Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By CoyotePrime (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Devastating Consumer Financial Cliff Coming Right Up

Sunday, August 30, 2020 19:17

% of readers think this story is Fact. Add your two cents.

“Devastating Consumer Financial Cliff Coming Right Up”

by Mike Shedlock

“Consumers continued to spend in July but it won’t last.

Click image for larger size.

Real Spending vs Real Income

Click image for larger size.

Personal Income and Outlays, July 2020: The charts reflect data from today’s BEA report on Personal Income and Outlays, July 2020. Personal income increased $70.5 billion (0.4 percent) in July. Disposable personal income (DPI) increased $39.9 billion (0.2 percent) and personal consumption expenditures (PCE) increased $267.6 billion (1.9 percent).

Real DPI decreased 0.1 percent in July and Real PCE increased 1.6 percent. The PCE price index increased 0.3 percent. Excluding food and energy, the PCE price index increased 0.3 percent. On the surface, things look ok. Real Disposable Personal Income (DPI) was down a mere 0.1 percent while consumer spending more than held up. Personal Consumption Expenditures (PCE), consumer spending, rose 1.6%.

Ominous Picture: This is an ominous picture because the Congressional Covid stimulus expired on July 25. That’s when the last weekly stimulus check of $600 was sent. As of August 28, consumers will have missed 5 weekly checks of $600 each.

How Many People? The answer comes from my post yesterday “Unemployment Claims are Still Extremely Elevated.“

All Continued Claims: Over 27 million people missed 5 weekly checks of $600 each. Here’s the math: 27 million * 5 * $600 = $81 billion dollars.

Click image for larger size.

That is money consumers don’t have to pay the rent, pay mortgages, or but food. Some of those checks went to people working part-time. Continued claims represent people not working at all.

Continued Claims: Continued claims are covered employees who worked no hours. That’s at least 14.5 million. But that total does not include gig workers, self-employed, and other workers not covered at the state level.

Click image for larger size.

My best guess is around 20 million people are solely reliant on pandemic assistance. Of them about 6 million have no money coming in at all. 14.5 million have only state benefits and that is not nearly enough to pay the bills.

Congressional Bickering: Congressional bickering over the amount of stimulus has been ongoing for months. Forbes has the latest details as of today. According to Reuters, Meadows said the $1.3 trillion bill was offered to Democrats privately. In their first conversation in weeks, Meadows and House Speaker Nancy Pelosi (D-Calif.) spoke for 25 minutes via phone on Thursday but did not make any progress towards reaching an agreement.

Meadows described the call as “25 minutes of nothing,” Fox Business reported, and Pelosi said in a statement that the conversation made it clear that “the White House continues to disregard the needs of the American people.” Pelosi also said Thursday that Democrats were “not budging” on their latest offer.

No End in Sight to Bickering: Despite over 20 million people are severely impacted and have been for 5 weeks, there is no end in sight to the bickering.

Financial Cliff Has Started: A financial cliff is not coming up, it has already started. It will show up in the August data accompanied by a jump in evictions and repossessions.”

- https://www.zerohedge.com/

Source: http://coyoteprime-runningcauseicantfly.blogspot.com/2020/08/devastating-consumer-financial-cliff.html

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

LION'S MANE PRODUCT

Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules

Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.

Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.

Comments

Online:
Visits:	1,657,445,558
Stories:	8,299,091