• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

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

....is 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. 


Fast-forward...to 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.  

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