Friday, June 26, 2009

More proof that Gov't is the net supplier of private savings



Latest personal income and spending data released

Personal income rose by $173 billion in May from April, however, private wages and salaries fell by $12 billion. So where did the gains come from? Government spending. Gov't transfer payments (social security, medicare, medicaid, disability payments, unemployment insurance, etc) rose by $162 billion. The rest of the gains came from higher interest payments that the government paid, $8 billion.

Private savings went from a record nominal amount of $602 billion in April, to another record nominal amount of $769 billion.

By the way, savings did not come from people spending less as we often are told. Personal consumption declined by only $62 billion from Q1 2008 to Q1 2009, and private wages and salaries declined by $140 billion. Yet savings grew by over $400 billion! There's no way you can lose $140 billion in income and spend $62 billion less and come up with $400 billion in additional savings! No way...mathematically impossible unless the savings just fell out of the sky.

Basically, that's what happened...

GOVERNMeNT IS THE NET SUPPLIER OF PRIVATE SAVINGS!!!

If you don't see this by now you're blind!


3 comments:

googleheim said...

I CHECKED IN ON SOME OF NOAM CHOMSKY'S BS ON THE ECONOMY

HE EVEN SAYS THINGS LIKE TAX-PAYER-ON-THE-HOOK.

WHAT A WASTE OF MIT.EDU STUDENT FEES !

I = S

STF said...

Good one, Goog

Quite hypocritical for him to critique mainstream economics then apply it unwittingly. Seems to be the rule, rather than the exception on the far left, though.

Can't figure out if that's less forgivable than the gold lovers on the right unwittingly assuming US is on gold and then arguing that going on gold is the solution to everything.

Scott

googleheim said...

LIKE I THOUGHT BEFORE :

WE ARE TAKING TURNS MAKING OUR CURRENCIES STRONG / WEAK / STRONG / WEAK WITH UK AND EU

SO WE CAN PAY OFF EACH OTHERS' DEBT AT OPPORTUNE TIMES OF CYCLE ?

WATCH THE EURO

IF IT DOES NOT WEAKEN THEN THE CURRENCIES ARE RIGGED !!!

NOW IS THE TIME FOR USD TO GO STRAIGHT UP IN STRENGTH AGAIN RIGHT ????

UNLESS THERE IS RIGGIN' !!!


SANFORD'S CRY FOR ARGENTINA IS A WARNING SIGN THAT WE ARE GOING TO DEFAULT ON OUR DEBT ????

HAR HA WHOOPS MAYBE ?