ARTICLE

US Credit Card Debt Soars Most On Record With Savings Long Gone

News Image By Tyler Durden/Activist Post January 08, 2022
Share this article:

While it is traditionally viewed as a B-grade indicator, the November consumer credit report from the Federal Reserve was an absolute stunner and confirmed what we have been saying for months: any excess savings accumulated by the US middle class are long gone, and in their place Americans have unleashed a credit-card fueled spending spree.

Here are the shocking numbers: in November, consumer credit exploded by a whopping $40 billion, double the expected $20 billion print, more than double the $16 billion October number, and the highest on record!

And while non-revolving credit (student and car loans) jumped by a solid, if not necessarily remarkable $20 billion, this was only the 7th biggest increase for the series in record.

The real stunner was revolving, or credit card debt, which more than tripled in November, soaring to $19.8 billion from $6.6 billion in October, by far the highest such print on record.

While this unprecedented rush to buy everything on credit ahead of and during the Thanksgiving holiday should not come as much of a surprise, after all we have repeatedly shown that for the middle class any "excess savings" are now gone, long gone.

The fact is that most economists - such as those at Goldman Sachs - anticipate that continued spending of savings is what will keep the US economy levitating in 2022. 

Unfortunately, as today's consumer credit numbers clearly demonstrate, any savings that US middle class households may have had courtesy of stimulus checks, are now gone. 

The implications are profound: any model that projected that US spending will be fueled by "savings" can now be trashed. And since this is most of them, the consequences are dire as they confirm - once again - that the Fed is tapering, QTing and hiking right into a recession.

Originally published at Activist Post - reposted with permission.





Other News

July 09, 2025From Japan To The U.S - Earthquake Fault Lines Are Awakening

Is there a possibility that a cataclysmic eruption of Mt. Rainier could occur in the not too distant future? On Tuesday morning, Mt. Rain...

July 09, 2025When The Left Wants Blood: The Quiet Slide Toward Political Violence

Democratic lawmakers are hearing increasingly violent rhetoric from their constituents-calls to "break the rules," "fight dirty," and stop...

July 09, 2025The Digital Trap: Europe's Quiet March Toward Total Control

Imagine a world where every transaction you make, every website you visit, every thought you dare to express online is silently recorded, ...

July 09, 2025Shepherds Without Scripture: What Do Today’s Pastors Really Believe?

One in four Mainline clergy doubt the existence of God. These aren't fringe bloggers or deconstructing TikTok influencers. These are the m...

July 07, 2025Hijacking Creation: Scientists May Only Be Years Away From Lab-Made Children

In-vitro gametogenesis - the creation of human sperm and eggs from skin or blood cells--is now just years away. Scientists across Japan, C...

July 07, 2025Death To The IDF? The Disturbing New Normal On The Progressive Left

Once reliably pro-Israel, the Democratic Party has undergone a dramatic reversal on the Israeli-Palestinian conflict-and no demographic re...

July 07, 2025Access Denied: How Age Rules Could Reshape The Internet For Everyone

If identity becomes the new key to the internet, then the next great digital debate won't be about content moderation-it will be about acc...

Get Breaking News