And now a new report on Jan. 8 shows that the recent surge in economic growth has been built upon the same foundations as during the latter stages of Obama's tenure... consumers using increasing amounts of debt to survive.
It's official: the reason behind the recent rebound in the economy can be explained with two words: "charge it."
Readers may recall that one month ago, we reported that with Republicans in Washington on the verge of passing their first major piece of legislation in the form of comprehensive tax cuts that will allow Americans across the income spectrum to keep a little more of their hard earned cash in 2018, it appeared that U.S. consumers already "pre-spent" their savings using their credit cards.
And now we have confirmation that this is precisely what happened, because in the month of November, between revolving, or credit card, and non-revolving debt, largely student and auto loans, according to the latest Fed data, total consumer debt rose by $28 billion, or the most since November 2001, to $3.827 trillion, an annualized increase of 8.8%, or roughly 4 times faster than the pace of overall GDP growth. - Zerohedge
So even with the expected windfall that most Americans will receive from the tax cut bill passed a couple of weeks ago, it will not keep up with the skyrocketing price inflation that appears to now be unleashed, and thus the 'growing economy' is only built on a house of credit cards that is reaching peak level.