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Title: Consumer Credit Hits A Brick Wall With Credit Cards Maxed Out
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URL Source: https://www.zerohedge.com/markets/c ... ck-wall-credit-cards-maxed-out
Published: Jul 8, 2022
Author: Tyler Durden
Post Date: 2022-07-08 18:20:54 by Horse
Keywords: None
Views: 182
Comments: 4
The recession which unofficially started in Q1 and worsened in Q2, is about to get much worse in Q3 when the key support pillar of the US economy, consumer spending which accounts for 70% of GDP, goes into reverse now that credit cards have to be paid down. Poster Comment: SEE CHART
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#1. To: Horse (#0)
I have never understood this concept as consumers normally need to get money from somewhere else in order to consume, so consumption must be offset by production. And everything that is produced must also be consumed or it is wasted production and that's true in every economy. So for me, consumer spending in every economy in every country necessarily accounts for 100% of GDP in that country or economy.
100% minus Savings minus Taxes = Consumption. Early on in the development of a nation, Investment and Innovation are a bigger factor.
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Top • Page Up • Full Thread • Page Down • Bottom/Latestsupport pillar of the US economy, consumer spending which accounts for 70% of GDP
#2. To: Pinguinite (#1)
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