Investors are right to be cautious, according to Peter Berezin, chief global strategist at BCA Research. He’s just raised the probability of a U.S. recession in the next 12 months to 75% in response to Donald Trump’s victory at the polls.
Investors may increasingly buy bonds as a safe haven - because of how bad things are getting and how much economic uncertainty there is right now, investors may sell other assets and buy US treasuries - and that will LIFT the price of treasuries and push down the yields of treasuries.
Reasoning behind billionaire shorting the 30 yr treasury Bond market
The U.S. went off the gold standard in the early 70s due to military spending and at the same time the discretionary budget was changed to include the social security trust to hide the military spending. When you include military spending on debt spending and military spending on VA healthcare then the military budget is 50% of discretionary spending.
10% of credit cards have had no minimum payment in the past 60 days. 82% of people have a credit card and 50% of them owe $10,000 minimum as financial unearned income to the credit card elite. Real wages have not increased in 45 years next to inflation. Meanwhile the Elite have tranferred $50 trillion from the working class to the 1% just as Rand Institute reported.
Voters voted to burn the U.S. down. 9% of credit cards are not making their minimum payment after 60 days. 50% of credit cards do not get paid off but just make a monthly minimum - thereby forcing an extra $10,000 in finance interest payments (unearned income for the elite) accrued. 82% of people in the U.S. have a credit card. That means the U.S. is a slave-wage nation now and voted to burn the place down.
https://www.cnbc.com/2024/08/06/new-york-fed-credit-card-debt-hits-record-1point14-trillion.html
Collectively, Americans owe a record $1.14 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.
Although widespread, the increase is more notable in the poorest ZIP codes, where delinquency grew from 11% in the second quarter of 2021 to 17.4% in the first quarter of 2024—58% in relative terms.
This variable grew in every region we examined for the last three to seven quarters. And for each region, the percentage of debt in delinquency has increased at least 32.2% in relative terms since its last trough. The richest 10% of ZIP codes have experienced the greatest proportional increase; their delinquency rate climbed from 4.8% in the second quarter of 2022 to 7.4% in the first quarter of 2024, or 54% in relative terms. For the poorest 10% of ZIP codes, the delinquency rate increased from 14.9% in the third quarter of 2022 to 21% in the first quarter of 2024, or 41% in relative terms.
Credit card balances rose by $27 billion in the second quarter of 2024, a 5.8% jump from a year ago.
Credit card delinquency rates were also higher — especially among younger adults, or borrowers between the ages of 18 to 29 and 30 to 39, who were likely harder hit by the Covid-19 pandemic, the New York Fed found.
Over the last year, roughly 9.1% of credit card balances transitioned into delinquency, the New York Fed found. "Past due" on a credit card means that the minimum payment due on the card was not paid by the due date. We define credit card delinquency as an account that is 60 days or more past due, excluding severe derogatory debt (more than 120 days past due)...
https://www.cnbc.com/2023/01/10/americans-lean-heavily-on-credit-cards-amid-inflation.html
46% of cardholders now carry debt from month to month
Now, 46% of credit cardholders carry debt from month to month, up from 39% last year, according to a new report by Bankrate.
As the personal savings rate sank near an all-time low, credit card balances jumped 15% year over year, according to the latest quarterly report from the Federal Reserve Bank of New York, notching the largest increase in more than 20 years.
Credit card rates, already high in recent years, spiked when the Federal Reserve began raising interest rates to tame inflation.
Now studies show fewer Americans are paying off their credit cards off in full.
Lower-income households, who had to stretch to cover price increases, have been hit especially hard after a string of 11 rate hikes lifted the average credit card rate to more than 20% — near an all-time high.
With that annual percentage rate of 20%, if you made minimum payments toward the average credit card balance of $6,218, it would take you 18 years to pay off the debt and cost you more than $9,300 in interest in that time period, Rossman calculated.
No minimum was paid for 60 days on 9% of credit cards in August 2024. Dang. (46%) 50% of credit card holders carry a month to month payment minimum plan which means $10,000 in extra finance payments accrued. So we live in a nation of slave-wagers.
In 2023, 82% of US adults owned a credit card
Burn it all down!! hahahah.
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