As the administration of Democrat President Joe “Empty Shelves” Biden has caused inflation to soar – and seems completely unperturbed by it – the household debt of American families has broken records, surging past $15 trillion for the first time in the history of the United States.
According to the latest data from the Federal Reserve, while it had leveled off during most of the duration of the COVID-19 pandemic so far, in the third quarter, the combined total debt of US households spiked by a whopping $286 billion, to reach the mind-boggling figure of $15.24 trillion.
Empty Shelves Joe, thank you so much!
Needless to say, the third quarter of 2021 is precisely the period when Bidenflation – the soaring inflation caused by the abject incompetence, blunders, and overall ill intentions of the Biden regime – just went berserk on the US economy.
Thus, in 2021 Q3, mortgage balances, traditionally the biggest part of household debt, spike $230 billion, to reach a combined total level of $10.67 trillion on September 30, 2021.
The stupefying new overall mortgage figure is seen as a reflection of the accelerating home prices.
Besides that, the total non-housing balances went up by $61 billion in July – September of this year, which includes a $28 billion spike in auto loan balances.
That was primarily brought about by – guess what! – Empty Shelves Joe’s horrendous supply chain crisis which caused the prices of all vehicles, new and used alike, to go through the roof.
Also in the third quarter, student loan balances increased by $14 billion, which is attributed to the fact that it is the first quarter of the academic borrowing year.
Credit card debt went up by $17 billion in the said period, remaining the only segment of the total household debt that hasn’t broken a record, as the combined total is still $123 billion below the 2019-end level.
While it is noted that a good share of the American households actually managed to pay down some debt and up their savings in the earlier stages of the pandemic due to spending cuts and partly government stimulus checks, the positive trend has been completely reversed in recent months of climbing inflation.
As a result, the level of private savings at the end of this year’s third quarter is back to being comparable with trends before the pandemic.
Bidenflation went berserk in September
According to New York Fed research officer Donghoon Lee, there is already a reversal of some of the trends in credit card balance that were prominent for the better part of the pandemic with respect to paying down balances, increasing consumption, and growing credit card usage.
It is noted that the key role in the spiking of household debt is due to inflation – Bidenflation really.
Federal data demonstrates that, for instance, the prices of new vehicles went up by 8.7% in September year-on-year, while those of used cars shot up by a whopping 24.4%.
According to Radian’s Home Price Index, US home prices in September spiked at an annualized rate of a full 17.6% from the prior month, thus registering the sixth month in a row of month-on-month rate increases.
And to think that – for all of that, and so much more – we have solely Joe “Empty Shelves” Biden and his gang of abject Democrat incompetents to thank!