Consumer debt totals $15.6 trillion in 2021, a record-breaking increase in over 40 years according to the Federal Reserve’s New York district.

U.S Inflation is now running at 7.5 percent the 

Highest in over 40 Years

 

The least Unofficial Inflation Statistics suggest that Inflation is running even Hotter at 15 Percent.

The 1980s CPI (Consumer Price Index) measurement this inflation is due to a combination of money printing by the Federal Reserve. In response to pandemic restrictions as well as supply chain problems caused by pandemic restrictions notice a pattern.

This inflation combined with low interest rates has incentivized consumers in the United States to borrow more than ever before causing consumer debt to reach over 15 trillion dollars in 2021.

This is bad news because the Federal Reserve is expected to begin raising interest rates in the coming weeks in an attempt to tame inflation. This means this 15 trillion dollars of debt is going to become a lot more expensive to pay off and some individuals & institutions start to default on debt payments they can't afford. If that happens assets will be sold to cover the costs of servicing that debt and this will lead to a market crash across the board.

History suggests that the Federal Reserve will reverse course and reduce interest rates. when the markets start to collapse but doing so would result in even more borrowing and therefore more inflation.

It's not looking good for feared and this leaves only two solutions a Central Bank Digital Currency which puts governments in total control of monetary policy or cryptocurrencies with immutable monetary policies built into their code.

Current trends suggests that crypto is where people are increasingly placing their bets particularly BTC which was built as a response to the same reckless monetary policies we're seeing today.