Yellen calls rising credit card debt the sign of a strong consumer. No, Janet, it means tapped out consumers are sinking further into debt they can’t possibly repay.

The US has $17.1 trillion in household debt, $12.0 trillion in mortgages, $1.6 trillion in auto loans, $1.6 trillion in student loans, and $1.0 trillion in credit card debt.

pic.twitter.com/xU9iQN2f5f

— Ozymandias 🇨🇦 (@BruceCl36014364) August 8, 2023

US Total Household Debt Hits an All-Time High of $17 Trillion; Credit Card Debt Also Sets New Record at $1 Trillion

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— Invariant Perspective (@InvariantPersp1) August 8, 2023

In the US, interest rates on household items are skyrocketing.

In just 1 year, the average interest rate on credit card debt has gone from 14% to 21%+.

New car loan rates went from 4% to 8% while used car loan rates are at 12%+.

Mortgage rates are at a fresh high of 7.2%, up… pic.twitter.com/ndbJyphh7x

— The Kobeissi Letter (@KobeissiLetter) August 8, 2023

The US government has spent an alarming $6.7 trillion over the last 12 months.

This is up 14% since last year and just shy of the $7.6 trillion record during 2020.

We are now spending just $900 billion less than a period when $4 trillion was handed out.

The worst part?

Over… pic.twitter.com/cuYZHhofxO

— The Kobeissi Letter (@KobeissiLetter) August 7, 2023

Moody’s cuts credit ratings of ten US banks and warns six more could face a similar fate – but firm insists ‘US banking system is NOT broken’ (Remain calm – all is well!)

h/t Simian_Stacker