Government Funds 70+ Cents of Every Dollar of Consumer Credit [Archive] - Glock Talk

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GAFinch
12-09-2012, 13:13
A month after consumer credit rose by $12 billion (revised) driven by car and student loans, even as revolving credit declined, total consumer credit in October once again rose in both revolving and non-revolving categories, up by $14.2 billion, consisting of $3.4 billion in revolving and $10.8 billion in non-revolving. This number will probably get revised lower next week. The number which will not be revised lower is the composition of sources of consumer credit, where the Government sourced 70% of all new loans (on a NSA) basis: $7 bilion of a total of $10.3 billion. For some perspective, the US government has funded $114 billion of the total $156 billion in total consumer debt in the past year.

http://www.zerohedge.com/news/2012-12-07/october-consumer-credit-rises-142-billion-government-funds-70-cents-every-dollar

Yearly total is 73%.

Cavalry Doc
12-09-2012, 16:05
Now, before I say this, I am actively working on eliminating all debt while buying tangible goods that I will need in the future in any situation.


But I have to wonder....... would I be better off getting about $100,000 worth of credit cards and maxing them out, then just wait for hyperinflation to whittle down the debt for me.........

If I wasn't an honest person, I'd seriously consider that option.

Atlas
12-09-2012, 16:52
Now, before I say this, I am actively working on eliminating all debt while buying tangible goods that I will need in the future in any situation.


But I have to wonder....... would I be better off getting about $100,000 worth of credit cards and maxing them out, then just wait for hyperinflation to whittle down the debt for me.........

If I wasn't an honest person, I'd seriously consider that option.

I wouldn't consider that to be dishonest at all.
Banks and consumer credit companies take that risk willingly.
They understand the money markets and inflation better than most. If they don't want the risk that the currency you will use to pay your debt will be devalued in the future then they shouldn't be in that business. They contract with you to loan you money in a particular currency (dollars for you and I) and to be paid back in that same currency.

It would be quite a different thing if you accrued debt with the intent to default in bankruptcy. That would be dishonest without question.

The trick of course is same as anything else in the marketplace... timing.