by Martin Armstrong, Armstrong Economics:

I’ve long been sounding the alarm on the private debt crisis sweeping the Build Back Better nations. US government debt equaled 122.3% of the nation’s GDP in 2023, a cost that will be passed on to the taxpayers. As of Q1 2024, US household debt stood at $1.77 trillion; $12.44 trillion held in mortgage debt, $1.62 trillion in autos, $1.12 trillion in credit card debt, and $543 billion in other forms. The average household debt was around $147,500 at the end of 2024. Mortgage prices are, therefore, debts have been on the rise, similar to autos, and more consumers are placing basic necessities on credit. Major banks across the US are now reporting that Americans are failing to pay off this debt.