BIDEN ECONOMY: As Recession Takes Hold Millions of Americans Are Accumulating Credit Card Debt to Get By
Americans are amassing credit card debt to get by in Joe Biden’s economy.
Biden and the mainstream news are not reporting that Americans are falling behind and employers have stopped recruiting for more than half a million jobs.
A survey of home builders has hit rock bottom. It hasn’t been this low since the Fauci and Birx economic shutdowns.
And now we know that things are only going to get worse. The descent is intensifying. Steve Cortes reported this on Bannon’s War Room.
Now this… Axios reported that Americans are surviving by racking up credit card debt. Credit cards account for almost one trillion of the $16 trillion in US household debt. Americans are spending less on travel and entertainment and more of food and clothing:
Driving the news: Credit-card balances are defying the gravitational pull of stubborn inflation and slower growth. They account for about $890 billion of Americans’ staggering $16 trillion in household debt.
What’s happening: Spending on experiences, like travel and entertainment, has supplanted physical goods like clothing and home items as the purchases of choice for consumers.
- They’re compensating for soaring prices by discount shopping — and using copious amounts of plastic to offset surging costs for food and gas.
- A Bloomberg report highlighted a worrying rise in delinquent accounts among lower-income and subprime borrowers. It raises questions about whether it could lead to a spiral of unpaid debts if the economy worsens.
“If your costs begin to exceed your income. What do you do? You look for a relief valve through borrowed money,” investor Peter Tarr said in a Twitter thread this week.
- Credit is “a smaller option for liquidity, there ‘just in case’ or to ease some costs. Then its loans / refinancing. Home sales etc,” Tarr noted…
…What we’re watching: Credit card issuers are leaning into Americans’ hunger for debt, primarily by offering travel-related bonuses and cash back on purchases, according to data from Wells Fargo.
- The survey found that 45% of Americans with rewards credit cards “rely on their credit card rewards to help offset some of the cost of everyday purchases.”
- Mastercard and Visa both of which reported booming earnings, even as retailers like Walmart, Target and Best Buy warned that soaring costs were leading to tons of excess merchandise.
What they’re saying: “No one can live on borrowed money forever,” Ron Hetrick, senior economist at Lightcast said this week, connecting the worker shortage to rising credit debt.
“There are 22 million people out of the labor force who are using credit cards to pay for their expenses. In a labor market with 10.7 million job openings, those potential workers can go a long way to addressing the talent shortage we’re seeing across the board,” he added.
Americans better buckle up. Things are only going to get worse under this regime. They planned it this way.