The numbers say the economy is doing great. So why does it feel so bad?
Last week, the Bureau of Labor Statistics reported that the economy added 336,000 jobs in September.
That was nearly double what economists were expecting. Unemployment is holding steady at 3.8%.
But Americans aren’t feeling great.
The University of Michigan Consumer Sentiment Index measures how people feel about their finances and the economy. In September, it dropped for the second month in a row to a value of 68.1.
That’s lower than it was in the first month of the pandemic. And worse than sentiment in early 2008 during the Great Financial Crisis.
Today I’ll show you why Americans are feeling uncertain and what it means for the economy. I’ll also give you a glimpse into what’s coming next and give you an opportunity to prepare and even profit before it’s too late…
American Uncertainty and What it Means for the Economy
Have you checked your bank account lately?
If you’re like most people, the money you have saved away may be falling fast…
A recent report from the San Francisco Fed shows that Americans have spent most of the money they saved during the pandemic.
And Bloomberg reports that after adjusting for inflation, 80% of people have less money saved than they did in March 2020.
Though inflation slowed down from last year, it is still too high. The Core Consumer Price Index (CPI) measures changes in the prices paid by consumers over time.
Over the past year, it has increased by 4.3%. Meanwhile, wages have increased by just 4.2%.
In August, the CPI rose by 0.6%. That was the biggest increase since January. Gas prices are going up. Mortgage rates hit a 23-year high.
And as of this weekend, Israel declared war on Hamas – which means oil and gas prices likely won’t be going down any time soon.
Americans can’t keep up. They’re racking up debt and falling behind.
Credit card debt hit $1 trillion for the first time ever in June of this year.
Data from the New York Fed shows that auto loans and credit card balances more than 30 days late are at higher levels than before the pandemic. And those numbers keep going up…
On top of that, student loans – which make up 9% of the debt Americans owe – were on pause for the last three years. But people will have to start making payments again this month.
That’s a big warning sign…
More than two-thirds of our economy depends on consumer spending.
So if people are running out of money to spend, the economy will slow down… and may accelerate the coming recession or something much worse…
So how can you prepare for what’s coming next?
Prepare for an Even Greater Wealth Transfer
If Americans are rating this economy lower than they did during the Great Financial Crisis, there’s a reason.
In addition to the depletion of Americans’ savings accounts, an enormous wealth transfer of $30 trillion dollars is currently taking place from the federal government to the wealthy elite.
In other words, massive amounts of American taxpayer dollars are about to be given to Wall Street.
And as The Wall Street Journal put it, this transfer will make “Wall Street richer at Main Street’s expense.”
Many Americans will suffer even more as Wall Street goes on to double… even quadruple their money… in one very specific corner of the market…
And you and countless others will likely be on the wrong side of this – regardless of politics or who you vote for – if you do not prepare in the coming months.
To help you take advantage of this wealth transfer and take back the money, I put together a special briefing.
As we face a decline in savings… a volatile future… and a faster path to recession… It’s more important now than ever to boost your income.
To find out how to take back the money that was pulled from your pocketbook, click here.
Happy SWAN (sleep well at night) investing,
Brad Thomas
Editor, Intelligent Income Daily