The government calculates savings by totaling up after-tax income and subtracting spending. The remainder is considered savings even if it is used to pay debts.
Consumers who can are paying off debt. So debt is shrinking (i.e. lenders assets are shrinking) and that which is left has a higher risk of default.
"Gold is not an investment, it’s money." I believe it should be, and perhaps it will be in the future, unfortunately, right now it is not. Belief trumps reality. Belief always finds evidence to reinforce Belief, until something real destroys it. That something real may well have arrived to create the new Belief.
Is It Time to Abandon the U.S. Dollar and Go for Gold? [View article]
Whistling Past the Graveyard? [View article]
Consumers who can are paying off debt. So debt is shrinking (i.e. lenders assets are shrinking) and that which is left has a higher risk of default.
Has Gold Reached Bubble Territory? [View article]
Belief always finds evidence to reinforce Belief, until something real destroys it.
That something real may well have arrived to create the new Belief.