Real personal income and spending hold up (thank you, lower gas prices!) but still consistent with onset of recession This morning’s report on personal income and spending for November shows why I pay more attention to real retail sales as a forecasting tool. First, to the data: personal income increased nominally by 0.3% in November, […]

Guest post:  From reader McWop who has been a constant for a number of years, aka Matthew McOsker, writes on: How money enters the economy through deficit spending. A simple model for discussion. When the government deficit spends here are the mechanics: a) Government buys goods from some private entity, let’s say $1,000 worth. The […]