A quarter trillion dollars in personal savings was just "revised away" from US households, who as a result have that much less purchasing power going forward.
As part of its historical revision to GDP, the BEA also had to adjust personal income and spending, with the full results released in today's July report. What it revealed was striking: over the revised period, disposable personal income for US household was slashed cumulatively by over $120 billion to just under $14.4 trillion, while spending was revised higher by $105 billion, to just above $13.8 trillion. There were two immediate consequences of this result.
First, as the following table shows, while government pay has remained roughly flat over the past 3 years, growing in the mid-2% to mid 3% range, wages and salaries for private workers have been steadily declining as the blue line below shows, and after hitting a 4% Y/Y growth in February, wage growth has slumped to just 2.5% in June, the lowest since January 2014 when excluding the one-time sharp swoon observed at the end of 2016.
But a more troubling aspect of today's revision is what the drop in income and burst in spending means for the average household's bank account: following the latest annual revision, what until last month was a 5.5% personal saving rate was revised sharply lower as a result of the ongoing downward historical adjustment to personal income and upward adjustment to spending, to only 3.8%.
http://www.zerohedge.com/news/2017-08-01/quarter-trillion-dollars-us-household-savings-was-just-wiped-away
one reply.................
Save_America1st's picture
Save_America1st Eager Beaver Aug 1, 2017 4:15 PM
given that these are government numbers I still don't believe them even if they've been revised down that much...I'd guess they even lied on the revision and that the true numbers are much lower. They lie so much and have lied for so long that they don't even know or understand that they don't use the correct stats anymore anyways.
Do they even take into consideration the massive devaluation of the dollar over the last 100+ years and the current rates of inflation? Do they even know how to calculate inflation anymore?
The FED scum continually lament about inflation being around the "2%" range when that is always clearly a fucking lie. The more true CIP is always calculated by John Williams of Shadow Stats: http://www.shadowstats.com/alternate_data/inflation-charts
How about lost interest on savings after all these years of zero or near negative interests rates?
How about the fact that most people in the U.S. are living on a whole lotta bad credit debt and don't have even 500 bucks cash on-hand for emergencies.
How about that most people, maybe 90 to 95% of Americans don't own even 1 ounce of silver for a rainy day?
How about that even less people have any understanding at all about cryptos like BTC, ETH, etc. or have even a small fraction of some money allocated into cryptos just as another type of hedge?
How about that most people who do have investments have them in fake bloated stawks that they don't even actually own that are nothing but digits on a website right now and that when the next major market correction of 5, 10, or 20% occurs it will wipe out many of those "wealthy" paper tigers out there. You can't eat Amazon stocks, bitchez.
Say goodbye to those already destroyed pensions and good luck ever getting anything out of those 401k's if you're currently under 60 years old. And if you are, I'd highly recommend liquidating that shit now and start stackin' phyzz.
Take all that into account and if anyone reading this is part of the vast majority of those who don't have assets allocated outside the bankster system at this point, well then you folks damn well better start stackin' cuz time's running out very quickly for those who aren't prepared when the SHTF.
just sayin'...
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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