FPSA consumer personal savings rate plunges to 10 year low while Amerikans splurge!

WASHINGTON (PNN) - December 22, 2017 - The latest confirmation that the Fascist Police States of Amerika consumer is now effectively tapped out came moments ago when the Department of Commerce reported that in November, Personal Income rose by a lower than expected 0.3% (exp. 0.4%), while FPSA consumers continued to splurge at an accelerated rate, with personal spending rising 0.6%, above the 0.5% expected, as Amerikans decided to splurge on holiday products and services. However, and speaking of savings, therein lay the rub, because as Amerikans splurged in November - and much of 2017 - the personal savings rate continued to decline, and in the latest month it tumbled from 3.2% to 2.9%, the lowest since November 2007, which is one month before the recession started.

This explains the surge in credit card usages. The 13-week annualized credit card balances in the FPSA have gone completely vertical in the last few months of 2017, a troubling sign and yet another confirmation that FPSA household savings are almost gone, forcing Amerikans to resort to savings.

What is somewhat strange is that this collapse in savings took place even as FPSA wage growth actually surprised to the upside, with wage growth rising at 4.5% Y/Y (private rose 4.8%, government 3.0%), more than core consumer spending (4.3%) for the first time since December 2015.

Yet despite this favorable wage background, Amerikans were not only unable to save but saw collective savings decline by $41 billion in November to $426 billion.

At this rate the Fed will have to step in and bailout the plunge in Bitcoin or else risk a complete collapse in holiday spending.