Ugly Q3 GDP Confirms Personal Consumption Collapsing
…Sadly not even Sandy can be blamed on the collapse in consumption in Q3, for the simple reason that the Hurricane did not hit until 1 month into Q4. Perhaps it is Sandy’s fault it did not hit sooner. In the meantime, all those hoping that the US consumer is finally waking up from his slumber and is spending (on credit of course) like a drunken sailor (for anything more than iPads using student loan proceeds), will have to wait until Q1 2013, as the Q4 2012 number will be even uglier than the one just released….
And a longer-term confirmation of the collapse of Personal Consumption courtesy of John Lohman:
U.S. Birth Rate Hits Record Low
The U.S. birth rate dropped to its lowest level since the beginning of the Great Depression, led by a drop among immigrants, according to a report data released Thursday by the Pew Research Center.
In 2011, the overall birth rate was 63.2 per 1,000 women of childbearing age, the lowest since at least 1920, Pew reported, citing numbers from the National Center for Health Statistics. The birth rate reached 122.7 in 1957, the peak of the Baby Boom. After the mid-1970s, the birth rate stabilized at about 65 to 70 births per 1,000 women annually, until the beginning of the Great Recession.
Since 2007, both the U.S. birth rate (the number of live births per 1,000 women ages 15-44) and the number of births have dropped significantly, according to the report.
Overall, the birth rate declined 8 percent from 2007 to 2010. Among U.S.-born women, the birth rate dropped 6 percent. The decline among foreign-born women was 14 percent. Among Mexican women, the birth rate fell even more, to 23 percent.
Mom, Dad? I’m 30 But Can I Still Live at Home?
You raise them, you educate them and you expect them to go out into the world. But they keep coming back.
The recession and weak recovery appears to be keeping many adult children from getting a home of their own, and that could have implications for the housing industry’s recovery.
A Census Bureau report released Wednesday found that between 2007 and 2011 there was a steady increase in the percentage of adults living in someone else’s house – and that increase has mostly been driven by adult children moving in with mom and dad.
In 2011, Census Bureau researchers found that 17.9 percent of people 18 and older, or 41.2 million people, lived in a house in which they weren’t the head of the household or that person’s spouse or significant other. That’s up from 16 percent in 2007, before the nation went into recession.
It’s Payback Time For Debt Of All Types!
National Debt Passes $16.3 Trillion
16,307,488,943,564.23 (Click the debt number to go to Treasury Direct)
The Daily History of the Debt Results
Historical returns from 11/16/2012 through 11/23/2012
The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.
|Date||Debt Held by the Public||Intragovernmental Holdings||Total Public Debt Outstanding|
Fiscal cliff combines tax hikes, spending cuts
So just what is this “fiscal cliff” that has the financial markets rattled and economists and policymakers alike in a tizzy over the potential for sending the economy into another tailspin?
It’s a one-two punch of expiring Bush-era tax cuts and major across-the-board spending cuts to the Pentagon and domestic programs that could total $800 billion next year, based onCongressional Budget Office estimates.
The cliff is the punishment for previous failures of a bitterly-divided Congress and White House to deal with the government’s spiraling debt or overhaul its unwieldy tax code.
Citigroup’s Wieting: Student Loans Burden US Economy
from Money News:
Borrowing for education will have “potentially lasting effects” on U.S. demand for houses, cars and other big-ticket items, according to Steven C. Wieting, Citigroup Inc.’s director of economic and market analysis.
Student loans surpassed credit cards last quarter to show the highest delinquency rate among U.S. consumer debt. The shift was chronicled in a report published two days ago by the Federal Reserve Bank of New York.
34 Signs That America Is In Decline
The following are 34 signs that America is in decline…
#1 According to the World Bank, U.S. GDP accounted for 31.8 percent of all global economic activity in 2001. That number dropped to 21.6 percent in 2011. That is not just a decline – that is a freefall. Just check out the chart inthis article.
#3 The United States has fallen in the global economic competitiveness rankings compiled by the World Economic Forum for four years in a row.
#4 According to the Wall Street Journal, of the 40 biggest publicly traded corporate spenders, half of them plan to reduce capital expenditures in coming months.
#5 More than three times as many new homes were sold in the United States in 2005 as will be sold in 2012.
#6 America once had the greatest manufacturing cities on the face of the earth. Now many of our formerly great manufacturing cities have degenerated into festering hellholes. For example, the city of Detroit is on the verge of financial collapse, and one state lawmaker is now saying that “dissolving Detroit” should be looked at as an option.
#7 In 2007, the unemployment rate for the 20 to 29 age bracket was about 6.5 percent. Today, the unemployment rate for that same age group is about 13 percent.
#9 If you can believe it, approximately one out of every four American workers makes 10 dollars an hour or less.
#11 Median household income in America has fallen for four consecutive years. Overall, it has declined by over $4000 during that time span.
#12 The U.S. trade deficit with China during 2011 was 28 times larger than it was back in 1990.
#13 Incredibly, more than 56,000 manufacturing facilities in the United States have been shut down since 2001. During 2010, manufacturing facilities were shutting down at the rate of 23 per day. How can anyone say that “things are getting better” when our economic infrastructure is being absolutely gutted?
#16 As I have written about previously, 61 percent of all Americans were “middle income” back in 1971 according to the Pew Research Center. Today, only 51 percent of all Americans are “middle income”.
#17 There are now 20.2 million Americans that spend more than half of their incomes on housing. That represents a 46 percent increase from 2001.
#18 According to the U.S. Census Bureau, the poverty rate for children living in the United States is about 22 percent.
#19 Back in 1983, the bottom 95 percent of all income earners in the United States had 62 cents of debt for every dollar that they earned. By 2007, that figure had soared to $1.48.
#20 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#21 Total credit card debt in the United States is now more than 8 times larger than it was just 30 years ago.
#22 The value of the U.S. dollar has declined by more than 96 percent since the Federal Reserve was first created.
#25 According to the U.S. Census Bureau, 49 percent of all Americans live in a home that receives direct monetary benefits from the federal government. Back in 1983, less than a third of all Americans lived in a home that received direct monetary benefits from the federal government.
#27 In November 2008, 30.8 million Americans were on food stamps. Today, 47.1 million Americans are on food stamps.
#28 Right now, one out of every four American children is on food stamps.
#29 As I wrote about the other day, according to one calculation the number of Americans on food stamps now exceeds the combined populations of “Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Iowa, Kansas, Maine, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Utah, Vermont, West Virginia, and Wyoming.”
#30 Back in 1965, only one out of every 50 Americans was on Medicaid. Today, one out of every 6 Americans is on Medicaid, and things are about to get a whole lot worse. It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.
#32 The U.S. national debt is now more than 23 times larger than it was when Jimmy Carter became president.
#33 According to a PBS report from earlier this year, U.S. households that make $13,000 or less per year spend 9 percent of their incomes on lottery tickets. Could that possibly be accurate? Are people really that foolish?
#34 As the U.S. economy has declined, the American people have been downing more antidepressants and other prescription drugs than ever before. In fact, the American people spent 60 billion dollars more on prescription drugs in 2010 than they did in 2005.
So what are our “leaders” doing about all of this?
They just continue to insist that everything is “just fine”.
**MARC FABER & JIM ROGERS: ‘Obama Is A Disaster, The Stock Market Should Have Fallen 50%, And You Should Buy Yourself A Machine Gun. I Need To Buy A Tank…’ ‘It’s Going To Be More Inflation, More Money Printing, More Debt, More Spending…’**