The Great Insolvent: US Credit Card Defaults Spike, Search Interest for Debt Relief Hits Record Highs

by

WE HAVE NEVER BEEN THIS BROKE…

Searches for ‘can’t pay credit card’ smash records…

11% of accounts now seriously delinquent…

Savings rate vanishes…

The plunge in consumer confidence and the record spike in credit card distress signals the final death of the post pandemic recovery. We are watching a systematic liquidation of the American middle class where families are maxing out their plastic just to cover the 28.4% increase in gasoline and the rising cost of groceries. This financial crisis is unique because it is happening while the Federal Reserve is still pretending that 2% inflation is within reach and refusing to acknowledge that the cost of living has outpaced wage growth for 36 consecutive months. When people start frantically searching the internet for how to default on their debt it means the social contract has been broken and the consumer engine that drives 70% of our economy is about to seize up entirely. We are entering a period of forced austerity where millions of Americans will be excluded from the credit markets just as the government is asking them to pay for a massive naval expansion in the Middle East. The numbers don’t lie and they show a population that is tapped out, maxed out, and completely ignored by a political class that is more interested in the 51st state than the 50 states they already have.