 4291210 TaperProof
TaperProof's picture

Obamacare will stimulate the economy.  Wait what?

Wed, 01/01/2014 - 15:34 | 4291214 TheRideNeverEnds
TheRideNeverEnds's picture

wait a minute; that is a false premise, not EVERYONE has less money, the 1% are more wealthy now than they have ever been and we are still paying them 75 billion per month to not crash the markets so we should be good... for now.

Wed, 01/01/2014 - 15:32 | 4291216 moneybots
moneybots's picture

 "The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative $37,009,979,568 per year."


Now THAT is redistribution of wealth.


Wed, 01/01/2014 - 16:00 | 4291268 robertocarlos
robertocarlos's picture

Flacco earned everyone of those 20 million dollars.

Wed, 01/01/2014 - 17:37 | 4291484 Spigot
Spigot's picture

Works out to average of $41.4 million per each of the 894,

However, would like to point out that if a hedge fund manager gets a $1 billion bonus (and this did happen in NYC back just before the big assed POP!, earning more in that one year then all the teachers in NYC would earn in 3 yrs) this would tend to skew the curve a bit to the up side.

THAT said, $37 billion is chump change in a $1500 billion economy, in terms of the "taking" away from the compensation of "the many", amounting to about $112 per capita if entirely distributed to the population as compensation (man, woman and child).

Wed, 01/01/2014 - 19:41 | 4291714 cynicalskeptic
cynicalskeptic's picture

The 7 WalMart heirs are worth more than the bottom 40% of ALL Americans 

Wed, 01/01/2014 - 15:33 | 4291218 djsmps
djsmps's picture

I bought a Chop Wizard.

Wed, 01/01/2014 - 15:57 | 4291256 robertocarlos
robertocarlos's picture

My cheap (100 dollars) Chinese toaster called it quits yesterday. There is a reason the instruction manual recommends it be unpluggged between uses. G-d damn cords. Now I have to go back into debt again.

Wed, 01/01/2014 - 18:35 | 4291613 NIHILIST CIPHER

robert   Where did you buy that toaster, Neiman Marcus?  You can buy a freaking top of the line toasteroven for less than 100usd. Can't you just get a new cord put on the toaster you have?

Wed, 01/01/2014 - 18:56 | 4291640 robertocarlos
robertocarlos's picture

It's a Cuisinart from Hudson's Bay. It's long and narrow and handles bagels and wide loafs. I'll try to fix it with a new cord. Ususally cords break internally at the plug from improper disconnecting from the wall socket. This one is broken somewhere else but it still works if the cord is pulled to a certain position. At least it worked one more time. The oven broiler is a terrible place to make toast. The Bay has high mark ups so I hope I bought it on sale and when I bought it the CDN was probably at 62 cents to the US DOLLAR. That was a decade or more ago. 1999, Which is how much a toaster is worth.

Wed, 01/01/2014 - 23:00 | 4292347 TaperProof
TaperProof's picture

Well hey, it would have been $110 to buy an American toaster, you saved $10

Wed, 01/01/2014 - 15:42 | 4291228 surf0766
surf0766's picture

In the new Amerika, you will have less money per the new guberment mandate progressives. Now eat your peas.

Wed, 01/01/2014 - 15:44 | 4291231 FieldingMellish
FieldingMellish's picture

Trickle down from the 0.0000000001%... 

Wed, 01/01/2014 - 15:44 | 4291232 yogibear
yogibear's picture

Record number weapons and ammo sold in 2014. Also record sales of heavier weapons.

Wed, 01/01/2014 - 15:49 | 4291238 PontifexMaximus
PontifexMaximus's picture

The economy does not have to improve, just keep POMO's alive. Indices have to move up, that's the ordre de jour! There can be 80 or 100 mio ppl on food marks, no problem. You just need someone to buy up all the treasuries issued to finance the "gap". Snd that "someone" is already named. So, what to worry about?

Wed, 01/01/2014 - 17:11 | 4291441 max2205
max2205's picture

When ABC news quits telling us how much 'our 401ks' went up you'll know the SHTF soon

Wed, 01/01/2014 - 15:55 | 4291247 the 300000000th...
the 300000000th percent's picture

Lies will be the recovery. Lies, lies lies

Wed, 01/01/2014 - 23:52 | 4292448 Goldilocks
Goldilocks's picture

Don’t Believe the Lies – THIS Is the Economic Reality – Take a Look… Then Get Prepared

Wed, 01/01/2014 - 15:55 | 4291248 RaceToTheBottom
RaceToTheBottom's picture

A democracy cannot continue when it is in in the interests of the vast majority of the populace to have the economy fail....

This is where we are right now.

Wed, 01/01/2014 - 16:51 | 4291396 booboo
booboo's picture

The sooner the better. All democracies fail because the majority always votes for for the guy that promises to steal the most from the productive minority, other then the fact that we are NOT a fucking democracy.

Wed, 01/01/2014 - 19:58 | 4291734 cynicalskeptic
cynicalskeptic's picture

You have that backwards.   It's the wealthy MINORITY that manipulate government to get even RICHER - collecting hundreds of millions in tax breaks and legislation favoring them all the while screaming about those 'poor people of food stamps' stealing form the government.    Execs worth hundreds of millions have looted company pension plans and offloaded the liabilities onto government, used political connections to push through no-bid government contracts for inferior goods or products government does not even want (Crappy body armor made by a guy who spent $13 millioon on his daughter's bamitzvah of one, Halliburton for another).  You have the 7 WalMart heirs worth more than 40% of ALL Americans.  How 'productive' are they compared to all the WalMart workers kept on part-time status top avoid paying any benefits (and forced to apply for Foodstamps and other government benefits).

All democracies fail because people want more from government than they are willing to pay for - those WITH money and power and influence get FAR more from government than the masses.

I worked in Wall Street for a while - all the execs (who spent all their time trying to get MORE while accomplishing very little) could have disappeared and things would still have gotten done, probably with greater efficeincy.  But get rid of even a small proportion of the hourly workers and things ground to a halt.  

Wed, 01/01/2014 - 19:55 | 4291735 cynicalskeptic
cynicalskeptic's picture

You have that backwards.   It's the wealthy MINORITY that manipulate government to get even RICHER - collecting hundreds of millions in tax breaks and legislation favoring them all the while screaming about those 'poor people of food stamps' stealing form the government.    Execs worth hundreds of millions have looted company pension plans and offloaded the liabilities onto government, used political connections to push through no-bid government contracts for inferior goods or products government does not even want (Crappy body armor made by a guy who spent $13 millioon on his daughter's bamitzvah of one, Halliburton for another).  You have the 7 WalMart heirs worth more than 40% of ALL Americans.  How 'productive' are they compared to all the WalMart workers kept on part-time status top avoid paying any benefits (and forced to apply for Foodstamps and other government benefits).

All democracies fail because people want more from government than they are willing to pay for - those WITH money and power and influence get FAR more from government than the masses.

I worked in Wall Street for a while - all the execs (who spent all their time trying to get MORE while accomplishing very little) could have disappeared and things would still have gotten done, probably with greater efficeincy.  But get rid of even a small proportion of the hourly workers and things ground to a halt.  

Wed, 01/01/2014 - 22:05 | 4292225 logicalman
logicalman's picture

A 'so-called' democracy is just the tyranny of the many over the few.


Wed, 01/01/2014 - 16:03 | 4291264 buzzsaw99
buzzsaw99's picture

piece of shit article. it even cites cnbc. LUZR!

and as the Federal Reserve begins its much anticipated exit from the bond-buying business...

pure tripe! it is qe to infinity and beyond and all you bitchez know it deep in your gold nugget fondling hearts. and since when did profit taking have any effect on the bernanke-yellen era stock market? even if the stock market did somehow crash that would tend to put a floor under bond prices.


stop sniffing glue dude. put it down, step away, open a window.


Wed, 01/01/2014 - 16:02 | 4291271 yogibear
yogibear's picture

No problem, the 1% can just keep financially raping the 99% until it collaspes and a dictator/Hilter-type takes charge.

The Federal Reserve banksters will ensure the raping until forced to stop.

Wed, 01/01/2014 - 16:05 | 4291273 LooseLee
LooseLee's picture

Only an equity BULLTARD could convince themselves (and other sheep) that the economy will improve in 2014 DESPITE almost everyone having less money to spend....

Wed, 01/01/2014 - 16:08 | 4291281 TPTB_r_TBTF
TPTB_r_TBTF's picture

The MIC can take up the slack and increase spending.

Signed: a Bulltard

Wed, 01/01/2014 - 16:11 | 4291286 The Burning Planet
The Burning Planet's picture

Amazing. Here we are 8 years after the IEA officially declared peak oil, and people STILL cannot figure out why the economy won't recover. Brain dead fucking amazing. This species is terminal.

Wed, 01/01/2014 - 16:14 | 4291300 yogibear
yogibear's picture

No problem, the Federal Reserve just prints more and buys US debt and stocks. It's the way the Fed heads think. Indfinite printing.

Wed, 01/01/2014 - 16:42 | 4291334 SKY85hawk
SKY85hawk's picture

You, Tyler Durden, have an obligation to tell both sides of any story!


Didn't Obama promise to only tax the rich?

I haven't worked in 4 years and the insurance premiums were killing me.

If my job had not been offshored, I'd still be working and would not qualify for the tax credit.

Since QE is being reduced by 10 billion a month, They can do full tax credits for 8.333 MILLION people.

That could help GDP more than the banks are!

One last thing, Blue Cross has a Silver plan with ZERO deductible.  Yes, the copays are higher, but the wife an I don't need a lot of doctoring.


Before getting angry, check your eligibility for the Tax-Credit!

KFF.ORG/INTERACTIVE/SUBSIDY-CALCULATOR will give you an estimate of how much subsidy you qualify for.

The definition of Income is not clear.  I've found that line 22 of your 2014 tax return is what s/b used. 

Add in Soc-Security income that's not taxable.  Many people don't have enough W2/1099 income, less than 15,800, to qualify.  The Soc-Sec amount should get a lot of people into the 'qualified' range.

The odd part is references to 2014 Income.  Gives folks over the 400% level time to plan their Income levels in advance?   has the Final published regs on the tax credit.

Search for: 

3. Computing the Premium Tax Credit





Wed, 01/01/2014 - 16:56 | 4291405 Atomizer
Atomizer's picture

Title modification:


Q:  How Will Crony Capitalism Quarterly Earnings and Revenue Improve In 2014 If Almost Everyone Has Less Money To Spend?

A: Your comments

Wed, 01/01/2014 - 17:11 | 4291440 SAT 800
SAT 800's picture

As far as the post goes; I agree; I consider this fundamental and I remind myself of it every time I see a "feel good" memo on the buy stocks page; as soon as the savings are all in the stock market, or spent; CRAASH.

Wed, 01/01/2014 - 18:02 | 4291538 anefarious1
anefarious1's picture

When people go to file their tax returns April 2015 they will be shocked to find out their Obamacare fine is much higher than the often quoted $95 or $285 for a family.

I just calculated my penalty on and I will owe $818

Wed, 01/01/2014 - 18:40 | 4291619 Spigot
Spigot's picture

Oh, yes, my sweet. But if you avoided paying 8x as much in premiums per annum and the $6000 per person out of pocket deductables before a ZeroCare policy actually pays for anything ... then you are far, far, far ahead of the pack and certainly, certainly, certainly better off. Just make sure you are not chained to any investment which depends substantially on descretionary spending by those who DID NOT choose to pay $820 in taxes vs instead paying $6,000-$12,000 in premiums(each and every year from now till death) and, etc ... because that sucking vortex known as ZeroDiscretionarySpending will drag you and your investment straight into a cold, watery hell.

Wed, 01/01/2014 - 18:28 | 4291593 Stuck on Zero
Stuck on Zero's picture

I'm not worried.  All the experts have declared 2014 to be the best year ever:

Jeremy Siegel's bullish stock market call for 2014

'We have entered a 15- to 20-year bull market' -




Wed, 01/01/2014 - 20:07 | 4291743 deflator
deflator's picture

Is the U.S. consumer tapped out?  If so, how in the world will the U.S. economy possibly improve in 2014?

Globalization has enabled the U.S. government and corporate elites to extrapolate growth(for themselves) while U.S. domestic growth actually goes steadily negative.


Wed, 01/01/2014 - 21:03 | 4291853 22winmag
22winmag's picture

Storm the Bastille[s].

Wed, 01/01/2014 - 22:02 | 4292217 logicalman
logicalman's picture

How will the economy improve???

The figures will be 'seasonally adjusted'


Wed, 01/01/2014 - 22:21 | 4292252 icanhasbailout
icanhasbailout's picture

People will save a lot of money by forgoing health insurance.

Wed, 01/01/2014 - 22:45 | 4292313 newprepper
newprepper's picture

Remain calm ! All is well! ........not.

Wed, 01/01/2014 - 22:47 | 4292317 Walt D.
Walt D.'s picture

The 894 people that earn more than $20 million make more than 99.99989% of Americans, and are compensated a cumulative$37,009,979,568 per year.

More class warfare drivel - the Federal Government spends $37 billion every 3 days - they can not tax their way out of this predicament.

Any time you see or hear the term "middle class" it is a dead give away that you are reading or listening to propaganda.

Also, the median household income is $51,000.

Class warfare is a ruse to distract you from the real culprits - the Fed and the Federal Government.


Thu, 01/02/2014 - 12:12 | 4293280 RKDS
RKDS's picture

And the Federal Reserve and Federal Government are controlled by who?

Yeah, that's what I thought.

Wed, 01/01/2014 - 23:52 | 4292440 ak_khanna
ak_khanna's picture

As the consumers willingness to spend drops in the face of falling incomes with little potential to borrow and spend in the backdrop of rising cost of living, there is little probability of an economic recovery in the near future. 

 Moreover the weakness in the democratic process ensures the victory of the Wall Street over the Real Economy for the foreseeable future. Things are definitely going to get much much worse before they get better for the real economy i.e. for more than 90% of the population.

Thu, 01/02/2014 - 00:07 | 4292470 Youri Carma
Youri Carma's picture

Indeed in the end it it all boils down to this simple question: "How Will The Economy Improve In 2014 If Almost Everyone Has Less Money To Spend?". Because if one knows the simple fact that our Western economies are driven by over a 70% consumer spending and that’s us, one hasn’t to be a rocket scientist to figure that one out. The problem is simple: Personal Income Growth Continues To Wane


Thu, 01/02/2014 - 04:27 | 4292675 dunce
dunce's picture

Several NFL teams in the play offs have filed to sell thousands of tickets. Some think that people have lost interest, i think money is just too tight after 5 years of democrat control of our government. Maybe obama will order The fed to buy up tickets and redistribute them to his voters.

Thu, 01/02/2014 - 08:59 | 4292812 SWRichmond
SWRichmond's picture

"NFL should be alarmed that three of four playoff games, including Green Bay's home game, still not sold out"

Nobody has any money.  No currency, either.

Thu, 01/02/2014 - 07:56 | 4292767 GCT
GCT's picture

2014 the Can will continue to be kicked.  Watch the Ten year as it continues to rise stalling the so-called housing boom.  All the bears will finally throw in the hat and hte market will crash.

Unemployment will indeed go below 6.5% as the unemployment benefits will not be extended and of course we do not count people off the govt dole.

Europe will indeed become the Dictatorship of Euope without  shot fired and of course the politicians and beaurocrats in charge will have legal immunity. 

More and more of our wages will be confiscated once the full blown healthcare law is implemented. 

The taper will stop once we hit the new recession we never left!

Happy New Year to all of the ZHer's and I look forward to coming here daily to read and learn.

Maybe it was better to take the blue pill and have some imaginary steak afterall we will no longer be able to afford real steak anymore! 


Thu, 01/02/2014 - 08:58 | 4292807 Rising Sun
Rising Sun's picture

When Barry gets back from Hawaii, he's going to be sending our MOAR FEWD STAMPZ!!!!


Right Barry?  You fucking piece of dogshit.

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