“‘For The First Time In Modern History’
US Government Debt Will Surpass Household Debt”
by Tyler Durden
“Last week,
rating agency DBRS raised a red flag when it calculated that in the past decade average US wages have risen by only 5.7%, while consumer debt over the same period rose 60% more, or 9.3%. However, while the US household’s reliance on debt to fill in the income gaps is hardly news, on Monday JPMorgan found another, even more concerning debt inflection point: household debt, fast as it may be rising, is about to be eclipsed for the first time ever by the even faster rising federal government debt.
As JPM writes in its
weekly market recap, prior to the Financial Crisis, household debt relative to federal government debt hit a high of 3 to 1 times. Since then, a combination of bank credit tightness and consumer prudence has sharply limited the growth in household debt, with liabilities increasing just 4% since 3Q 2008. However, JPM adds, “the same cannot be said of the federal government, with liabilities increasing almost 150% over the same period and nearly reaching household debt levels for the first time in modern history.”
JPM continues: ”On top of that, the CBO projects that, even excluding the impact of tax cuts, government debt levels will continue to march upward over the course of the next 10 years, ultimately hitting $25.5 trillion by the end of 2027. While this does not point to an impending crisis, it does mean that, should another downturn occur, the government would be far less able to come to the rescue as it did in 2008. It also means that while tax cuts may take place today, it becomes all the more probable that they will become tax increases or spending cuts in the future, with tax increases likely to hit higher income households and elderly households being more vulnerable to spending cuts.”
Finally, “this means that while consumers have taken steps on their own account to ensure a smaller debt burden, older and wealthier households should be particularly wary of the potential impact of rising government debt on their finances” especially once the next government – far more likely to be of the “wealth redistribution persuasion” – decides to do just that…”
◆
How the 1% view us…
Makes perfect sense, actually. In our drunken debauchery of booze, women and movies
the deplorable 99% have maxed out their credit, simply cannot borrow any more.
The government, on the contrary, can borrow all it wants for fun things like wars…
“Basic fairness”, right GrASSley?
Source:
http://coyoteprime-runningcauseicantfly.blogspot.com/2017/12/for-first-time-in-modern-history-us.html
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
There is no Debt problem when a republican is president, especially one who is known for his ‘wise’ business practices. with that skill set the Debt will be reduces, especially with his new tax plan that reduces the federal budget income, while increasing costs of the military and his wall.
Now people can blame obama for creating an expensive healthcare system, by this prsident seem to fail at reforming it, every time….
I am sure his Economic plans will be for the better…… because he is a republican ofcourse