By Lowell Ponte
The good news is that in 2017 the average American has been given a FICO Score of 700, the highest average level of creditworthiness ever.
The bad news, paradoxically, is that roughly half of American families now live paycheck to paycheck. According to research by the Federal Reserve, 47 percent of us do not have enough money set aside to pay for a $400 unexpected repair or hospital emergency room visit, and 27 percent of us have no savings at all.
If a crisis happened, 21 percent of those questioned told a Bankrate.com survey that they would pay using a credit card. This is almost double the number who would turn for financial help to relatives. But, ironically, 24 percent of families living paycheck-to-paycheck said that credit card debt was the biggest reason they could not save much.
Between 2003 and 2013, the inflation-adjusted net worth of the typical household plunged by 38 percent, owing largely (but not entirely) to the crisis of 2008-2009 and the huge drop in the prices of homes, which millions had used as appreciating savings and then as their own ATM machines to pay for other things.
Politicians had forced banks to give mortgages to millions the bankers called “Ninjas,” people with “No income, no job, and no assets or savings.” This easy money caused a flood of homebuyer demand and skyrocketing prices.
But when home prices began to fall, many no-money-down Ninjas abandoned their homes rather than pay more than the underwater houses were worth. The bad mortgages on bank balance sheets here and abroad led to taxpayer bailouts of our biggest banks and nearly collapsed the U.S. economy.
In 2017, our economy still suffers from the bursting of the housing bubble and its debasement of the homeowner American Dream. The typical American household, reported CBS News, in inflation-adjusted dollars is “still earning 2.4 percent below what they brought home in 1999.” U.S. household debt during the First Quarter of 2017 reached $12.73 Trillion. “That’s up $50 billion,” reports U.S. News & World Report, “from the previous peak reached in the third quarter of 2008.”
The Federal Government debt of roughly $20 Trillion exceeds America’s entire annual Gross Domestic Product (GDP). The government has stayed solvent because it could borrow endless money at almost zero percent interest, could print an extra trillion dollars each year whose value comes from devaluing our earned dollars, and could simply coerce more money out of us taxpayer serfs.
With 70 percent of America’s GDP coming from consumer spending, the government and Federal Reserve are pressuring those who issue credit to give us more, just as they did with Ninjas and home mortgages. Why not? The government long ago ended our ability to deduct credit card interest from our taxes, so the more we pay the banks, the more flows into the government treasury. This is not just bank interest; it is also indirect taxation or the borrowers.
You may get little or no additional pay, and have no additional savings. But you will get more credit – and will pay hefty interest on it. You will get easier auto loans, for example, thanks to government pressure on lenders, which already adds $1.1 Trillion to American household debt.
Student loans are easy to get, but in 2017 these reached $1.4 Trillion – with many students defaulting because politicians promise in the near future to cancel this debt, and nobody wants to pay off a debt about to disappear without payment. The parents who co-signed these loans, however, are often shafted when their children refuse to make promised payments.
As borrowing and debt increase, we also face another problem. Many analysts study recurring patterns in the economy, society, and nature to foresee what soon could be coming. Ominously, many of these theorists are giving the same dire warning – that between now and the end of year 2020, a convergence of negative patterns and the low points of several cycles will hit us all at once.
This is one of the worst convergences of negative forces in centuries! It could potentially batter the United States socially and economically. As Craig R. Smith explains in a new free “Crisis Timeline,” this can also be a disaster for the unprepared. But for those who are prepared, it could be a huge opportunity.
Globalists are eager to impose a “cashless” society where everything is credit and debt, where values are easily manipulated, and where all financial transactions are monitored and taxed by government. This is why they are squeezing you out of cash and into credit. This is why they do not want you to convert any of your paper dollars into a form of money they cannot control or devalue, such as gold.
And if the globalists get their way, an American economic and social crash is inevitable. Your credit will disappear instantly. What will you do then, without hard money? Neither a plastic card nor a worthless green piece of paper will save you on that discredited day. You can prepare now, or be helpless then.
To schedule a fascinating interview with Lowell Ponte, contact: Sandy Frazier at 516-735-5468 or email email@example.com.
For a free copy of the new “Crisis Timeline,” contact: David Bradshaw at 602-918-3296 or email him at firstname.lastname@example.org