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19 Signs That The U.S. Consumer Is Tapped Out

19 Signs That The U.S. Consumer Is Tapped Out



You can’t get blood out of a rock. Traditionally the United States has had a consumer-driven economy, ...

You can’t get blood out of a rock. Traditionally the United States has had a consumer-driven economy,
but now years of declining incomes and rising debts are really starting to catch up with us. In order to
have an economy that is dependent on consumer spending, you need to have a large middle class.



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    19 Signs That The U.S. Consumer Is Tapped Out 19 Signs That The U.S. Consumer Is Tapped Out Document Transcript

    • 19 Signs That The U.S. Consumer Is Tapped Out Michael Snyder Economic Collapse March 14, 2014 You can’t get blood out of a rock. Traditionally the United States has had a consumer-driven economy, but now years of declining incomes and rising debts are really starting to catch up with us. In order to have an economy that is dependent on consumer spending, you need to have a large middle class. Unfortunately, the U.S. middle class is steadily shrinking, and unless that trend is reversed we are going to see massive economic changes in this country. For example, in poor neighborhoods all over America we are seeing bank branches, car dealerships and retail stores close down at an alarming rate. If you didn’t know better, you might be tempted to think that “Space Available” was the hottest new retailer in some areas of the nation. On the other hand, if you live in San Francisco, New York City or Washington D.C., things are pretty good for the moment. But as a whole, the condition of the U.S. consumer continues to decline. Incomes are going down, the cost of living is going up, and debts are skyrocketing. The following are 19 signs that the U.S. consumer is tapped out… #1 Real disposable income per capita continues to fall. In the fourth quarter of 2012, it was sitting at $37,265. By the time that the fourth quarter of 2013 had come around, it had dropped to $36,941. That means that average Americans have less money to go shopping with than they did previously. #2 In January, real disposable income in the U.S. experienced the largest year over year decline that we have seen since 1974. #3 As disposable income decreases, major retailers are closing thousands of stores all over the country. Some are even calling this “a retail apocalypse“. #4 From September 2013 to January 2014, the personal saving rate in the United States dropped by a staggering 16 percent. #5 During the fourth quarter of 2013, we witnessed the largest increase in consumer debt in this
    • country that we have seen since 2007. #6 Fewer Americans are applying for mortgages these days. In fact, the MBA Purchase Applications Index is now the lowest that it has been since 1995. #7 Overall, the rate of homeownership in the United States has fallen for eight years in a row. #8 Many Americans are finding it increasingly difficult to afford a new car or truck. The following comes from a recent CNBC article… A new study shows the average household in 24 of America’s 25 largest metropolitan areas cannot afford to pay for the average priced new car or truck. “Just because you can manage the monthly payment doesn’t mean you should let a $30,000 or $40,000 ride gobble up such a huge share of your paycheck,” said Mike Sante, managing editor of Interest.com. “Many people are spending money on a car payment that they could be saving.” #9 Incredibly, 56 percent of all Americans now have “subprime credit” at this point. #10 Total consumer credit has risen by a whopping 22 percent over the past three years. #11 In the third quarter of 2007, the student loan delinquency rate was 7.6 percent. Today, it is up to 11.5 percent. #12 Overall, U.S. consumers are $11,360,000,000,000 in debt. #13 While Barack Obama has been in the White House, median household income in the United States has fallen for five years in a row. #14 U.S. workers are taking home the smallest share of the income pie that has ever been recorded. #15 One recent study found that about 60 percent of the jobs that have been “created” since the end of the last recession pay $13.83 or less an hour. #16 Middle-wage jobs accounted for 60 percent of the jobs lost during the last recession, but they have accounted for only 22 percent of the jobs created since then. #17 According to one recent survey, only 35 percent of all Americans say that they are better off financially than they were a year ago. #18 In 2008, 25 percent of all Americans in the 18 to 29-year-old age bracket considered themselves to be “lower class”. In 2014, an astounding 49 percent of them do. #19 The poverty rate in America has been at 15 percent or above for 3 consecutive years. That is the first time that has happened since 1965. Despite what the mainstream media keeps telling them, most Americans know on a gut level that there is something fundamentally wrong with our economy. According to Gallup, “Unemployment/Jobs” is the number one issue that Americans care about these days and the “Economy in general” is the number three issue that Americans care about these days.
    • Most people just want to work hard, make a decent living and take care of their families. Sadly, that is becoming increasingly difficult to do. And the numbers that I have shared above only tell part of the story. For a more personal side to all of this, I encourage you to read my previous article entitled “10 Stories From The Cold, Hard Streets Of America That Will Break Your Heart” if you have not done so already. The really bad news is that this is about as good as things are going to get for the U.S. economy. The long-term trends that are eating away at our economy like cancer are intensifying, and our “leaders” just continue to act as if “business as usual” will somehow get the job done. Most of them don’t even realize that time is running out. As I discussed yesterday, there is a lot of evidence that the massive financial bubble that the Federal Reserve has inflated is getting ready to burst. When the next great financial crisis does strike, it is going to be absolutely disastrous. We are in far worse financial shape than we were back then, and this next round of financial trauma could truly be the “knockout blow” for the U.S. economy. Let us hope for the best, but let us also prepare for the worst. This Is The Reality Of It: “We Are Factually In A Recession. Period.” Mac Slavo SHTFPlan.com March 14, 2014 We can cite scores of statistics and financials that prove without a shadow of a doubt that the U.S. economy is in a tail spin and won’t be recovering any time soon. Abysmal home sales, continued degradation in the national employment numbers, sky rocketing national debt, and ever rising consumer prices all point to serious problems. But one number in particular pretty much sums it all up. It depicts not just the worsening state of our economy, but puts the lies and machinations of the U.S. government on full display for the world to see.
    • You’ll often hear the media cite the U.S. Growth Domestic Product (GDP) as a measure of economic growth. It measures the rate at which our economy grows. In 2013, for example, our GDP was $17.08 trillion, up from the previous year’s $16.42 trillion. So, all of the goods and services sold throughout the United States (essentially, all of the money spent by Americans) rose about $661 billion dollars year- over-year. Most people might look at the number, see 4% growth, and say it’s a no-brainer. How can the economy not be growing if the GDP rose? The answer is simple. And when you look at it from the perspective Karl Denninger of the Market Ticker outlines below, you can’t help but realize that you’ve been purposely duped into believing that things are getting better. Just the opposite is true. When looking at GDP you absolutely must account for the manufactured credit infused into the system during this same time period. When you do you’ll see just why the economy is not growing in any way, shape or form. It is, in fact, contracting. However, The Federal Reserve added $1.112 trillion in credit (unbacked by anything) during the same period of time; that’s a debasement of the units in which GDP is reported of 6.51%. So the real change in the economy is in fact negative 2.51%. We are factually in a recession. Period. There can be no progress economically or politically until the lies are stopped. These are not mistakes; both the hosts and guest are fully-aware of The Fed’s balance sheet. That extra trillion dollars slammed into the system by The Fed pretty much wipes out any growth noted by the Federal government’s statistics, because we never actually earned that money. It’s debt. Not growth! Incidentally, the other oft cited measure of economic health is the Dow Jones Industrial Average, which
    • currently sits around record all-time highs of 16,000 points, is likewise benefiting from this illusion. Guess where that stock market “growth” came from? Yes, the very same credit being used to prop up the economy (that $85 billion or so in Fed Treasury purchases every month) is also keeping stocks at record highs. Back on Main Street, where most Americans live, we’re feeling the effects. Do we need to mention that the Patient Affordable Care Act has just forced working Americans to spend up to quadruple on their monthly premiums? Or that millions of Americans who are unemployed and no longer counted in the official statistics have absolutely no income whatsoever because their unemployment insurance has run out? Or that the price of everything from food and energy to rent and clothing is rising? That kind of thing tends to happen when you debase your currency. Last week famed contrarian economist John Williams noted that the economy gave apowerful recessionary signal in January that had not been seen since right before the market crash in 2007. Furthermore, one of the leading economic indicators of a recessionary environment is the price of copper because it is so closely associated with global growth. It has dropped significantly in recent months and it could well be signaling a coming crash in stocks just as it did in 2008. When, not if, this thing buckles again we’re going to be in for an unprecedented period in U.S. history. The system was on the brink of total collapse in 2008, as evidenced by Representative Brad Sherman on the House floor: Many of us were told in private conversations that if we voted against this bill on Monday, that the sky would fall, the market would drop two or three thousands points the first day, another couple thousand the second day, and a few members were even told that there would be martial law in America if we voted no. House Representative Brad Sherman (D-California) Debate on the House Floor, October 2, 2008 Rep. Brad Sherman Martial Law VIDEO BELOW http://www.youtube.com/watch?v=HaG9d_4zij8 They’ve used up all of the tricks in their magic hat. One misstep here and we’re going down. Any number of domestic or geo-political events could trigger a meltdown in U.S. stock markets and send the broader economy crashing. INFOWARS.COM BECAUSE THERE'S A WAR ON FOR YOUR MIND