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Congratulations, we've made it! Private household debt in the United States has reached a record high. Despite, or perhaps despiteCongratulations, we made it! Household debt in the United States has reached a record high. Despite, or perhaps because of, the rapid rise in interest rates, people are plunging deeper and deeper into debt to get through the month. We can see this very clearly in the rising credit card debt.
This is good news for all those who have switched their currency to hard assets these days and can now watch in peace and quiet as the fiat credit circus enters the next round and opens the gates again for new liquidity. The election-related proposal by both governments to give homebuilders a gift of $10,000 paid out of $400 a month to finance a mortgage alone shows where the journey is headed.coupled with the exploding national debt of Western economies, this is a toxic cocktail that we can no longer banish from the system out of pure economic growth.
Welcome to the financial death spiral.
The remedy for excessive borrowing is higher interest rates, to incentivize saving. However, when people can't afford to service their debt, they end up borrowing even more. Lowering rates will just make credit cheaper so people will also save less in that scenario.
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Debt Jubilee here we come.
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Whatever they do, I predict it will be good for Bitcoin.
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This spiral is going to come quick and hard.
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109 sats \ 1 reply \ @kepford 15 May
Seems like this should be bigger news. Maybe it is. I don't pay close attention. I wonder why its not... hmm. Makes you wonder.
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Its interesting that you dont see this on the main news.
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It's the same situation everywhere except India and Brazil. The US is tied into a catch catch situation for now. The debt thing is sitting very deep in every majOr sector there. My friends living there have told me that they are eying a complete breakdown of US economy before 2030.
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11 sats \ 1 reply \ @TomK OP 15 May
Athena, are You greek?
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Can't say it here, sorry. It's best to hold privacy I think. I can just tell you that I'm a professor of Classical Literature in India.
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Ouch. Stuff is really getting out of hand. I thought after covid, it would get a bit better. A lot of people were saving money.
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Just following the example of the elected leaders.
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