If Savers Are Losers…. We’re Winning.

The latest report of the Bureau of Economic Analysis shows that in August, just as it was in July, the personal savings rate in this country dipped below zero. That’s worse than simply not saving. It means that, on average, we’re spending more than we are earning. Personal saving was a negative $61.8 billion in August, compared with a negative $100.9 billion in July. Personal saving as a percentage of disposable personal income was a negative 0.7 percent in August, compared with a negative 1.1 percent in July.

Would Robert Kiyosaki, author of Rich Dad Poor Dad, consider this to be a good thing? He concludes in his article that “savers are losers.”

Looking up at my rich dad I asked, “Does this mean money can be created out of thin air?” Nodding his head, my rich dad said, “Germany did it and now we are doing it.” “That’s why savers are losers,” he added.

In spite of all these increases in prices, the federal government’s economists say, “Inflation is low. It’s under control.” They are allowed to say that because the government is charged with only monitoring inflation in consumer prices — not asset prices.

The problem is our dollars return to the U.S. to buy our assets. In simple terms, we send cash overseas to buy goods, and overseas investors take our cash and use it to buy our assets. That’s why the Wal-Mart shopper finds bargains in the store but can’t afford to buy a house, gas, gold, or stocks.

In summary, investors shop for asset bargains, and consumers shop forconsumer bargains and try hard to save money that is not really money. That is another reason why the rich are getting richer.

So, I guess the answer depends on what we’re spending our money on…