The Federal Reserve’s massive liquidity transfusions into the Wall Street financial sector eliminated debt obligations and pumped new life into global financial institutions.
It did very little, however, to relieve debt/liquidity distress and restore American families to financial health.
Real Median Household Income has slumped hard over the past 17 years…
And now U.S. citizens are getting squeezed hard by stagnant trends in real disposable income and rising trend in cost of living.
“… the recent surge in consumer debt without a subsequent increase in consumer spending shows the financial distress faced by a vast majority of consumers. The first chart below shows a record gap between the standard cost of living and the debt required to finance that cost of living. Prior to 2000, debt was able to support a rising standard of living, which is no longer the case currently.”
With a current shortfall of $18,176 between the standard of living and real disposable incomes, debt is only able to cover about 2/3rds of the difference with a net shortfall of $6,605. This explains the reason why “control purchases” by individuals (those items individuals buy most often) is running at levels more normally consistent with recessions rather than economic expansions.
It is time to ‘re-target’ liquidity flows – and eliminate massive debt burdens at ground level, relieve debt-service obligations, and restore financial health to U.S. citizens.
The Leviticus 25 Plan 2018 – $75,000 per U.S. citizen