Why You Should Expect a Once-in-a-Lifetime Debt Crisis
U.S. credit card debt surpasses $1 trillion
By Elliott Wave International
On a national level, a debt crisis occurs when a country is unable to pay back its government debt. This might result from government spending exceeding tax revenues for an extended period.
On an individual level, a crisis can result from too little income and too much debt -- that simple. This sometimes means defaulting on a car loan, for example, or even declaring bankruptcy.
Part 1 of the June Elliott Wave Theorist, a publication which covers major financial and cultural trends, said:
A debt crisis is brewing, and higher long term interest rates will add to the pressure.
Indeed, as Kiplinger noted on Aug. 18:
Credit Card Use Spikes for Cash-Strapped Consumers
Credit card use amps up as consumers reckon with inflation and higher
interest rates; 39% of Americans living paycheck-to-paycheck, study
shows.
The August Elliott Wave Theorist had more to say about the looming debt crisis as it showed these side-by-side charts:
