I remember watching in disbelief as Americans loaded up on massive amounts of debt post 2003 to speculate in real estate. We know how that ended, but even those highs appear to be nothing but a tiny speed bump on the way to the promise land of milk and honey.

U.S. Consumers On An Unprecedented Debt Binge As Credit Card Debt Soars To An All-Time Record High

Americans are on an absolutely spectacular debt binge.  Does this mean that the economy is getting better, or does this mean that U.S. consumers are totally tapped out and are relying on borrowed money to make it from month to month?  On Monday, the Federal Reserve announced that total consumer credit in the United States increased by a whopping 24.6 billion dollars in May, which was far greater than the 12.4 billion dollar gain that economists were anticipating.  Total U.S. consumer credit has now hit a grand total of 3.9 trillion dollars, but it is the “revolving credit” numbers that are getting the most attention.  Revolving credit alone shot up by 9.8 billion dollars in May, and that was one of the largest monthly increases ever recorded.  At this point, total “revolving credit” has reached a brand new all-time record high of 1.39 trillion dollars, and credit card debt accounts for nearly all of that figure.

Consumer Credit +7.5%, Revolving Credit +11.5%, Non-Revolving +6.25% YoY

​What can possibly go wrong here?

Indeed. 

All of the above can be interpreted in one of two ways. Either Americans have been so brainwashed by MAGA, seeing nothing but prosperity ahead, that the “hell with it” mentality takes over and people go on spending binges. Or, perhaps, Americans are so tapped out that they have to go into debt in order to maintain or sustain their existing lifestyles.

And while the latter is most likely explanation, it doesn’t really matter what the actual cause is. The truth of the matter is, this is a massive and unsustainable debt bubble. Not only in consumer credit, but in ALL credit. And not only in credit, but in EVERYTHING BUBBLE.

The above will blow up. It is simply unsustainable and not even MAGA can save us from the day of reckoning. Having said that, if you would like to find out exactly when this day arrives, in both price and time, please Click Here.