This is just fucking crazy. It explains, among other things, the record trade deficits, bottlenecks, bottlenecks and inflationary pressures.

By Wolf Richter to the WOLFSTRASSE.

Personal income from all sources, including $ 1,400, which rose 21% in March and 31% as of March 2019, to a seasonally adjusted annual rate of $ 24.2 trillion (historical WTF) at the moment the impact is felt of the historical WTF overshoot triggered by the last round of stimulus payments.

A month ago, after personal income fell in February, after the January surge sparked by the $ 600 votings sparked in late December, I said: “We are waiting with feverish anticipation to see what this graphic will look like for March and April when the $ 1,400 votes arrive. It’ll blow our socks off. “

Hahaha, sure. This is just fucking crazy. Here I present you the latest and greatest WTF card of the year:

Income from voting, unemployment insurance and social benefits exploded, driven by the Stimmies who arrived in the personal treasuries of millions of households in March, according to the Economic Analysis Office today. Unemployment benefits rose slightly in March from February, but were lower than in January, accounting for only 10% of the total at an annualized rate of $ 541 billion:

Income from wages and salaries rose in March 1.1% from February to a seasonally adjusted annual rate of $ 9.8 trillion. Other hotel workers, including restaurants and hotels, have been postponed. Some salary increases, including higher state and local minimum wages, were fed into the data.

A year ago, higher-paid workers who worked in offices kept their jobs but switched to work from home. And in the upper price segment, especially for executives, there have been many increases in salary packages. Job losses have been concentrated in the lower end of the income spectrum, particularly in the hospitality and travel industries. This lower end put some of the workers on hold:

People were spending some of the money they got from heaven.

Durable goods spending increased 10.8% from February to a seasonally adjusted annual rate of $ 2.0 trillion in March, a 33% increase from March 2019.

A month ago, when durables fell in February after the $ 600 voucher was issued in January, I said, “Now everyone is counting on the fat new voicers to reverse this fiasco.” And they did it for another WTF moment:

Expenditure on consumer goods – mainly food and gasoline – rose 6.5% from February to $ 3.4 trillion (seasonally adjusted annual rate) in March, an increase of 15% from March 2019:

Expenses for services, That had gone nowhere for six months rose 2.2% from February to $ 10.0 trillion in March (seasonally adjusted annual rate), but was still 2.9% below its high in February 2020.

Services include rentals, mortgage payments, health care, education, insurance, travel bookings, cell phone subscriptions, broadband and streaming services, power services, haircuts, ball games, movie tickets, gym membership, etc. The services the pandemic is offering has been a very mixed one Pocket, with a couple of services, like streaming services, that killed it; and many other services, such as gyms and travel bookings, are being knocked down.

Total consumer spending – so wonderfully nourished by this free money from heaven – rose in March from February by 4.2% and from March 2019 by 7.2% to a seasonally adjusted annual rate of 15.4 trillion US dollars:

Inflation galore, but not included.

Inflation has risen sharply in the past few months and it has occurred everywhere at all levels of the economy as companies face skyrocketing input costs and need to raise prices to protect their margins, and as their customers – other companies and consumers – pay these higher prices.

In the first quarter, this was shown in yesterday’s publication of GDP data, in which the The inflation index, which adjusts GDP to inflation, rose by 3.8% on an annual basis in the first quarterThis is more than double the fourth quarter rate and shows just how much inflation has accelerated. So part of the spike in spending shown here in all its glory is due to large price increases.

The whole stimulus thing explains that Record blowout trade deficits since many of these goods are imported, the bottlenecks are numerous bottlenecks, the Blowout freight expenses, and the Massive inflationary pressures are building up along the wayamong other things distortions.

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