I saw this chart yesterday. It’s definitely not a good sign for things to come.

Americans are saving and paying off credit card debt at levels not seen in years, but where’s that money coming from? Increasingly, it’s not coming from work. As today’s chart (via David Rosenberg) demonstrates, a staggering proportion of American personal income now comes straight from government transfer payments — welfare, unemployment, etc.

And thus the process of household debt becoming government debt takes place.

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