US Personal Income Declines $505.5 Billion as Inflation RisesSubmitted by satoshi on Sat, 03/02/2013 - 11:36
The U.S. Bureau of Economic Analysis (BEA) released data Friday on personal income and expenditures that all should pay attention to.
Personal income declined a massive $505.5 billion dollars for the month of January at the same time as consumption expenditures rose $18 billion, or 2.4%, on an annualized basis. Unemployment is high, people are earning less, and yet the cost of living continues to rise. The Federal Reserve should really pat itself on the back for inflating equities and bonds, distorting credit markets, and price fixing our way to prosperity. May we forbid the ills of falling prices, which lower costs in a time of declining income, only to push ourselves to the apparently impossible Keynesian state of stagflation.