Credit card debt hits new record, raising warning sign

What economic downturn? I haven't seen it yet. However, I will blame him when it happens, unless it is the fault of Congress or businesses. The government can't create jobs. They can only influence job creation. The president is only a part of any new law created. Congress uses legal extortion, just as Trump did right before Christmas. None of that should be legal. Political parties are irrelevant.

 

the middle class tax cuts will postpone it some, but the tax cuts for the corps will eventually catch up with us

 

Did anyone consider that the economy collapsing, though it would be horrific and many would die, might be the only way to actually make a difference? I hate posting this. I just don't see another way. We left the gold standard and went down hill from there, printing and borrowing money willy-nilly. It's too late. It's like Hawaii. Just put your head between your legs and kiss your butt goodbye, cause there is nothing any of us peons can do, but hope that something goes wrong with the detonator or the guidance system or a defense missile is lucky enough to knock it down. Otherwise, have a change of shorts ready and might as well kiss you wife and kids.

 

Ahhh should read
Democrats increase taxes, hugely increase spending and borrowing and increase deficits
Republicans cut taxes, restrain spending and decrease deficits and even produce surpluses

 

democrats like lowering taxes on the middle class on down, republicans like tax cuts for the rich

democrats like stimulus for the people, republicans like stimulus for the rich

 

I agree, eventually, too much debt will catch up to us -- however, it is private not public debt that is the problem. As I said above, eventually, creditors run out of borrowers. We are already somewhat in that situation, which is why interest rates are low: Too much capital seeking for a safe return.

The Mesopotamians already knew this 1000s of years ago. That's why they forgave all debt in cycles of every seven years (I believe). That assured that the debt taking and, thus, economic expansion could start anew.

In our system, debt forgiveness is called default or bankruptcy. However, the new bankruptcy laws under GWB made declaring personal bankruptcy much harder, thus protecting creditors over borrowers. The natural consequence is that debt tends to accumulate more, eventually producing too much economic headwind.

Of course, these bankruptcy laws were just one way to protect capital, another one is the elimination of the estate tax, which will eventually come. Little do the capital holders realize that they dig their own grave, by killing the goose that lays their golden eggs, i.e. the borrower.

 

When did Republicans ever cut spending? And where are those surpluses you speak of? We need examples.

In any case, this thread is about private debt, not about public debt the GOP conveniently forgot about when the cut taxes.

 

the one you predicted in the previous post

 

During Reagan’s years in office, spending increased 160%.

During Bush II time in office, spending increased 101%.

During Clinton’s time in office, spending increased 39%.

During Obama’s terms, spending increased 79%.

Source: historical records, US Treasury.

BOTH parties spend.

Numbers reflect increase in Federal deficit.

 

Truth? Both Democrats and Republicans behave as though debt is not a problem, in any sense. The 800-pound gorilla in this 'room' is the Federal Reserve System combine. As we saw during the 'Great Recession', if there's a problem with liquidity, interest rates, money supply, or anything else that can possibly threaten those that are "too big to fail", the Fed simply barges in, overturns all the axioms of a free-market economy, floods the world with imaginary money, buys up trillions of dollars worth of toxic "assets", and crushes interest rates (even though it's a cash-starved world where real money is concerned).

Back down on the personal debt level, it's not so hard to figure out. A great many people are, unfortunately, very stupid! Some little flurry of 'good' news makes the headlines and suddenly they decide that they 'feel wealthy'. So, they rush out and buy all the stuff on credit that they've wanted but could not afford (and still can't) because they just assume that something like a "trickle-down" tax cut effect will surely "trickle-down" to them, too. It may... and then again... it may NOT.

. "So, we'll use the tax savings to buy robots instead of giving raises, right? . "

 

Lust for the most power within one's lifetime?

 

I disagree. The Fed is often vilified, but in reality is unable to set interest rates too far off market rates for extended periods of time (say, maybe a few months). The reason why interest rates were low is because too much capital was looking for safe return (i.e. safe borrowers), but the demand for capital was low. That's a supply and demand issue, not a Fed issue.

 

less of a prediction I think, than one possible solution which is all I can see with my pea sized brain.

 

Nice catch. Unless it's an upward trend in May, not surprising. November 25th is the pinnacle of holiday shopping credit spending. And the population continues to grow, and as everyone has noticed, the economy has improved.

 

Democrats say 1-2% growth new norm.

Democrats say jobs are never coming back.

Democrats say America has had it good for to long.

Democrats say trump has no magic wand to fix the economy.

 

Too early to tell. If the economy is strong in three years - I'll give Trump and the Republicans credit ... but the Bond Market is showing signs of a pending recession and inflation is starting to kick in.

Personally, I'd rather have 2% growth for ever rather than these boom and bust cycles every 8 to ten years.

 

democrats say corporate greed will not be stopped by Trump's huge corporate tax cuts

the middle class tax cuts will give us a boost, but should of been much bigger and permanent

 

If we want to stop the boom-and-bust cycle we have to not elect people that want to punish the boom. Soon people will live long enough to look back at Democrats and know their mistake. The young will become fewer and fewer of the population as the number of experienced people grows and grows.

It kind of looks like the old global warming graphs from back in the day.

 

That's why they were so appalled by all the bonuses given to employees AFTER the tax cut passed. OUCH!

 

OK - got to give you a perfect "10" for gymnastics on that one ... has nothing to do with anything, but it was a wonderful contortion. Bravo.

 

The problem is with insurance. Capitalism doesn't work if people can avoid the 'risk'. Banks should bear the burden of their bad choices instead if bundling risk and selling it. It should also be illegal to sell loans without the agreement of both of the loaner and loanee.

 

Of course - Walmart paid for their bonuses by cutting all the jobs at their Sam's Club stores ... but that wouldn't fit your narrative, would it?

 

Walmart was only one of many businesses doing the same. As for Sam's Club stores, I've always thought that was a niche business targeting business bulk purchases. Rank and file poor do not pay subscription member fees, it defies logic. They screwed up and overbuilt them, period. As for the Walmarts ,99% of them are cooking along.

 

That is not a good sign. But hey our do called president just put the tax cut on a China Express card.

 

I think that you will see a shack out in the BJ ( aka Monika Lewinsky Clubs) and Cisco. I do not know of any other massive country wide club stores but there may be.