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News Link • Economy - Economics USA

Middle Class Death Spiral: Consumers Have Never Been In More Debt, And Bankruptcies Are Surging

• by Michael Snyd

The cost of living has risen much faster than wages have, and as a result hard working families all over America are being stretched financially like never before.  Even though most of us are working, 59 percent of all Americans are currently living paycheck to paycheck, and almost 50 million Americans are living in poverty.  In a desperate attempt to continue their middle class lifestyles, many Americans have been piling up mountains of debt, and it has gotten to the point where we have a major crisis on our hands.

According to the New York Post, the total amount of debt that U.S. households have accumulated is about to cross the 14 trillion dollar mark for the first time ever…

Meanwhile, record American household debt, near $14 trillion including mortgages and student loans, is some $1 trillion higher than during the Great Recession of 2008. Credit card debt of $1 trillion also exceeds the 2008 peak.

1 Comments in Response to

Comment by Ed Price
Entered on:

Except for one thing. You sit across from the loan officer. Your credit is good, and he slides the promissory note across his desk for you to sign. Does the PN have value before you sign it? No! Does it have value after you sign it? Yes! How much value? The same amount as the loan. You sign it and slide it back across the desk. The loan officer accepts it, and moments later hands you the amount of the loan in the form of a check or cash. --- Translation. You create new money when you sign the PN. You loan it to the loan officer for a moment, or pay off the loan in advance with it. Then you get your created money back from the loan officer. --- But you don't understand what just happened. So you spend the next few years paying off the loan a second time, plus interest. There is no debt. Lending institutions are taking up ownership of the world, and you are helping them do it.

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