Even though the signs of problems are visible in the economy, consumer spending surged in the month of August. Americans upped their spending by 0.4% by buying cars and making purchases online.
According to Breitbart News, this uptick was more than economists had expected. Economists had forecast a more modest 0.2 percent gain. The previous month’s gain, boosted in part by Amazon’s Prime Day sales, was revised up to 0.8 percent from 0.7 percent.
Online sales, were expected to drop off steeply in a kind of post-Prime Day hangover, were surprisingly strong, rising 1.6 percent. Sales at home and garden centers were also robust. Auto sales jumped 1.8 percent. These can be volatile month-to-month. But purchases of big-ticket items like cars are generally a sign of consumer confidence and typically fall early in a slumping economy.
But it looks like this surge in consumerism was paid for with debt. Americans piled up $35.6 billion in credit card debt last quarter, an all-time record, according to the Kiowa County Press. “Americans began 2019 owing more than $1 trillion in credit card debt,” Alina Comoreanu, Wallethub senior researcher, said. “Although the forecast initially appeared brighter, thanks to consumers repaying $38.2 billion in credit card debt during Q1 2019, poor second-quarter results nearly erased that effort.”
“Credit card debt statistics speak to the financial health of American households,” Comoreanu added. “They can also foreshadow over-borrowing bubbles, changes to lending standards, and other trends with the potential to impact our wallets.”
The average household currently owes $8,602 in credit card debt, according to an analysis by Wallethub. Based on these numbers, we can deduce that much of the increase in spending is not coming from an increase in income, rather a desire to buy now and pay later. “Our overleveraging problem has been trending in the wrong direction for some time now, and the latest data indicate we’re truly entering dangerous territory,” WalletHub CEO Odysseas Papadimitriou said in response to the findings.
Credit card debt is “un-secured” debt. I pay mine off every month.
The bank doesn’t make much money off me. Many do not pay off every month. What happens if everybody decides to, or could not pay? Like a SHTF event. Who loses? It is all Fiat FRNs.
I know that is shear fantasy, but what would be the ramifications?
I’m limiting this “what if” to credit card debt.
Collateralized debt is different.
I’d certainly watch any investments in banks that issue credit cards.
Hmmmm, maybe I should get a few credit cards then max them out buying metals and other good stuff then shove it up their arse like I did before lol…… The sovereign citizen thing does have some advantages!
Rellik, I’ve never made enough money to even worry about credit so there’s no debt for me to worry about. I’ve spent all these years avoiding credit and paying cash for most of my prep purchases. I’ve made numerous trips to the BOL over the past 3 years moving everything here then finally made my permanent move in July. My strategy has really paid huge dividends for me. Not missing the stinkin’ democrat-run hellhole I left and not going back for any reason. All of the morons drowning in debt are in for the surprise of their lives. But me, I’m sitting pretty and have the popcorn ready for whenever the show begins.
Trump, you are running out of time.
40 million illegals and their anchor bafturds remain in the USA.
Trump will be known as the one term sit-on-my-hands accident.
Really? Which pile of crap democrat do you think can beat him? He’ll win again despite the constant bashing of the media and morons who just want more handouts.
Not being the brightest bulb in the pack all I can do is read and try to learn. USA owes (including un-funded liabilities) 250 trillion. If a dumbbell like me knows this, they (the folks who really run things) also know this. How does the merry go round continue. What do I not know that they know?!?…
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Really looks like shadow ban.
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