Friday, September 8, 2017

The cause of consumer deflation

Discretionary income not keeping up with debt service burden growth.  

Debt service burden (interest and principal repayment) is growing 2%, faster than the 1% growth in discretionary income for the average consumer. That means, after paying for basic needs like  shelter, food, healthcare, and utilities, there is less left over to pay back lenders. Middle income renters are in the toughest spot as  it looks like their borrowing has accelerated in auto, student, and personal loans, while their  disposable income growth has been below average.  The lowest income quintile is burdened by high and rising rent and healthcare costs.
Housing and Obamacare are killing the middle class.   Obamacare was designed to cause medical services inflation, a plot with the nurses union.  Housing costs rise with low mortgage rates, low mortgage rates result from rigging the ten year low so government can make interest payments.  

In other words, Dem progressives are killing off little brown people, and they are not even white!

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