It’s not just the federal deficit that is rising. Consumer credit increased at a six-percent annual rate in April, according to the Federal Reserve. The only time we’ve borrowed more heavily is in 2001, when borrowing was all there was to do.
We’re spending far in excess of current income. Not good on several levels, the least of which is the growing threat of inflation, which, if checked by higher rates, could suddenly contract consumer spending, business spending and any other forces keeping the economy from turning on itself and going into a tailspin.
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