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Jump In Savings Rate Is A Warning Sign For Another Recession

Remember where I said this:

"Unlike in 2008, the savings rate isn't going up though (Chart 5). If this trend actually reverses upwards, the real collapse will start because when people save money, debt will be paid off and the currency supply will drop."

It has finally happened, the savings rate is going up to 6% (Chart 1). Credit is being repaid, the currency supply is going to shrink and the economy is on the verge of collapse, again.

Chart 1: Personal Savings Rate