re: Credit Card debt in US is now One Trillion Dollars

quote:

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I'm going by the information in the OP.

OP claims household debt went up by 2.4% in Q4 of 2022. Q4 2022 CPE price index (which includes food and energy) was +3.2%.

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Thanks for the clarification on your source.

Take some time to dig into the numbers yourself, it's pretty eye-opening when you use the backdrop of this is all happening as we start going into a recessionary period (there's an argument which could be made about already being in a recession, but that's a tangent for its own thread). Once you see it, you'll realize that the longer this goes on, the harder a landing we're going to have (a soft landing is pretty much impossible now).

And then the administration will likely react by increasing welfare benefits (which will keep inflation stickier than otherwise).

To my thinking, it takes about a year for rate hikes to really begin being felt throughout the economy. The Fed didn't start raising rates until March 2022 (.25 increase) and didn't start getting aggressive about them until May (.5) or June (the first of 4 successive .75 increases), depending on your definition of "aggressive". If true, we're going to see the beginning of this "landing" as those successive hikes really hit home over the summer and into the Fall.