This is the first time in history, I believe, that the final consequence of operating a debt-based economy and citizens living debt-based lifestyles will occur at exactly the same time. If citizens had let their borrowing get out of hand but government did not, the situation would resolve itself.
In this case though, debt creation began with the government, in the Reagan administration. Borrowing has been relentless since. To make matters more complex, in this era, Americans mostly stopped deciding for themselves, what they want to buy. That decision has been taken over by government, by means of political power. Want folks to buy houses, fine, subsidize mortgage rates. Give subsidies to folks who install solar panels, and so on. Then there is the fact that the country is over financed. Never before has so much money financed so little in the way of production. Never before have so many surrendered rights to an authority, thinking that it was prudent to do so. Independent thought is now as much as extinct..
So, what will be the ultimate outcome of our situation? The different possibilities are simply unfathomable.
“According to the Consumer Financial Protection Bureau, Americans paid $130 billion in interest and fees on their credit cards over the last year. That was the largest amount on record.
As prices skyrocketed last year, Americans blew through their savings to make ends meet. Aggregate savings peaked at $2.1 trillion in August 2021. As of June, the San Francisco Fed estimated that aggregate savings had dropped to $190 b” https://schiffgold.com/key-gold-news/americas-growing-economy-brought-to-you-by-visa-and-mastercard/