Let’s see, the gross domestic product report supposedly surprised to the upside, but I suspect will be revised downward. Credit card delinquencies continue to rise toward record levels, not surprising with super-high interest rates. Personal income growth was low, and the personal saving rate is very low, consumers clearly having trouble keeping up with inflation in the real world–car insurance, food, electricity, health care, etc. all still seeing increased prices. The inflation component of the GDP report shows this–particularly in regard to health care which I have been warning will be a major contributor to inflation.
When you look under the hood, one thing to notice is that government compensation is rising much higher than that in the private sector, which is simply disgusting. Increasingly, private employees struggle while government ones deliver nothing and get excessive pay and benefits. Sooner or later this will collapse, either because record government deficit spending can’t continue or inflation resurges to a higher level. Meanwhile the average American continues to have difficulty making ends meet. (BEA Report)
