Debt Deflation in America – What the Jump in the U.S. Savings Rate Really Means by Michael Hudson

Dandelion Saladby Michael HudsonGlobal Research, June 29, 2009Happy-face media reporting of economic news is providing the usual upbeat spin on Friday’s debt-deflation statistics. The Commerce Department’s National Income and Product Accounts (NIPA) for May show that U.S. “savings” are now absorbing 6.9 percent of income.I put the word “savings” in quotation marks because this 6.9% is not what most people think of as savings. It is not money in the bank to draw out on the “rainy day” when one is