How Central Banks Widen Wealth and Income Gaps

https://mises.org/wire/how-central-banks-widen-wealth-and-income-gaps

America's Poor Spend 60% Of Their Income On Food & Housing Proving CPI Is Meaningless

http://www.zerohedge.com/news/2015-04-06/americas-poor-spend-60-their-income-food-housing-proving-cpi-meaningless

For many Americans, the rise in food and housing prices is a tough squeeze. That’s because—even in an era with low overall inflation—low-income Americans spend a disproportionate share of their money on food and housing.

New data from the Labor Department show the extent of the discrepancy. The bottom 10% of Americans, by income, devote 42% of their spending to housing and an additional 17% to food–nearly 60% of their total spending, according to the Consumer Expenditures Survey. By contrast, the wealthiest 10% of Americans dedicate only 31% of their spending to housing and 11% to food–closer to 40% of total spending…

Shocking Austerity: Greece’s Poor Lost 86% Of Income, But Rich Only 17-20%

Greece needs to exit the EU. They are starving their people. The transition won't be smooth, but it's better longer-term.

http://www.zerohedge.com/news/2015-03-20/shocking-austerity-greece%E2%80%99s-poor-lost-86-income-rich-only-17-20

How to Handle Your Income Portfolio in the Coming Debt Crisis

Here are two good thoughts on the creditworthiness of the US Treasury bond market, and spiking food prices. 

http://www.dailywealth.com/1715/How-to-Handle-Your-Income-Portfolio-in-the-Coming-Debt-Crisis#MN

FOMC press release

In the November 4, 2009 Federal Open Market Committee (FOMC) press release:

http://www.federalreserve.gov/newsevents/press/monetary/20091104a.htm

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Furthermore,

Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit.

My take: great, as the average worker is losing their job--or has their salary cut, and their home value is further eroding, and they can't get a loan, they're managing to spend more money.

Anything wrong with that picture?

Attention: Career Transitioners

It's a touchy subject, but a real one that needs to be dealt with: many in corporate America are being downsized--they're getting laid off. Some have emergency reserves to last them a few months while they land back on their feet. In this tough job market, a few months of unemployment may last a few quarters.

Whichever the case, if cash reserves are insufficient for living expenses, many have to resort to dipping into their qualified retirement savings plans, whether they are 401K's or IRA's. The catch is that if the candidate is under age 59 1/2, the penalty for early withdrawal is 10% under IRS tax codes (an additional 2 1/2% for California residents). These penalties are on top of any income tax events.

However, there is a way to withdraw from qualified accounts without incurring those penalties. It is under IRC Section 72(t). Contact me and we can go over how this tax code may provide you some relief. There are also annuity products out there that offer you bonuses of up to 15%, as well as guarantee you an income for life. In this market environment, they provide tremendous advantages in safety of principal, income, and growth.