Average consumer now carries $6,329 in credit card debt. 'People are stretched,' expert says

[Paulos23]

Credit Card debt has nothing to do with any party but has to do with the "buy it now, pay later" attitude that has been pushed on us by marketing.

Not to mention that many people don't have any savings for emergencies and those tend to go on the credit card and never get paid down

 

[HARK!]

 

[HARK!]

Gold Price Today | Price of Gold Per Ounce | 24 Hour Spot Chart | KITCO

Live Gold Charts and Gold Spot Price from International Gold Markets, Prices from New York, London, Hong Kong and Sydney provided by Kitco.

www.kitco.com

War has way of devaluing fiat currencies; and fiat currencies have a life cycle. The life cycle of the US dollar is nearing its' end.

 

[Hans Blaster]

War has way of devaluing fiat currencies; and fiat currencies have a life cycle. The life cycle of the US dollar is nearing its' end.

First, shiny metals are a silly thing to rack up CC debt for (you know, the subject).

Second, what war?

 

[HARK!]

First, shiny metals are a silly thing to rack up CC debt for (you know, the subject).

If that's the case; why are central bankers, all over the world, creating more funny money to buy it up as fast as they can lay their hands on it?

It's a hedge against inflation of fiat currency. Inflation is what is causing the ramp in CC debt. People are buying their groceries on credit.

Second, what war?

All of them. The current one with Russia is nothing to sneeze at.

 

[Hans Blaster]

If that's the case; why are central bankers, all over the world, creating more funny money to buy it up as fast as they can lay their hands on it?

Sure.

It's a hedge against inflation of fiat currency. Inflation is what is causing the ramp in CC debt. People are buying their groceries on credit.

I thought that was from job losses that people by groceries on credit.

All of them. The current one with Russia is nothing to sneeze at.

And Russia's economy isn't doing well, but that has nothing to do with our economy.

 

[HARK!]

Sure.

Are you conceding on that point; or is that your answer to my question?

I thought that was from job losses that people by groceries on credit.

Job losses are part of the picture. When people can't afford to buy products; employers need to downsize to stay in business.

Another part of the picture is that as costs rise due to inflation; wage increases are not keeping in step; so those who manage to keep their jobs, are feeling the squeeze too.

And Russia's economy isn't doing well, but that has nothing to do with our economy.

World economies are all connected.

Europe depends heavily on Russian energy. That energy is being cut off. That means that there is less energy on the market. Europe's people are struggling to heat their homes. Their economy is in the dumper.

As this world runs on energy, it boggles my mind that the price of oil is being suppressed in the face of short supply and rising inflation.

Wars burn a lot of energy too. I don't believe that it's coincidence that Iran, and Venezuela, have recently become sharp points of interest.

I believe that WWIII is already started; and I suspect that this ruse will soon come to an end.

However, I still pray for peace.

 

[Hans Blaster]

Are you conceding on that point; or is that your answer to my question?

I thought the sardonic 500 eyerolls were implied but...

Job losses are part of the picture. When people can't afford to buy products; employers need to downsize to stay in business.

Another part of the picture is that as costs rise due to inflation; wage increases are not keeping in step; so those who manage to keep their jobs, are feeling the squeeze too.

I forgot the tarifs.

World economies are all connected.

Europe depends heavily on Russian energy. That energy is being cut off. That means that there is less energy on the market. Europe's people are struggling to heat their homes. Their economy is in the dumper.

Europe is mostly done with Russian fossil fuels.

As this world runs on energy, it boggles my mind that the price of oil is being suppressed in the face of short supply and rising inflation.

Suppressed how?

Wars burn a lot of energy too. I don't believe that it's coincidence that Iran, and Venezuela, have recently become sharp points of interest.

From whom?

I believe that WWIII is already started; and I suspect that this ruse will soon come to an end.

Good grief.

However, I still pray for peace.

Could you do less?

 

[Tuur]

If that's the case; why are central bankers, all over the world, creating more funny money to buy it up as fast as they can lay their hands on it?

Because stupid is as stupid does?

Don't go into dept over speculative deals. Just don't. The bottom could drop out and then you're left owing more than what you bought is worth. That's how a lot of banks got in trouble when the real estate bubble popped.

 

[HARK!]

I thought the sardonic 500 eyerolls were implied but...

Central bank purchases have been the main driver of the sharp rise in gold prices, Struyven said. “Central banks are now buying roughly 80 tonnes per month. That is about five times faster than before 2022. Several important Asian and emerging market central banks are still underweight gold and have significant room to increase their reserves,” he explained. He expects central banks to continue buying at a rapid pace for the next three years, pushing gold prices even higher.

Growing expectations of additional US Federal Reserve rate cuts later this year have further supported the safe-haven demand for gold. Prices have also been buoyed by concerns over a possible US government shutdown.

Gold could hit $4,300 per ounce by end of 2026 driven by central bank purchases: Goldman Sachs - CNBC TV18

Central banks are driving gold prices higher, with purchases hitting record levels and supporting a rally that could take the metal above $4,000 per ounce by next year. Analysts say silver could also see gains if investors shift from gold, as geopolitical uncertainty and potential Fed rate cuts...

www.cnbctv18.com

 

[HARK!]

Europe is mostly done with Russian fossil fuels.

Exactly

Suppressed how?

Like I said, it boggles the mind. Energy drives the world. As prices for products continue to climb; the cost of the energy behind creating and delivering those products doesn't correlate.

You do understand that the markets are manipulated?

 

[HARK!]

Because stupid is as stupid does?

As of July 1, 2025, gold will officially be classified as a Tier 1, high-quality liquid asset (HQLA) under the Basel III banking regulations. That means U.S. banks can count physical gold, at 100% of its market value, toward their core capital reserves. No longer will it be marked down by 50% as a “Tier 3” asset, as it was under the old rules.

Gold Goes Full Reserve Asset As Basel III Elevates It To Tier 1 Status

As of July 1, 2025, gold will officially be classified as a Tier 1, high-quality liquid asset (HQLA) under the Basel III banking regulations.

www.forbes.com

That doesn't explain why the smart money is, not only buying, but taking physical delivery of gold.

...But who knows? Maybe those guys who print the fiat currency, don't know as much about money as we do.

"Gold is money. Everything else is credit." ~J. P. Morgan

J.P. Morgan's tool shed

 

[ThatRobGuy]

I wonder how much of this is residuals from people falling into the variable interest HELOC trap.

According to Equifax aggregated data, there were millions of HELOC originations between 2020 and the second half of 2022. (when the prime rate was lower)

When the prime rate was raised over the subsequent 2 years (from 3.25% to 8.5%), that probably threw some people through a loop.


For those unfamiliar with the acronym, HELOC = Home Equity line of credit. Those are directly anchored to the prime rate. Typically with a model such as "Prime + 0.5%" (sometimes lending institutions will run promotions like "rate locked at 2% for 12 months" or things of that nature)

So for example:

If a person opened an equity line of credit and borrowed $50k against their home with Prime + 0.5% terms...

In 2020 Their minimum payment would've been in the ballpark of $150.
In 2024 Their minimum payment would've been approaching near $450.

That's a large enough difference that for your average person on a budget, they're going to start having to reach for credit cards for certain things.

 

[HARK!]

I wonder how much of this is residuals from people falling into the variable interest HELOC trap.

According to Equifax aggregated data, there were millions of HELOC originations between 2020 and the second half of 2022. (when the prime rate was lower)

When the prime rate was raised over the subsequent 2 years (from 3.25% to 8.5%), that probably threw some people through a loop.


For those unfamiliar with the acronym, HELOC = Home Equity line of credit. Those are directly anchored to the prime rate. Typically with a model such as "Prime + 0.5%" (sometimes lending institutions will run promotions like "rate locked at 2% for 12 months" or things of that nature)

So for example:

If a person opened an equity line of credit and borrowed $50k against their home with Prime + 0.5% terms...

In 2020 Their minimum payment would've been in the ballpark of $150.
In 2024 Their minimum payment would've been approaching near $450.

That's a large enough difference that for your average person on a budget, they're going to start having to reach for credit cards for certain things.

To add to that, I believe that the housing market is in a enormous bubble, and is due for a huge crash.

When that happens, I expect the banks to get bailed out again by the American taxpayer, further accelerating the devaluation of the dollar.

Think about that for a moment. if metals are holding their value, thereby appreciating in value in comparison to the dollar; holding metals hedge against inflation.

I believe that gold and silver are undervalued, even in this bull market, and will continue to appreciate compared to the dollar.

The housing market is one factor that drives inflation through fractional reserve banking.

I believe that the housing market is way overvalued.

If one is accumulating precious metals that might continue to appreciate in value; one could be positioned very well to buy real property should that bubble burst, all the time hedging against the devaluation of the dollar.

 

[Larniavc]

Not to mention that many people don't have any savings for emergencies and those tend to go on the credit card and never get paid down

What I don’t understand is why everyone has not made the right financial decisions in life to be as financially secure as I am now as an avuncular gentleman in is early 50s.

It’s a mystery.

 

[Paulos23]

What I don’t understand is why everyone has not made the right financial decisions in life to be as financially secure as I am now as an avuncular gentleman in is early 50s.

It’s a mystery.

You are assuming I have not made any wrong financial decisions. I have. I had a large credit card debt and no house at 40. If I didn't have my job, I would not have made it back from that.

Still, far comment. I managed to have support that most do not get.