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Real Disposable Income Plummets Most In 40 Years

Tyler Durden's picture


We may not know much about "Keynesian economics" (and neither does anyone else: they just plug and pray, literally), but we know one thing: when real disposable personal income drops by 0.2% from a month earlier, and plummets by 2.7% from a year ago,  the biggest collapse since the semi-depression in 1974, something is wrong with the US consumer.


And longer-term chart:

Source: BEA


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Fri, 01/31/2014 - 10:14 | 4387549 Dr. Engali
Dr. Engali's picture

WTF happened? The Bernank and Zero happened, that's WTF.

Fri, 01/31/2014 - 10:15 | 4387569 Oh regional Indian
Oh regional Indian's picture

WTF! This is WTF time all around. The UK is partially flooded as NEVER BEFORE IN RECORDED HISTORY.


Plus, the supply side paradigm of consumer bads companies make people spend on shit that was once far away wants, now needs.

I need an iPhone. Like that.


Disposable income is for the MyRA, tuppence at a time.


Fri, 01/31/2014 - 10:18 | 4387591 TeamDepends
TeamDepends's picture

And these numbers are calculated in 2009 dollars!

Fri, 01/31/2014 - 10:21 | 4387595 Occident Mortal
Occident Mortal's picture

So QE was trickling down?

Fri, 01/31/2014 - 10:22 | 4387604 MillionDollarBonus_
MillionDollarBonus_'s picture

This yet another reason why you should always store a good portion of your savings in high interest savings accounts and risk free US treasuries. The silverbugz who saw their disposable income fall this year are also sitting on huge losses – the last thing they need.

Read about the irresponsible attitude and narcissistic tendencies of one silver bug "Jack Riley" in today’s exclusive article at the Accredited Times:

Fri, 01/31/2014 - 10:24 | 4387617 Jack's Digestib...
Jack's Digestible Ideas's picture

Have you ever heard a death rattle before? Do you think it will live up to its name?

Fri, 01/31/2014 - 10:32 | 4387630 knukles
knukles's picture

We don't need no steenking savings!

That's what the fuck savings are for! 

To Spend

Tha'ts what bumpers on cars are for.  To mash the shit out of driving recklessly in accidents
That's what bankers are for.  To not give you your money back

I mean, Let's Get Real People!


BTW, I got a new form to sign and send to the IRS from my accountant.  It says that I hereby yada yadda yaddddda do swear that all my shit is real and reported.  A whole brand new form

What the Fuck Ever Happened to the Paperwork Reduction Act of 1980?

Fuckers forgot abouut it didnja?

Fri, 01/31/2014 - 10:44 | 4387715 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

When you pay your taxes it helps to remember that you are part of the problem.

I am getting ready for next quarter already.

Fri, 01/31/2014 - 11:15 | 4387816 WarriorClass
WarriorClass's picture

You may not know much about Keynesian economics, but you can learn a lot about it by reading what Keynes himself said about it:

"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls . . . become 'profiteers', who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished not less than the proletariat. As the inflation proceeds . . . all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless." From pages 220-233 of The Economic Consequences of the Peace (1919), by John Maynard Keynes

Fri, 01/31/2014 - 12:05 | 4388095 kralizec
kralizec's picture

Hence, I refer to our current oppressors as Neo-Keynesians as they threw out his warnings along with the concept of the word "temporary" a long long time ago.

Neo-Keynesians are much much more nefarious!!!

Fri, 01/31/2014 - 11:24 | 4387862 PT
PT's picture

Can anyone remind me what "disposeable income" is?  Back in the day when I was a factory slave, my expenses were $360 per week and my after tax income was $380 per week ( I did night shift ).  So a 2.7% drop in my wages would have given me a loss of $10.26 thereby dropping my "after expenses" income ( or "profit" ) from $20 to $9.74.  

Or does "disposeable" refer to the $20, a 2.7% drop being 54 cents, still leaving me $19.46? 

Fri, 01/31/2014 - 11:49 | 4388032 Offthebeach
Offthebeach's picture

Anything above you living off rat traps, pigeons, dumpsters and a new to you coat every year is 'disposable'. As in you will be disposed of that money. After all, compared to the worlds leader in efficient labor cost, North Korea LLC, you/me/we are way over compensated.

Fri, 01/31/2014 - 13:59 | 4388555 tarsubil
tarsubil's picture

All the Paperwork Reduction Act does is create paperwork. One of the truly dumbest jokes in American government history.

Fri, 01/31/2014 - 10:32 | 4387649 XitSam
XitSam's picture

Mr. Bonus,

My silver ounces weigh the same as last year and the year before. No losses.

Sincerely, Xit Sam

Fri, 01/31/2014 - 11:19 | 4387701 MillionDollarBonus_
MillionDollarBonus_'s picture

You can't sell them for as much as you could last year. Accountants count that as a loss, but for some reason silverbugz think they are invincible and that losses don't count for them.

Fri, 01/31/2014 - 11:24 | 4387860 Panem et Circus
Panem et Circus's picture

I understand you're striving hard for sarcasm here, so I'll forgive the innacuracy. But losses are only incurred when/if you sell

Fri, 01/31/2014 - 11:46 | 4388009 LawsofPhysics
LawsofPhysics's picture

Precisely, and when you are preserving your wealth, you are not selling.  Personally, I have never had trouble getting someone else to work for PMs or changing them into whatever the fiat du jour happens to be.


Fri, 01/31/2014 - 14:23 | 4388651 Moronicgenius
Moronicgenius's picture

Physics,  I had a B-day party for my wife a couple years back at one of the local restaurants.  Talked to the owner about paying the bill with a roll of Eagles (Ag), he looked at me like I was some kind of Kook!  He would've made out like a bandito, as it was at a Mexican restaurant.


By the way, where you at, I'll clean your toilets and do your laundry for Ag!

Fri, 01/31/2014 - 10:32 | 4387656 Jack's Digestib...
Jack's Digestible Ideas's picture

As an aside, MDB, your refreshing commentary is always appreciated by those here who are really in the know. Thank you.

Fri, 01/31/2014 - 10:43 | 4387710 Spastica Rex
Spastica Rex's picture

Shit, I was afraid I wasn't really in the know.

Fri, 01/31/2014 - 10:36 | 4387659 LawsofPhysics
LawsofPhysics's picture

"high interest savings account" -  LMFAO!!!  If you are suggesting that interest need to rise, then you are correct, why don't you go tell that to Janet Yellen.  You are halarious.  Yes, we should have high interest savings accounts, unfortunately The Fed has kept interest rates zero-bound for years.  No troll like the original troll, nice work MDB.

Fri, 01/31/2014 - 10:34 | 4387663 NoDebt
NoDebt's picture

Welcome back, MDB.  I never realized how good we had it with you until Satoshi and Fonestar tried to fill the troll vacuum you left behind.

Fri, 01/31/2014 - 10:39 | 4387682 fooshorter
fooshorter's picture

High interest savings account? your losing your magic touch MDB



Fri, 01/31/2014 - 12:52 | 4388318 atomp
atomp's picture

MDB is actually a gold bug. (Comedy GOLD, bitchez!)

Fri, 01/31/2014 - 10:44 | 4387706 HamRove
HamRove's picture

I have a feeling that the article describes his marriage and "narcissistic" attitude.

He's waiting on a million dollar bonus that will never happen.

Fri, 01/31/2014 - 11:26 | 4387775 PT
PT's picture

Savings?  What the fuck are savings?  Are you new here, boy?  High interest savings?  Is that when you get 96 cents interest for a year's worth of cashflow but then you have to pay $36 in bank fees?  Go back to sleep.

You think the sun only shines when you open your mouth?  Get your head out of your arse and you might see things a bit clearer.  But stay away from the rest of us.  Your shit does stink and we can smell it a mile away. 

Fri, 01/31/2014 - 17:36 | 4388618 RKDS
RKDS's picture

I know MDB is trolling but no kidding just the same.  My very small side business directs electronic payments into an account where they're left alone.  Last week I was notified that I wouldn't receive some tax form because my dividends were too low.  Almost $3000 had returned less than $2.  Wow.  Back before the depression, the "terrible" 1% rate on a garden variety savings account would've done ten times better!

Sat, 02/01/2014 - 03:18 | 4390820 DontGive
DontGive's picture

On the other hand, less compliance, score!

Think of all the free time you now have from not having to file that 1099, I'm jelous...

Sat, 02/01/2014 - 03:24 | 4390823 PT
PT's picture

The rot started with wages being directly deposited into bank accounts.  Suddenly the banks lost their biggest, most important competitor - non participation.  Very hard to get paid in cash over here.

What happened to all them security guards that used to deliver the weekly payroll? 

Fri, 01/31/2014 - 11:22 | 4387851 Bangin7GramRocks
Bangin7GramRocks's picture

It's cool. Some guy on CNBC said that flexible working hours and paid vacation makes wages worth way more than 40 years ago. See, the middle class is keeping up.

Sat, 02/01/2014 - 01:18 | 4390664 InjectTheVenom
InjectTheVenom's picture

Fuckin A !   Plus, Obama promised a 'Year of Action"  !!   We're cool !!  

Fri, 01/31/2014 - 11:28 | 4387883 G-R-U-N-T
G-R-U-N-T's picture

Waiting for the idiots in Washington to raise more taxes and fees so everyone can have even less disposable income.

Fri, 01/31/2014 - 10:23 | 4387613 DblAjent
DblAjent's picture

1070s: "How do we get people to work longer hours for less money and still buy unnecessary shit?"


40 years later, here we are in a faux economy of crony capitalists, corporatocracy and consumerism. THAT is our culture.

Get out now or go down with the turds.

Fri, 01/31/2014 - 10:32 | 4387660 dryam
dryam's picture

CREDIT has propelled the rocket-ship of growth over the past 40, particularly the past 15 years.  The booster rockets are burning out and GRAVITY always wins.  The rocket is coming back to earth.

Be prepared.

Fri, 01/31/2014 - 10:46 | 4387724 AlaricBalth
AlaricBalth's picture

To quote Henry Hill (Ray Liotta) in Goodfellas: "Business bad? Fuck you, pay me. Oh, you had a fire? Fuck you, pay me. Place got hit by lightning, huh? Fuck you, pay me."

Total Consumer Credit Owned and Securitized since 1943

Fri, 01/31/2014 - 11:27 | 4387889 ReactionToClose...
ReactionToClosedMinds's picture

that's just precious .....  pay me .....back

Fri, 01/31/2014 - 11:30 | 4387903 ReactionToClose...
ReactionToClosedMinds's picture this a prediction ...the Mob is going to make a comeback ....  collection skills never ever go out of fashion.


Fri, 01/31/2014 - 10:38 | 4387688 Croesus
Croesus's picture

The LESS people play into this bullshit, the faster we FORCE TPTB to show their hand. 

Goldbugs: Holding a Royal Flush

Hoarders: Holding a Royal Flush

Gun Owners: Holding a Royal Flush

Other Tangible Asset Holders: Holding a Royal Flush

Politicians: Holding 1 pair

Banksters: Should've folded out, while they still could. the future: 

Banksters will be disinterred, to have stakes driven through their hearts. It's the only way to kill them. And y'all thought Vampires were just a legend.  



Fri, 01/31/2014 - 10:41 | 4387704 TeamDepends
TeamDepends's picture

Yeah, the politicians are holding your pair.

Fri, 01/31/2014 - 13:12 | 4388388 Meat Hammer
Meat Hammer's picture

Yep, the bankers have been buying the pot with the big stack for years.  We could have a queen, ace, suited with a jack, king suited in the flop but THEY have the stack so they don't have to play their cards.

Until they do...

Fri, 01/31/2014 - 10:40 | 4387698 DblAjent
DblAjent's picture

should read "1970s"

My proofreader is off today

Sun, 02/02/2014 - 20:53 | 4394472 bonin006
bonin006's picture

Thanks for the clarification. I was afraid the IRS had come out with another form we had to fill out.

Fri, 01/31/2014 - 10:19 | 4387586 stocktivity
stocktivity's picture

Deflation coming to your country soon.

Fri, 01/31/2014 - 10:25 | 4387625 Rainman
Rainman's picture

SNAPS and unemployment check cuts < short WalMart > < long Fitty Cent Stores >

Fri, 01/31/2014 - 10:32 | 4387650 TeamDepends
TeamDepends's picture

How about "Make Us An Offer" stores?  Let's see, I got two dimes, a shoelace, a Hope And Change poster....

Fri, 01/31/2014 - 11:33 | 4387919 ReactionToClose...
ReactionToClosedMinds's picture

can I get a franchise?

Fri, 01/31/2014 - 11:46 | 4388002 OldE_Ant
OldE_Ant's picture

I have hope and looking for change?

Fri, 01/31/2014 - 10:37 | 4387678 LawsofPhysics
LawsofPhysics's picture

"Deflation in plastic crap you don't need, hyperinflation in everything you need to survive." - FIXED.

Fri, 01/31/2014 - 10:19 | 4387592 Stuck on Zero
Stuck on Zero's picture

I know what happened to my disposable income.  The government disposed of it.


Fri, 01/31/2014 - 10:26 | 4387598 slaughterer
slaughterer's picture

MyRA + Obamacare = all your discretionary income belongs to us.  No more iPhone or X-Box for you.  

Fri, 01/31/2014 - 10:28 | 4387629 The Duke of Skiatook
The Duke of Skiatook's picture

How long will it be before your favorite sneaky uncle sam creeps into your bedroom late one night with a raging hard on for a piece of your 401(k)'s ass? 

Fri, 01/31/2014 - 14:23 | 4388649 SDShack
SDShack's picture

Don't worry. To entice the Free Shit Army, the govt will offer you a nice new piece of shiny iShit for opening a MyRA.

Fri, 01/31/2014 - 10:32 | 4387640 RSloane
RSloane's picture

No one leveraged cheap labor abroad more than the American consumer. There were clear watersheds throughout this process that were largely ignored in favor of cheap grills and tatty clothing that falls apart in the washing machine. At the end of that process we have Bernanke and Zero that absolutely refuse to allow that process to reverse itself, and in fact willfully contribute to its continuance.

Enter TAFTA and TPP. Thanks, Obama!

Fri, 01/31/2014 - 10:45 | 4387717 Dr. Engali
Dr. Engali's picture

Good morning Sloane


It is amazing to watch isn't it? The nation is slowly dying no matter what they do, and the sheeple still continue to believe that their guy can fix it if only.......

Nobody wants to take the medicine this country needs, which is a reset so the system can cleanse itself.

Fri, 01/31/2014 - 10:59 | 4387759 RSloane
RSloane's picture

G'morning Doc. Good to see you.

The media has become an excuse machine for "if only". Nothing is anyone's fault or responsibility unless its the other guy's political party. Then its all their fault. Politicians in this country  have been elevated to pop culture status that demands idolization of its class, meaning that people at political rallies resemble 11 yr old girls at a Justin Bieber concert and less like informed citizenry.

Nobody wants to take the medicine. You are absolutely right. Its only fair that the other guy drink the medicine first because, after all, its his fault. I have seen 5 yr olds take more responsibility for their behavior than most politicians, yet we keep voting them in.

Fri, 01/31/2014 - 10:30 | 4387647 National Blessing
National Blessing's picture

I don't have two nickels to rub together.  I'm a broke dead dick.  Oh well.

Fri, 01/31/2014 - 10:39 | 4387685 A Man without Q...
A Man without Qualities's picture

Actually what happened was that last year there was a big one time boost from the expectation of tax code changes, some bonuses were paid earlier etc etc.  

Fri, 01/31/2014 - 11:02 | 4387773 jerry_theking_lawler
jerry_theking_lawler's picture

I can tell you WTF happened (and is happening)...



Fri, 01/31/2014 - 12:50 | 4388310 midtowng
midtowng's picture

You have to wonder how far in the future that our GDP will be revised much lower.

Fri, 01/31/2014 - 10:16 | 4387552 buzzsaw99
buzzsaw99's picture

i think you meant to write "kenyan economics"

Barack Hussein Obama, Sr was a Kenyan senior governmental economist...

Fri, 01/31/2014 - 10:16 | 4387580 Pickleton
Pickleton's picture

Dreams FROM my father...

Fri, 01/31/2014 - 10:25 | 4387616 slaughterer
slaughterer's picture

This sucka is goin' down.  

Fri, 01/31/2014 - 10:13 | 4387553 madcows
madcows's picture

Hey, look.  He's got three more years to make this worse than the 70's.  Shazaam!

Fri, 01/31/2014 - 10:25 | 4387624 slaughterer
slaughterer's picture

He just executive decisioned himself a 3rd term, so make that another 7 years of Tele-Mulatto and Wookie.  

Fri, 01/31/2014 - 11:06 | 4387789 RSloane
RSloane's picture

Hi Slaughterer. You were absolutely right in your characterization of Obama and what can happen when an idol ceases to be idolized. Great call on your part.

Fri, 01/31/2014 - 11:47 | 4388015 onewayticket2
onewayticket2's picture

While the thought of annointing himself a third term has probably gone through his head, it was quickly overriden by the thought of Bill and Hillary..............and Vince Foster.

Fri, 01/31/2014 - 10:13 | 4387554 new game
new game's picture


Fri, 01/31/2014 - 10:23 | 4387608 Oh regional Indian
Oh regional Indian's picture

The poorest "health-care" joke system in the world and a set of companies out to get you with every non-natural additive they can, and strange trails from the sky and flouride in the water....

It's a surprise people can even stay cogent. I went nuts....

Sometimes I get th efeeling that BO is merely getting the population  ready for Hill Areeee......he died, we cackled.....

Holy shiite, president H Cleeton sounds positively shudder-inducing....and she is looking younger in her recent pictures...

Free Vince Foster....unleash the crackhead....


Pardon the tangents, but it is the road less travelled....


Fri, 01/31/2014 - 10:37 | 4387681 Possible Impact
Possible Impact's picture

Triclosan: The Soap Ingredient You Should Never Use

Triclosan, a high production volume ingredient used as a bactericide in
personal care products such as toothpaste, deodorant, and antibacterial
soap, has been linked to heart disease and heart failure in a new study.

Triclosan Was First Registered as a Pesticide

Triclosan May Also Alter Hormone Regulation

Fri, 01/31/2014 - 10:15 | 4387556 Max Damage
Max Damage's picture

Yeah but Twatter and Farcebook are going to rule the world, so stop worrying about shite

Fri, 01/31/2014 - 10:15 | 4387562 Crawdaddy
Crawdaddy's picture

Tax strike!

Fri, 01/31/2014 - 10:16 | 4387564 LawsofPhysics
LawsofPhysics's picture

Here's a thought, let China open their books to world and have the funcking reserve currency.  Please, the plan since 1971 has been to get everyone to work for chinese wages.

Let me be clear, roll the mother fucking guillotines, absolutely nothing will change otherwise.

Your "representation" was bought and sold years ago sheeple.  You are fully owned now, and your owners want more.

Fri, 01/31/2014 - 11:03 | 4387776 Deepskyy
Deepskyy's picture

I'm fully on board with it.  Let those mean little bastards take over.  See how long it takes before the whole shitshow collapses and we can get a proper shooting war going. 


These piddly little regional conflicts are never going to provoke our economy. /s/

Fri, 01/31/2014 - 11:10 | 4387802 LawsofPhysics
LawsofPhysics's picture

That which cannot be sustained, won't be, period.

Same as it ever was.

Fri, 01/31/2014 - 10:15 | 4387570 Truther
Truther's picture

Blame the FUCKED UP FED and their "screw the middle class policy". Enough already.... Why not just collapse this freakin' nightmare.

Fri, 01/31/2014 - 10:26 | 4387619 ArkansasAngie
ArkansasAngie's picture

If I could push the button I would.

The change I want isn't going to happen as long as the PTB are the PTB.  Why?  Causin ... I'd ditch liquidity for solvency.  Of course the PTB are all insolvent.

Fri, 01/31/2014 - 10:17 | 4387571 alien-IQ
alien-IQ's picture

If you step out of the Hamptons and visit the parts of this country where a Mercedes Benz is NOT the typical second car, these figures should come as a surprise to absolutely nobody. Unfortunately, those tasked with interpreting this data live in the kind of bubble that makes this information seem...otherworldly.

Fri, 01/31/2014 - 10:21 | 4387601 Jlasoon
Jlasoon's picture

"Groupthink" is a nasty little theory.

Fri, 01/31/2014 - 10:44 | 4387712 RaceToTheBottom
RaceToTheBottom's picture

I life in FSA country and in what used to be called "black" neighborhoods the car of "making it" has changed from Caddies to Mercedes.  Lost the house but bought the car.  All of them have damage, either purchased that way or behaviourly added later on....

Just the way it is

Fri, 01/31/2014 - 10:53 | 4387739 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Precisely why MLK's dream has been everyone else's nightmare.

Fri, 01/31/2014 - 13:30 | 4388459 Meat Hammer
Meat Hammer's picture

I had dinner with a buddy of mine in Santa Clara, CA the other night.  This is the city where the 49ers new stadium will be, in the heart of Silicon Valley.  I looked around the packed restaurant and had a Saving Private Ryan moment (hat-tip fonzannoon) where the room went quiet and all I saw were rich statist libtards in slow-motion, clinking wine glasses and laughing, toasting to good times that will never end.  I wondered how many of them had ever left their cocoon and driven east to the central valley, which relies on actual free-market capitalism to survive, not inflated tech stock shares, to see the aftermath of their votes for higher taxes and more regulation. 

When I left the restaurant and was walking to my car I saw a sea of luxury imports with Obama-Biden bumper stickers and laughed to myself as I thought of the looks they'll have on their smug faces when they see it all collapse.  I then climbed into my 12 year-old, paid-off suv and drove home with a warm & fuzzy feeling in my soul.  

Fuck em all.

Fri, 01/31/2014 - 10:16 | 4387575 the not so migh...
the not so mighty maximiza's picture


Fri, 01/31/2014 - 10:36 | 4387670 shanearthur
shanearthur's picture

Fall FORWARD! HOPE you land on some spare CHANGE!

Fri, 01/31/2014 - 10:16 | 4387577 youngman
youngman's picture

Its called..Fees..service all increasing and eating up any gains and then some of ones income...

Fri, 01/31/2014 - 10:19 | 4387581 Sardonicus
Sardonicus's picture

Remember they don't look at inflation on things you NEED like food and energy.  So, if after buying things you NEED, that have in many cases risen 100% in the last 5 years, you would not have a lot left over for buying 2nd houses, third cards, or a 1"-bigger-than-i-have-now flat screen tv.

Fri, 01/31/2014 - 10:17 | 4387585 luckylongshot
luckylongshot's picture

WTF is going on when ZH pretend that they are surprised that disposable income plummets? This is not rocket science. When wages stagnate and debt increases the probability of disposable income dropping is 100%. This is how the banksters rape us.

Fri, 01/31/2014 - 10:17 | 4387587 joego1
joego1's picture

That sucking sound is getting down to it's last slurps.

Fri, 01/31/2014 - 10:18 | 4387590 MarkD
MarkD's picture

If we increase EBT and disability payments it should fix it

Fri, 01/31/2014 - 10:35 | 4387668 pods
pods's picture

I'm thinking a raise in the minimum wage. You know, so high schoolers can buy more dime bags.

Of course, the rest of us get a paycut as prices rise to reflect this raise.


Fri, 01/31/2014 - 10:22 | 4387594 pashley1411
pashley1411's picture

Hmm, and probably noone is, yet, paying for that Obamacarepseudoinsurance-thingy.   (I'm signed up, not received correspondence or bill yet).  Where "mandates" and "confiscation" is the new normal.  

But Obama is on it.   He just introduced a retirement plan where the money goes in, but if you try to claim it, you get a free IRS audit.   America, hell yea!. 

Fri, 01/31/2014 - 10:20 | 4387596 Jason T
Jason T's picture

This is Bernanke's legacy.. it's gone no where since 2006.  

Fri, 01/31/2014 - 10:45 | 4387718 RaceToTheBottom
RaceToTheBottom's picture

Don't forget the Greenspam.  Give that SOB his due, too

Fri, 01/31/2014 - 10:20 | 4387600 ZeroPoint
ZeroPoint's picture

Let's see, The Federal Reserve was created, then Nixon ended the gold standard and unleashed China on us. Then the savings and loan bailout gave corporations carte blanche to get bailed out, then Clinton ramped up Globalization, then Glass-Steagal was removed, then all the banks became insolvent, and then Fed accelerated the dollar collapse, and now Obama is signing us on the TPP and mandatory health taxes.




Fri, 01/31/2014 - 10:28 | 4387634 new game
new game's picture

the trend is NOT your friend...

Fri, 01/31/2014 - 10:31 | 4387653 GeezerGeek
GeezerGeek's picture

A minor point perhaps, but you forgot FDR confiscating all the gold that We the People held. 1933, I think.

Fri, 01/31/2014 - 10:39 | 4387686 LawsofPhysics
LawsofPhysics's picture

Not really.  My grandfather had plenty that was not confiscated.  You see, the thing about laws that can't be enforced is that they really aren't "laws" at all.

Fri, 01/31/2014 - 10:53 | 4387738 ZeroPoint
ZeroPoint's picture

Exactly. In times of desperation, they will go after the easy targets. Mining companies, bullion banks, retail bullion dealers, commercial vaults, and safety deposit boxes. Everything else isn't worth the time or 'money'.


Fri, 01/31/2014 - 10:21 | 4387602 Kaiser Sousa
Kaiser Sousa's picture

bye bye miss america pie....

Fri, 01/31/2014 - 10:22 | 4387605 F em all but 6
F em all but 6's picture

Disposable Income. Were you misinformed??? It wasnt yours to dispose of. So the fed did it for you.

Fri, 01/31/2014 - 10:22 | 4387607 Seasmoke
Seasmoke's picture

There must be a main street that runs thru wall street.....because Bernanke said QE has definitely helped main street ....either that or he is fucking liar

Fri, 01/31/2014 - 10:33 | 4387664 GeezerGeek
GeezerGeek's picture

He whispered "the" when he said that. He really meant the main street, which in his opinion is Wall Street. 

Fri, 01/31/2014 - 10:23 | 4387610 Critical Path
Critical Path's picture

Yes we can......?

Fri, 01/31/2014 - 10:24 | 4387611 Sean7k
Sean7k's picture

My wife had a performance review and when the topic of a raise came up she was told,"your position is at market value".

My wife is incedibly competent and always goes the extra mile (hope you're reading this honey), but she has been denied a raise for two years, with an inflation rate of at least 7%.

Then people wtf when disposable income falls? Really?

Fri, 01/31/2014 - 10:32 | 4387652 youngman
youngman's picture

The problem the USA faces is that your wife is probably overpaid compared to the world workforce....we have to cut our costs to get back will take a few generations..but that is where we are going...think third world county where many people do labor for very little..hand work..will people learn to sew again and work in a sweat shop..I think a generation or two...

Fri, 01/31/2014 - 10:40 | 4387690 GeezerGeek
GeezerGeek's picture

Nothing will be more effective to achieve this goal than to grant amnesty to the millions of illegal immigrants who came here. Grant them legal status, allow them to apply for jobs more openly, and watch wage rates fall. After all, it's not like they're going to compete for bankster jobs. And there are side benefits to said legalization:

More Americans will be looking for more handouts from the gubbermint, yielding more votes for the self-anointed.

No more worries for the self-anointed that they will be rejected for government positions because they hired illegal nannies.

I can't go on. I'm getting depressed.


Fri, 01/31/2014 - 10:49 | 4387729 RaceToTheBottom
RaceToTheBottom's picture

Your comment either was sarc or did not take into account the relative values of currencies.  In swiss franc land, Baristas make 75-100G, cause the coffee costs 15-20$.

Hellova lot of equalization from there

Fri, 01/31/2014 - 11:02 | 4387772 Cannon Fodder
Cannon Fodder's picture

That's what I've been calling the race to the bottom...


Fri, 01/31/2014 - 12:52 | 4388305 Sean7k
Sean7k's picture

There are many problems with your reasoning here, but that may be intentional. One, not all jobs are global, therefore global wage rates should have limited effect, depending on the industry. Two, you fail to consider inflation of the currency and who is best positioned to benefit from it. There is a reason why income equality is becoming such an important issue. Three, there are bankers and corporate management all over the globe, but this phenomenon is mainly restricted to humbler employment positions. Four, people in power are capable of rewarding the groups they want to control. 

This issue is not so simple to throw the globalization argument out and expect it to fly. Yes, wage pressure exists for some. 

My point was this: why would anyone be surprised by declining disposable income? We shouldn't, because that is what overlords do when the slave population exceeds its' need. The excess will be culled.

Fri, 01/31/2014 - 10:43 | 4387707 Colonel Walter ...
Colonel Walter E Kurtz's picture

Unfortunately that is exactly what is happening. Our firm is trying to raise prices so that raises can be given, and guess what....cannot land any work. Layoffs imminent. I guess the current wages (no raises in 3 years) are not even at market value. There is an over supply of labor so we have wage deflation going on. Right now, if you have a decent/good job that actually pays you money, make sure you hold on to it.   

Fri, 01/31/2014 - 10:53 | 4387735 RaceToTheBottom
RaceToTheBottom's picture

Hang on with both hands and all teeth.

I thought being a generalist would help me being employed.  Two years of unemployment later, I found being a specialist is the key.  I hope it last a few more years....

Also the other key is building your own brand.  Assume that you are always unemployed and operate from there.

Fri, 01/31/2014 - 11:05 | 4387778 Cannon Fodder
Cannon Fodder's picture

Last year it took me 6 months to find a job. I finally found one - but two titles lower than I was and making the same amount of money that I did back in 2001. That is a fall in disposable income....

Fri, 01/31/2014 - 11:18 | 4387832 LawsofPhysics
LawsofPhysics's picture

Welcome to the global ponzi.  Compared to people in other countries, your wife is overpaid.

Fri, 01/31/2014 - 11:35 | 4387929 madcows
madcows's picture

better than our company.  we've had one raise in the last 6 years.  they don't even bother to do reviews.  "the economy has been tough" they say.

Fri, 01/31/2014 - 10:24 | 4387612 taketheredpill
taketheredpill's picture



The recession that was supposed to happen in 2000 then 2003, postponed to 2009, temporarily delayed until 2014?

And the can that was kicked has morphed into an oil drum, then a storage tank,...



Fri, 01/31/2014 - 10:24 | 4387622 RockRiver
RockRiver's picture

Oh, who cares? I have beer, football, and pussy. I'm good to go.....



Fri, 01/31/2014 - 10:27 | 4387627 Typing Typer
Typing Typer's picture

Bullish retail!

Fri, 01/31/2014 - 10:28 | 4387628 praps
praps's picture

Plenty of savings still to be spent.

Fri, 01/31/2014 - 10:32 | 4387636 dobermangang
dobermangang's picture

Wait until the end of this year when most companies stop paying for insurance for their employees and throw them onto the health care exchanges.  Then the crap really hits the fan.  No disposable income for the masses.  The number of small businesses closing the next 2 years will be devastating.

Fri, 01/31/2014 - 12:26 | 4388200 skipjack
skipjack's picture

Yep. My CPA, who does the taxes for about 120 small corporations, says that most of his clients are doing away with employer health insurance, as they have no profit and sometimes not even enough left after to meet payroll.


So yeah, the end of 2014 is gonna be "interesting".

Fri, 01/31/2014 - 10:30 | 4387645 new game
new game's picture

no mun no fun; got visa, lets go!

Fri, 01/31/2014 - 10:31 | 4387651 Hulk
Hulk's picture

This is the end my friend...


Fri, 01/31/2014 - 10:44 | 4387709 GeezerGeek
GeezerGeek's picture

Other applicable titles that showed up when I followed that link: "When The Music's Over" and "Comfortably Numb".

Fri, 01/31/2014 - 10:34 | 4387662 The worst trader
The worst trader's picture

Disposable income was spent by paying our mortgages to keep our cedit scores up................why I do not know.will default anyway. then  our favorite hedgies can rent it to us at a discounted price.

Fri, 01/31/2014 - 10:52 | 4387737 Racer
Racer's picture

If you don't have any credit cards or debt those facts lower your credit rating!

Fri, 01/31/2014 - 10:33 | 4387666 Al Capowned
Al Capowned's picture

I wrote about one of the casuses of this the other day, Inflation for essentials services utilities,rent,energy, petrol, food caused by QE is killing disposable income.

Fri, 01/31/2014 - 10:41 | 4387695 martens50
martens50's picture

This makes it much more difficult for me to remain calm...

Fri, 01/31/2014 - 10:52 | 4387732 TonyCoitus
TonyCoitus's picture

Bullish! BTFD Bitchez!

Fri, 01/31/2014 - 10:55 | 4387743 istt
istt's picture

Notice anything interesting about these charts?  Every time disposable income plummets, they rocket back up almost instantaneously.

Fri, 01/31/2014 - 10:56 | 4387748 Quinvarius
Quinvarius's picture

Kenesian Collectivism lacks a useful method for transferring money out of the banking system/Government into the productive economy.  You don't get paid for work.  You get paid to be connected.  It is just a bunch bankers and politicians in a dark basement of a shack, back in the woods, far off of main street, masterbating. 

Fri, 01/31/2014 - 10:58 | 4387750 CuriousPasserby
CuriousPasserby's picture

All my disposable income goes to stacking. Instead of going to the mall or Amazon, I just go to a coin show or bullion dealer and turn my fiat into bullion.

Fri, 01/31/2014 - 11:06 | 4387779 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Besides stacking Ive stocked up on lots of booze, I don't want to miss out when the shtf.

Fri, 01/31/2014 - 11:34 | 4387922 CuriousPasserby
CuriousPasserby's picture

And don't forget lead and toilet paper.

Fri, 01/31/2014 - 10:59 | 4387757 Son of Loki
Son of Loki's picture

Stores and malls are empty this week. I don't know if it's just post-holiday norm or a reflection of the Brokeback Consumer.

Also noted two more vacated stores...I wish they wouldn't put black curtains in the windows of these empty bankrupt stores. Gives the appearance of....a Depression.


Fri, 01/31/2014 - 11:00 | 4387762 deerhunter
deerhunter's picture

So a "number of small businesses will be closing in the next two years."  Really?  Look around?  I think there is even a website dedicated to dead shopping malls.  I mean dead as in all the way closed down not just 30 to 40% vacancy like a "normal" mall.  The mall where wife and I walk has more employees than shoppers.  If it didn't have a food court I don't think there would be any shoppers.  The people eating at the food court are mall employees.  If you make 9 bucks an hour how can you spend an hour's wages before taxes for an overpriced greasy burger or some three day old stir fried rice?  It is all broken.  America,  glad I knew ya!!!  Oh,,, wait until you get your nat gas and electric bills next month.  Supposed to be below zero again next week here in N Illinois.

Fri, 01/31/2014 - 11:19 | 4387836 Carl Popper
Carl Popper's picture

Real median wages per worker praked in the 70's.

Thus the two income family

And thus the DINK couples and individuals who never marry or never support their kids if they ever have any.

A family is outside of the budget for many.

Fri, 01/31/2014 - 11:21 | 4387846 abgary1
abgary1's picture

Corporate profits are at an all time high at the expense of the workers.

Low wages, reduced hours and no benefits.

Who has disposable income besides the rich?

Fri, 01/31/2014 - 11:49 | 4388027 endorush
endorush's picture

my credit card gives 3% cash back on groceries, 2% cash back on select department stores, and 1% on everything else.  that adds up over time you know.  and high yield monthly dividend stocks on DRIP major compounding effect.  the money practically grows itself.  I buy a flatscreen and its a free meal or 2. 

Fri, 01/31/2014 - 12:09 | 4388121 rwe2late
rwe2late's picture


the fees charged to the retail stores by the credit card companies

are not reflected in higher prices for everyone,

and a bigger cut in the overall economy for the parasitic financial sector.

Fri, 01/31/2014 - 12:34 | 4388241 Staplegun
Staplegun's picture

I just did my taxes for this year...cap gains was nasty. No more purchasing power know...stimulate the economy through investments and purchases. 

(Also less money to stack pm's.)

Fri, 01/31/2014 - 12:50 | 4388308 rosiescenario
rosiescenario's picture

With all the savings folks are about to experience in their health insurance, this temporary drop in disposable income will surely be remedied.

Fri, 01/31/2014 - 13:02 | 4388355 mwrobe1
mwrobe1's picture


Fri, 01/31/2014 - 14:34 | 4388684 Moronicgenius
Moronicgenius's picture

Disposable income, HaHHHHHHHHH!

My take home pay has gone down and everything that I need has gone up!  What little disposable income I had, I ended up losing in a terrible boating accident.



Fri, 01/31/2014 - 15:09 | 4388810 PTR
PTR's picture

It's not really news if we already knew it was coming.  

Fri, 01/31/2014 - 16:04 | 4389067 dash8flyer
dash8flyer's picture

So why is this chart telling such a different story just asking?

Fri, 01/31/2014 - 20:29 | 4390026 rational
rational's picture

I don't know much about the validity of drawing conclusions from one month of a choppy time series, but I'm sure I should BUY GOLD!

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