1LoverofGod
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The global debt clock is spinning, reaching a record-high of $307 trillion this week. What does this mean?
The amount of debt grew by around eight to ten trillion in just the first quarter of 2023 alone. It was recently reported that “The majority of low-income nations are on the cusp of a debt crisis, sparking fears of global contagion.”
The global debt virus has infected the international economic system, and the world is teetering on the edge of bankruptcy, especially in many of these low-income nations. US debt just surpassed $33 trillion this week. Last month, Credit card debt, for the first time in American history, eclipsed $1 trillion.
The US national debt is projected to exceed 100% of gross domestic product in the next two years. In around six years, the national debt is said to exceed its all-time high of 106% of the gross domestic product, which occurred in 1946, the year immediately following World War II. We know why we had so much debt then, but now it’s simply a result of runaway spending that politicians are not able to curtail.
What’s happening now is the convergence of rising debt and rising interest rates, which is a deadly cocktail. 60% of American families live paycheck to paycheck. Think about that—any kind of financial crisis can take six out of ten families under.
Credit card debt in the US has been rising at one of the fastest rates in history as more Americans are leaning on their credit in the face of rising prices. We collectively own, as I mentioned earlier, over a trillion dollars. In January alone, credit card debt jumped more than 11%, and with interest rates rising, getting ahead of debt is getting harder and harder.
Last year, the average credit card user was carrying a balance of over $5,500, up 13% from the year before in 2021. Even among the 18% of Americans making over $100,000 A year, 37% don’t pay their credit card bill in full every month. The share of credit card users in the United States who carry a balance has increased to 46% from just 39% a year ago.
This is threatening our nation’s future. Financial ruin has catastrophic consequences.
More:
The amount of debt grew by around eight to ten trillion in just the first quarter of 2023 alone. It was recently reported that “The majority of low-income nations are on the cusp of a debt crisis, sparking fears of global contagion.”
The global debt virus has infected the international economic system, and the world is teetering on the edge of bankruptcy, especially in many of these low-income nations. US debt just surpassed $33 trillion this week. Last month, Credit card debt, for the first time in American history, eclipsed $1 trillion.
The US national debt is projected to exceed 100% of gross domestic product in the next two years. In around six years, the national debt is said to exceed its all-time high of 106% of the gross domestic product, which occurred in 1946, the year immediately following World War II. We know why we had so much debt then, but now it’s simply a result of runaway spending that politicians are not able to curtail.
What’s happening now is the convergence of rising debt and rising interest rates, which is a deadly cocktail. 60% of American families live paycheck to paycheck. Think about that—any kind of financial crisis can take six out of ten families under.
Credit card debt in the US has been rising at one of the fastest rates in history as more Americans are leaning on their credit in the face of rising prices. We collectively own, as I mentioned earlier, over a trillion dollars. In January alone, credit card debt jumped more than 11%, and with interest rates rising, getting ahead of debt is getting harder and harder.
Last year, the average credit card user was carrying a balance of over $5,500, up 13% from the year before in 2021. Even among the 18% of Americans making over $100,000 A year, 37% don’t pay their credit card bill in full every month. The share of credit card users in the United States who carry a balance has increased to 46% from just 39% a year ago.
This is threatening our nation’s future. Financial ruin has catastrophic consequences.
More:
