Americans Boost Debt On Cars, Credit Cards

by JASmius

Suckers:

Consumer borrowing in the U.S. rose more than forecast in July as non-revolving loans including those for cars climbed by the most in three years.

The $26 billion increase in credit exceeded the highest forecast in a Bloomberg survey and followed an $18.8 billion advance in June that was more than previously estimated, the Federal Reserve reported today in Washington. Non-revolving loans, which include borrowing for cars and college tuition, climbed $20.6 billion, the biggest gain since July 2011. Credit- card lending rose for a fifth straight month.

To put it into a single phrase.....



Listen to this justification:

A stronger job market and rising home values are giving households the confidence to take on debt to buy big-ticket items such as motor vehicles. Banks are also becoming more willing to lend, which could encourage more consumers to boost their spending, which makes up the biggest part of the economy.

To put it in a single word....



The job market hasn't been this weak in eighty years.  The unemployed American population has never been larger, as I know firsthand.  Rising home values are simply another empty bubble waiting to pop, driven by Democrat Financial Logic Bomb II.  This is, in a word, madness.  The same kind of madness that has propelled American voting choices the last two presidential elections.

But don't just take my word for it:

The Federal Reserve is in the midst of winding down its third round of quantitative easing (QE3), and economist and financial author James Rickards says that doesn't bode well for the economy and financial markets.

After the Fed's prior two quantitative easing operations, both the economy and the stock market suffered, he notes. Rickards is the author of "The Death of Money: The Coming Collapse of the International Monetary System."

"It's happening again, but in slow motion, because the QE3 taper was gradual and from a higher level," he tells CNBC. "When this third taper is done in November, the weakness will become apparent."

The economy and stock market suffer after each Fed printing binge because the economy is in a permanent depression that that currency debasement camouflages.  That's why every single solitary piece of purported "good economic news" is phonier than a proverbial three dollar bill (you know, the one with Joe Biden's picture on the front).  It's all a fiat money- and debt-fueled delusion, puffed up to Jiffy-Pop popper proportions.  And it will produce the result that inevitably follows all such bubbles....



....and when it does, will anybody finally be motivated to learn basic economics and the concept of risk?

Are you kidding?