Debtor Nation: 233 Million Credit Card Accounts Were Opened Last Financial Quarter In The US

On August 2nd the New York Federal Reserve released their quarterly economic report on household debt and credit for the second economic quarter of 2022.

According to their metrics, consumer debt increased by $312 billion (2%) to $16.15 trillion, in just that quarter alone. Balances have reportedly increased another $2 trillion since 2019, prior to the Covid-related lockdowns and restrictions, the Feds note.

One of the most startling statistics found in the report were an astronomical ‘233 million new accounts were opened in the second quarter, an increase from the previous quarter and the highest seen since 2008,’ the New York Feds reported. To put that in perspective, the entire U.S. population, according to Worldometer, is currently over 331 million. In theory, that would translate to a tad bit over 70% of the entire population opening a new credit card account, per capita.

Moreover, the Feds reported that credit card balances increased by $46 trillion. The Feds added, ‘although seasonal patterns typically include an increase in the second quarter, the 13% cumulative increase in credit card balances since Q2 2021 represents the largest in more than 20 years.’

The Quickest Way To Know The Economy Is Broken Beyond Repair

Auto loans also increased by another $33 billion this past quarter, though student loans remained relatively unchanged at $1.59 trillion.

‘Other balances–which includes retail cards and other consumer loans –increased by a robust $25 billion. In total, non-housing balances grew by $103 billion, the largest increase seen since 2016,’ the New York Federal Reserve noted.

The second quarter of 2022 showed robust increases in mortgage, auto loan, and credit card balances, driven in part by rising prices. While household balance sheets overall appear to be in a strong position, we are seeing rising delinquencies among subprime and low-income borrowers with rates approaching pre-pandemic levels.

Joelle Scally, Administrator of the Center for Microeconomic Data at the New York Fed, said

For more specific details, check out the Fed’s quarterly report here.

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AUTHOR COMMENTARY

[7] The rich ruleth over the poor, and the borrower is servant to the lender. [26] Be not thou one of them that strike hands, or of them that are sureties for debts. [27] If thou hast nothing to pay, why should he take away thy bed from under thee?

Proverbs 22:7, 26-27

When I saw that number my jaw dropped a little. Granted, this is not overly surprising, at least to me that is, but it is just mind-boggling to see how indebted this nation is.

To clarify, obviously 233 million individuals did not each open a new account: a large chunk of this came via the already debtor slaves opening up several more new accounts. People are borrowing beyond their eyeballs to maintain this illusion of the middle class lifestyle that, does not exist, and trying to impress their neighbors and random losers on social media, to feed their self-adulation and narcissism. That’s the REAL problem here: yes, the wicked government is to blame; but the people and the false preachers up and down this country are the root, as they are immensely covetous (as 2 Timothy 3:1-5 warned would happen).

[6] But godliness with contentment is great gain. [7] For we brought nothing into this world, and it is certain we can carry nothing out. [8] And having food and raiment let us be therewith content. [9] But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. [10] For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. [11] But thou, O man of God, flee these things; and follow after righteousness, godliness, faith, love, patience, meekness.

1 Timothy 6:6-11

Could you imagine the people of today being content with little, possibly to the point of only food and clothes? Now THAT’S comedy! But, alas, we live in the age of Laodicea, where the deluded nimrods say, “I am rich, and increased with goods, and have need of nothing;” but Jesus Christ retorts that these losers “knowest not that thou art wretched, and miserable, and poor, and blind, and naked” (Revelation 3:17).

A day, nay, a lifetime of reckoning is approaching quite soon, and the strong majority of people will not escape what shall befall them. We often talk about that by 2030 the masses will “own nothing and be happy;” but in truth, what do people own right now??

What An Implosion In The Debt Market Would Look Like – And It Isn’t Pretty

As I said, a collapse of epic proportions is coming, and the piper will come to collect. Consider this passage of scripture and how it is identical to today:

[16] Moreover the LORD saith, Because the daughters of Zion are haughty, and walk with stretched forth necks and wanton eyes, walking and mincing as they go, and making a tinkling with their feet: [17] Therefore the Lord will smite with a scab the crown of the head of the daughters of Zion, and the LORD will discover their secret parts. [18] In that day the Lord will take away the bravery of their tinkling ornaments about their feet, and their cauls, and their round tires like the moon, [19] The chains, and the bracelets, and the mufflers, [20] The bonnets, and the ornaments of the legs, and the headbands, and the tablets, and the earrings, [21] The rings, and nose jewels, [22] The changeable suits of apparel, and the mantles, and the wimples, and the crisping pins, [23] The glasses, and the fine linen, and the hoods, and the vails. [24] And it shall come to pass, that instead of sweet smell there shall be stink; and instead of a girdle a rent; and instead of well set hair baldness; and instead of a stomacher a girding of sackcloth; and burning instead of beauty. [25] Thy men shall fall by the sword, and thy mighty in the war. [26] And her gates shall lament and mourn; and she being desolate shall sit upon the ground.

Isaiah 3:16-26

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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