There are two ways to buy Chinese slave labor produced stuff you don’t need at one of our millions of mega-retailers. You can pay cash from your latest payroll direct deposit or you can whip out one of your eight credit cards and do it the American way.
A measure of how delusional and desperate the average American has become is to divide their total consumer debt by their total salary and wages. The chart below tells the true story about the average American. Back in the pre-delusional days, before the banksters and their propaganda media had convinced the willingly ignorant public that debt financed purchases equaled wealth, consumer debt divided by salaries and wages ranged from 24% to 30%.
Around the time that Greenspan made his irrational exuberance speech, the American public went full retard and have never looked back. The 2000 crash brought about a momentary pause at 32%, but Greenspan’s easy money from 2001 through 2006 created a materialistic consumption frenzy and drove the ratio to 40%. Who needed wages when credit cards and GMAC subprime auto loans could allow you to appear wealthy to your neighbors.
The housing and financial system collapse again leveled the percentage at the 40% level. The storyline being sold to the sheep over the last few years is that millions of jobs have been created and consumer austerity has resulted in the average American repairing their balance sheet. If we were really experiencing a jobs recovery, wages would be rising. If consumers were being austere, their consumer debt would be declining. The ratio would be declining.
As anyone with two eyes can see, the ratio is currently at an all-time high of 43%. The proliferation of subprime auto loans and government issued student loan debt, along with declining real wages, has driven the ratio to new heights. How much higher can it go? The jobs market is as good as it is going to get. The bad debt has already begun to rise.
For this ratio to fall to a sustainable level would require a surge in salaries and wages and/or a dramatic reduction in consumer debt. The surge in salaries and wages is not in the cards. Not a chance in this warped warfare/welfare state. The coming financial collapse will result in billions of consumer debt being defaulted upon. This ratio will decline as our delusional consumption society implodes. Infinity and beyond is not sustainable. We will be crashing back to earth.
What’dya mean the card was declined? That’s the good one!
Invest in precious metals. Lead and machined steel to sling it.
Absolutely insane how many aborigines think money is something that magically shows up on the card every month, and then Walmart has everything you need. Any interruption of that reality is really going to shock the system. Get out of the cities.
Four hours after the EBT card stop working it will get ugly…….
Should I load up on consumer debt at a low rate and use it to purchase long lasting assets held in my possession? Thereby acquiring the assets for the low rate monthly payments, waiting for the great default.
Stupid question of the day time (and keep in mind I’m up almost six hours early running on 3 hours of sleep)………….Say I have a total debt load of $500,000 and salary of $50,000. That represents 10% right?
If so, then the numbers put forth in the post would mean that people making $50,000 have in excess of $2,000,000 in debt right?
If that is true then “full retard” does not begin to do it justice! Holy shit! Is this the *average* consumer debt ratio? Sounds to me like the banks went full retard as well. I knew shit was end of the world bad but I had no idea the numbers were that bad!
Dividing my debt by income gives me 0.37%. My blood pressure goes up every time I get the monthly statements. I’d probably stroke out and my head would explode just before my bloated carcass flew around the room like an exhaling balloon if I had a debt/income ration of 40%+! Scratch that………5% would do it! I cannot even get my head around the “brief moment of sanity” with the high 20% ratio shown on that chart.
No fucking wonder Habib rubs one out under his desk when he sees my credit score! Dumb bastard sees lottery like potential in selling me furniture on credit. I should probably quit screwing with that guy before he blows me away in a fit of rage when I tell him I want to compare prices.
It is way too early on a Sunday morning for the reality of a post like this.
Off topic but has anyone noticed how blue the skies have been this past year? Normally there is this persistent white haze that obscures the blue skies which I have been attributing to jet contrails since 9/11. The last time I saw the skies this consistently clear and blue (right down to the horizon) was immediately after 9/11 when all planes were grounded. The longer the planes were grounded, the better the skies looked. Within days of resuming flights, the haze was back and has been pretty consistent up until the last year.
As an amateur astronomer I am always looking at the sky even in daytime and we still get hazy days but the past year has been exceptionally low in haziness. The skies have been brilliantly and consistently blue from zenith to horizon. As I write this my skies have a surreal, deep blue color with just a few puffy white clouds and no signs at all of contrails.
IS- there is a growing chorus of chemtrail advocates. I have no clue. I can say this, I watch as well, not all commercial airliners leave a trail all of the time. It has been the coolest, wettest year any in my family have ever experienced, including the venerable.
IS
The chart shows that if you have a $100,000 salary, you have $43,000 of consumer debt – not including your mortgage.
Dornbusch’s Law: The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.
Dr. Rudi Dornbusch
Thanks admin. I was sure I had something screwed up. I’ve only got a very small portion of my mortgage and a much smaller portion of my wife’s student loan in debt, all of which could easily go away Monday with current cash reserves. I absolutely hate debt but I’d rather be cash rich in this environment.
It’s hard to believe that any bank would let someone get this deep in debt even in good times.
IS
The average car loan is now $30,000.
The average rolling balance on credit cards is $12,000.
The average college graduate now has $33,000 of student loan debt.
ottomatik, I was speaking purely about contrails (moisture and temp driven) as opposed to chemtrails. For astronomy purposes it’s best to observe through cool, clean, dry air which is why professional observatories are located on high mountains, usually in desert locations. Simply watching contrails of jets flying at different flight levels will give a good indication of the *seeing* conditions. Large, long, billowing contrails are bad and short or no contrails is good. Relative moisture and temperature levels at various altitudes are given away by the contrails.
Chemtrails are a different beast and probably have a lot to do with what is in them besides water.
I suspect a change has occurred in the upper and mid level jet streams in my area or, if it’s chemtrail driven, they have stopped or reduced them in my area.
Administrator says:
“The average car loan is now $30,000.
The average rolling balance on credit cards is $12,000.
The average college graduate now has $33,000 of student loan debt. ”
And most of those people have low or no income outside of welfare I’d bet.
Yep, we’re fucked!
I/S -Off topic but has anyone noticed how blue the skies have been this past year?
Yes, my wife and friends where just discussing this topic just yesterday..we attributed to fall weather, but whatever the cause . I welcome it nevertheless.
flash, since you’ve been seeing the same thing and you’re in Dixie and I’m near Canada that rules out a jet stream change for the most part. Maybe the US Dept of Chemtrails got defunded?