Posted on 11/25/2022 1:59:59 PM PST by entropy12
This is a direct result of savings accounts being drained because of Bidenflation. We’ve simply run out of cash. And good luck trying to liquidate your fun, expendable assets, like boats, motorcycles, and RVs, because most people can’t afford to buy them.
US Treasury debt now 150% of GDP. Which means government can not pay off any part of principle. Annual budget deficits are running multiple Trillion dollars now. US Treasury is currently paying out Billion dollars every day of the year in interest payments. That will soon double or triple due to federal funds interest rate jumping from less than 1% to reaching 5% in 2023.
(Excerpt) Read more at pjmedia.com ...
Can’t pay off the principal, either…sorry, couldn’t resist.
The likely extended economic downturn ahead is also coming, when nations are starting to build up to fight more obviously over natural resources (energy and other resources).
Yep
>>What would you suppose the interest rate on those cards would be?<<
Read the other day the average CC interest rate was 27.6%. Not sure if it’s true, but if so, that’s freaking legal loan sharking.
Got rid of my CC’s a few years ago. Hold an Amex I pay off each month. Never again will I pay CC interest.
Feel bad for folks with Adjustable-rate mortgages. Great when the rate is low, but boy oh boy the rates rise really fast.
>>High interest rates mean high profits for lenders.<<
Not exactly. Higher interest rates slow consumer credit in a few ways.
Lenders tighten borrowing requirements thus disqualifying many consumers. As the cost of money goes up it also pushes consumers out of the market for autos, homes and such. Lender profits in some cases will fall.
Debt-free since May 2020.
Credit card balance paid off every month.
No mortgage, no car payments...bought a used car last month CASH.
Last week I measured 4 things the farm can’t do without: fertilizer, diesel, heating oil for greenhouses, and soil...averaged out to up 74%. Ordered more potatoes yesterday and they were up 25%.
<> a majority of people said they are okay with this economy<>
Color me skeptical. More likely the rats since 2020 refined the art of the steal.
Feels good huh?
Not good: GREAT!
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