Credit Card Debt Soars to One Trillion!

Some time ago I warned that the faltering subprime credit mess would put pressure on consumers to turn to their credit cards for money. The start of 2008 is showing just that, many American's have now "balooned" their credit card debt to a record one trillion dollars.

This is an enormous problem as our entire economy is built on a system of credit. Debt is what makes it possible to own a home, buy a car, build a business and believe it or not retire. But why does a person need credit to retire? The answer is that inflation, low Social Security payments, and stock market madness has led to a revolution in "Reverse Mortgage" retirement. This allows an elderly person to sell their home to the bank before they pass on.

Identity theft has compounded this debt problem, and resulted in a decrease in FICO Scores. The signs of contracting credit is placing a burden on all areas of the American Economy. Banks afraid of more defaults are eliminating subprime lending, creating superfunds to absorb losses and even borrowing from overseas investors.

Today Gold hit $900.00 per ounce, this is an indication that world markets are becoming increasingly pessimistic about the U.S., and possibly the Global Economy. The real challenge will emerge when the new bankruptcy law is imposed against Americans who believe that going broke is an option as if like it was for our parents. This may not be the case anymore, because the level of difficulty in having your debt pardoned, and being granted a fresh start is not what it used to be.

Bailing on your debt has more in common with trying to bail on child support today. Although there is no "official" debtors prison we do have "contempt of court" of which is the same thing. For now America's future economic fate is no longer in Americas hands. We have something called a "Dollar Peg" that is in the hands of foreign nations who are mired with troubled dollars they no longer want.

Many nations are already distancing themselves from the U.S. currency, while Americas leaders continue to ignore all the warning signs even those from Americas chief accountant David Walker who has gone public on the debt and credit fiasco undermining our national sovereignty.

David's message, recently was again on Glenn Beck.