America needs a debt overhaul. Soon.
The clock is ticking…
ZeroHedge, Feb 13, 2018 – Excerpts:
Aggregate household debt increased for the 14th straight quarter, rising by $193 billion (1.5%) to a new all time high, and as of December 31, 2017, total household indebtedness was $13.15 trillion, an increase of $572 billion from a year ago – the fifth consecutive year of increases – equivalent to 67% of US GDP, versus a high of around 87% in early 2009. After years of deleveraging in the wake of the 2007-09 recession, household debt has risen more than 18% since the trough hit in the spring of 2013.
Some more big picture trends:
- Mortgage balances, the largest component of household debt, increased by $139 billion during the quarter to $8.88 trillion from Q3 2017.
- Balances on home equity lines of credit (HELOC) have been slowly declining; they dropped by another $4 billion and now stand at $444 billion.
- Non-housing balances, which have been increasing steadily for nearly 6 years overall, saw a $58 billion increase in the fourth quarter.
- Auto loans grew by $8 billion to $1.22 trillion
- Credit card balances increased by $26 billion to $834 billion
- Student loans saw a $21 billion increase to $1.38 trillion
There were some red flags of caution: confirming recent negative data from Wells Fargo, and suggesting that the housing recovery is stalling, mortgage originations were at $452 billion, down from $479 billion in the third quarter.
Also troubling: There were $137 billion in auto loan originations in the fourth quarter of 2017, a small decline from 2017Q3 but making 2017 auto loan origination volume the highest year observed in our data.
Meanwhile, credit card balances increased by $26 billion. Aggregate credit card limits rose for the 20th consecutive quarter, with a 1.0% increase.
The table below summarizes the key changes in household debt and credit developments as of Q4 2017
America’s one and only ‘debt recovery plan will;
- Restore economic liberty and financial health to U.S. families
- Re-ignite economic growth
- Stabilize the banking system
- Provide $1 trillion budget surpluses at the federal level for each of the next five years
The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens. It is a comprehensive plan with long-term economic and social benefits for citizens and government.
The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.
The Leviticus 25 Plan – An Economic Acceleration Plan for America
“He who will not apply new remedies must expect new evils.” – Sir Francis Bacon