{"id":483918,"date":"2017-05-06T07:34:31","date_gmt":"2017-05-06T07:34:31","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=483918"},"modified":"2017-05-06T07:34:31","modified_gmt":"2017-05-06T07:34:31","slug":"the-coming-debt-reckoning-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=483918","title":{"rendered":"The Coming Debt Reckoning"},"content":{"rendered":"
\"\"<\/a><\/div>\n

By MN Gordon<\/a><\/span> <\/p>\n

<\/div>\n<\/p>\n

Licking the Log<\/p>\n

American workers, as a whole, are facing a disagreeable disorder. Their debt burdens are increasing. Their incomes are stagnating.<\/p>\n

There are many reasons why. In truth, it would take several large volumes to chronicle all of them. But when you get down to the \u2018lick log’ of it all, the disorder stems from decades of technocratic intervention that have stripped away any semblance of a free functioning, self-correcting economy.<\/p>\n

Happy workers from the distant past\u2026<\/p>\n

The financial system circa 2017, and the economy that supports it, has been stretched to the breaking point. Shortsighted fiscal and monetary policies have propagated it. The result is a failing financial order that has become near intolerable for all but the gravy supping political class and their cronies.<\/p>\n

Take consumer spending. This is the primary driver of the U.S. economy. Yet it requires vast amounts of credit. In fact, American consumers presently hold $1 trillion in revolving credit. At the same time, they have nowhere near the income needed to finance these debts, let alone pay them off.<\/p>\n

Remember, the flip-side of credit is debt. Obviously, the divergence of increasing debt and stagnating incomes is a condition that cannot go on forever. But it can go on much longer than any sensible person would consider possible.<\/p>\n

The consumer revolving credit mountain \u2013 back at its previous peak \u2013 click to enlarge.<\/p>\n

Debt Slaves<\/p>\n

If you haven’t noticed, the financial services industry is extremely accomplished at compelling people to go whole hog into debt. Moreover, the entire fiat based financial system, which depends on ever increasing issuance of debt, hinges on it. Just a slight contraction of credit, like late 2008, and the whole debt repayment structure breaks down.<\/p>\n

On an individual basis, there are only so many credit cards that can be maxed out before the shell game ends. Wolf Richter, of Wolf Street, recently clarified the relationship between the economy and deep consumer debt:<\/p>\n

\u201cThe US economy is fueled by credit. Americans turning themselves into debt slaves makes it tick. Take it away, and what little growth there is \u2013 nearly zero in the first quarter \u2013 will dissipate into ambient air altogether. So it’s time to take the pulse of our American debt slaves.<\/p>\n

\u201cIn a new study, life insurer and financial services provider Northwestern Mutual found that 45 percent of Americans that have debt spend \u2018up to half of their monthly income on debt repayment.’ Those are the true debt slaves.<\/p>\n

\u201cExcluding mortgage debt, Americans carry an average debt of $37,000. Of them, 47 percent carry $25,000 or more, and more than 10 percent carry $100,000 or more in debt, excluding mortgage debt. Most of them expect to get out of debt before they die, but 14 percent expect to be in debt \u2018for the rest of their lives.\u201d’<\/p>\n

Debtor’s prison, new and old.<\/p>\n

The Coming Debt Reckoning<\/p>\n

Consumers with elevated debt levels are playing a high risk game. They are one job loss or illness away from losing it all. Even without such difficult \u2026read more<\/a> <\/p>\n

Source:: Acting Man<\/a><\/p>\n

The post <\/a>The Coming Debt Reckoning<\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By MN Gordon Licking the Log American workers, as a whole, are facing a disagreeable disorder. Their debt burdens are increasing. Their incomes are stagnating. There are many reasons why. In truth, it would take several large volumes to chronicle all of them. But when you get down to the \u2018lick log’ of it all, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/483918"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=483918"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/483918\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=483918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=483918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=483918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}