Americans Are Taking on Record-Breaking Debt... But There’s a Way to Protect Your Purchasing Power

[Inside Wall Street with Nomi Prins]( Maria’s Note: Tonight at 8 p.m. ET, Nomi is holding a special market briefing. She says you need to be there… Because she’ll reveal a plan to prepare for what she calls “The Fed’s Final Mandate.” According to Nomi, the dollar is under threat. But it's not from China, Russia, or any foreign power. The single biggest threat is domestic – from within our own borders. And the window to protect your portfolio and your money is closing on July 31. [Join the RVSP list for Nomi’s Countdown to Chaos for free with one click, right here.]( Then, read on for this new essay from Nomi, to help you prepare for the big night… --------------------------------------------------------------- Americans Are Taking on Record-Breaking Debt... But There’s a Way to Protect Your Purchasing Power By Nomi Prins, Editor, Inside Wall Street with Nomi Prins The American consumer is being pushed to the brink. Since the post-Covid economic recovery, consumer demand for homes, automobiles, and vacations has skyrocketed. But it came at a cost... Consumers and the dollar are now on a collision course. As you know, inflation peaked at 9.1% last year. That was the highest annual increase in 40 years. Although the latest inflation figure has dropped to 4%, Americans are still feeling significant price squeezes. For example, the U.S. is facing an unprecedented rise in food insecurity. Groceries are 20% more expensive than two years ago. In 2022, food prices increased by 9.9%. And this year, they’re expected to go up by 6.2%. Gas stations also saw a 33.5% price increase from 2021. Some sectors – like metal manufacturing – even saw inflation jump by about 60% or more in the past year. Furniture prices are still up 41%. Motor vehicle parts rose by 25% in the past year. These beneath-the-headline numbers show that American consumers are feeling a pinch far greater than the 4% official inflation figure. This same data indicates new cracks in your cost of living. And they have massive implications for the economy, the financial system, and your money. Let me explain… Recommended Link [COUNTDOWN TO CHAOS Dr. Nomi Prins’ Biggest Warning of Her Career TONIGHT AT 8 PM ET]( [image]( Former Goldman Sachs exec and PhD economist Dr. Nomi Prins is now stepping forward with the biggest warning of her career. In short… Between now and July 31st – the Federal Reserve will blindside Americans with an unprecedented attack on the dollar. It will have devastating – and permanent – consequences on the lives of every man, woman, and child in America. To help you prepare, Dr. Prins is hosting an emergency briefing tonight at 8 PM ET. [Instantly RSVP here.]( (By clicking the link, your email address will automatically be added to Nomi’s RSVP list.) -- What Story Is the Data Telling Us Today? Americans are taking on record-breaking debt just to make ends meet. At first glance, it may not seem like it. In March, for instance, spending on credit and debit cards per household rose by only 0.1% relative to last year. That's in stark contrast to the over 40% growth in spending seen in March 2021 on a year-over-year basis. In other words, Americans’ spending on new items is in a downward trend. That tells us that the hot economy of the last several years might be cooling. But that’s only part of the story. Consumer spending is down because prices remain high, not because demand for items has waned. Items still cost too much. So Americans are spending less overall on new things... and taking on more debt to afford what they do buy. As I mentioned above, Consumer Price Inflation (CPI), which is one measure of economy-wide inflation, increased 4% in May relative to the year prior. That was a slowdown from April, but inflation is still above the Fed’s target of 2%. You can see the lingering price squeeze in the chart below. It shows inflation in May, broken up into common household categories. [Chart] Areas such as rent, food costs, daycare, electricity, and medical supplies remain elevated when compared to last year. So, it’s no wonder that Americans are taking on more debt. In fact, the latest data from the Federal Reserve reveals that American consumers in total have racked up nearly $1 trillion in debt this year. That’s up a massive $250 billion in only two years. You can see this in the next chart below… [Chart] This data only counts for debt that has been issued through U.S. commercial banks. There could be more we’re not seeing. According to research from Investopedia, which analyzes a wider data set from banks, the median rate on new credit cards as of June skyrocketed to 23.74%. That’s the highest rate in more than 20 years. The numbers tell the story. Americans are taking on more debt. And they are paying more for it. This is happening at a time when, according to the Fed’s 2022 Economic Well-Being of U.S. Households survey, nearly 40% of Americans can’t cover a $400 emergency expense. All in all, the American consumer is getting the short end of the stick – twice. Higher prices and a higher cost of debt. And things could soon take a turn for the worse… Recommended Link [TONIGHT at 8 PM ET: Is YOUR Bank the Next to Fold?]( [image]( Already, this year's bank failures eclipse the 2008 crisis. But former banking exec Dr. Nomi Prins says it’s about to accelerate… A restricted internal report from the Federal Reserve admits 722 American banks are at risk of failure. Worse – the crisis is now set to come to a head just days from now, by July 31st. If you hold $5,000 or more at a U.S. bank… You need to join Dr. Prins in her emergency briefing, tonight at 8 PM ET, where she’ll show Americans how to prepare for the worst – and even turn this alarming event into a massive opportunity. [Instantly RSVP here.]( (By clicking the link, your email address will automatically be added to Nomi’s RSVP list.) -- The Fed vs. the U.S. Dollar After raising rates 10 straight times, Fed policymakers opted to hold rates at 5-5.25% last week. That means we’re in Stage 2 of what I call the Fed’s three-stage pivot, or a pause in rate hikes. The Fed’s chairman, Jerome Powell, claimed that the central bank would take a “data-dependent approach” toward its policies. He noted that inflation remains relatively high. He didn’t talk about the dollar. And yet, today, the foundation of the dollar is breaking. For many Americans, the great distortion in the cost of money has meant a squeeze on families and household budgets. Recommended Link [Tonight at 8 PM ET: PhD Economist: “Historic Dollar Attack Imminent!”]( [image]( For the first time in a long time, Americans are nervously asking: “Is our money safe?” If you’re sensing something’s not right in our financial system, you’re not alone. The truth is – the dollar is at risk. But most don’t understand exactly why. They’re oblivious to the destructive event that’s set to hit our country by July 31st… and the devastating consequences it will have on the lives – and finances – of millions. Tonight at 8 PM ET, Dr. Prins is airing an emergency briefing to show Americans how to prepare for the worst – and even turn this alarming event into a massive opportunity. [Click here to RSVP for this very important briefing.]( (By clicking the link, your email address will automatically be added to Nomi’s RSVP list.) -- And, on July 31, the Fed is set to unleash another attack on the dollar. I call it the “Fed’s Final Mandate.” It will be the greatest monetary sleight of hand in the history of America... and it will mark the end of the dollar as we know it. Tonight at 8 p.m. ET, I’m holding an emergency briefing to reveal what the Fed has in store for our financial system. During the event, I’ll also tell you all about a little-known way you can position yourself ahead of what’s coming. [Reserve your spot with one click here.]( Don’t sit on the sidelines while the elites slowly erode your purchasing power. Instead, you can protect your wealth and your future – all using an asset with the potential to deliver as much as 50x profits. I’ll see you soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. 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