EDITOR'S NOTE: Unproductive debt (borrowed capital that can’t generate more capital) benefits nobody, save for counterfeiters who can get away with printing illegal money or the US government who can coerce money from its citizens while printing “legal” money that violates the laws of sound economics. Everyone else, meaning the majority of law-abiding Americans, is subject to the often irresponsible monetary and fiscal policies, such as the ones that led us to our current inflationary condition. According to last November’s consumer credit report, consumer debt rose 7.9% year over year while the savings rate plunged to -64.8% in the same period. After yesterday’s CPI reading, we now know that inflation eased back to 6.5%. The Fed’s target is 2%. In short, we’ve got a long way to go before the cost of living eases back to favorable levels, assuming that inflation won’t once again spike back up.
As we are painfully aware, inflation is still high at 7.1% Year-over-year (YoY). To cope with inflation, consumers have been gutting their savings and increasing their use of credit. In November, consumer credit increased 7.9% YoY while personal savings fell -64.8% YoY.
Source: Confounded Interest
The good news? Inflation month-over-month is expected to be 0% tomorrow.
So, inflation will be gone in November?
Originally published at Confounded Interest