clipped from: dailyreckoning.com   
inasmuch as the world economy is now in a deflationary correction, the risk of inflation seems very, very remote. So, for the time being, the United States seems to be able to borrow almost unlimited amounts of money at very low interest rates.
look at this chart that appeared in The Wall Street Journal.
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Bloomberg reports that consumer spending is rising.
The Wall Street Journal, however, reports that savings rates are going up.

The Richebächer Letter’s Rob Parenteau is scratching his head at this contradiction in trends. “Oddly,” he writes to his subscribers, “along with flat consumer spending, the gross personal saving rate has surged to nearly 7%, yet the unemployment rate has kept climbing. How is that combination possible? Specifically, where is the household sector getting the income growth to both increase saving and stabilize spending levels when job cuts remain alarmingly high?”