Economic conditions are much worse than you are being told. Throughout the past year, prices have been rising much faster than most of our incomes have. As a result, our standard of living has been rapidly declining. It has become increasingly difficult for U.S. households to make it from month to month, and as you will see below, more than a third of all U.S. adults are actually relying on their parents to pay at least some of their bills at this point. But even more alarming is what has been happening to real disposable income. According to Fox Business, the most recent GDP report revealed that the decline in real disposable income that we witnessed in 2022 was the largest that has been measured since 1932…
The most troubling information in the GDP report is the precipitous drop in real disposable income, which fell over $1 trillion in 2022. For context, this is the second-largest percentage drop in real disposable income ever, behind only 1932, the worst year of the Great Depression.
Just think about that for a moment.
The last time real disposable income declined this quickly was literally during the peak of the Great Depression.
And as our incomes get squeezed tighter and tighter, more Americans are starting to fall behind on their bills.
For example, the proportion of subprime auto borrowers who are at least 60 days behind on their payments has just surged to the highest level that we have seen since 2008…
In December, the percentage of subprime auto borrowers who were at least 60 days late on their bills climbed to 5.67% — a major increase from a seven-year low of 2.58% in April 2021, according to Fitch Ratings. It marks the steepest rate of Americans struggling to make their car payments since the 2008 financial crisis.
Poster Comment:
Actually, money supply contracted 31% from 1929 to 1933 so we have a ways to go. I don't believe things will be super bad until 2024.