The majority of the time, the huge majority of Americans simply do not appreciate economics. And it discomforts me to state that, since I have been running a site about economics for more than a decade. However it holds true. Under normal circumstances, most hard working Americans do not have the time or the energy to dispute the finer points of financial policy. And now things have actually altered. Here in 2022, our leaders have actually messed things up so severely that unexpectedly practically everyone is feeling the pain. Many people just desire economic conditions to “go back to normal”, but that isn’t going to be so easy.
Over the past couple of years, the Federal Reserve has pumped trillions of fresh dollars into the financial system.
You simply can’t “undo” that.
And our political leaders in Washington have been on the biggest borrowing spree in all of human history. I believe that a lot of them genuinely believed that there would never ever be any major consequences, but as Forbes has actually appropriately kept in mind, we “are now paying a heavy cost for this magical thinking”…
Unfortunately, Americans are now paying a heavy cost for this magical thinking. Inflation– spurred at least in part by record government costs and inactiveness on other concerns– is performing at its greatest rate since 1982. The rates for meat and eggs are up 12.2% given that in 2015. Furnishings and bed linen is up 17% and used automobiles and trucks are up 40.5%.
Meanwhile, the Treasury Department recently reported America’s total nationwide debt is now over $30 trillion– the highest ever. To put this in context: If you stacked $30 trillion of $100 costs you might nearly reach the weather satellites orbiting the earth at over 20,000 miles above us.
Today, we have definitely massive mountains of money going after a smaller sized swimming pool of products and services because of the pandemic.
As a result, the cost of living has been soaring into the stratosphere.
For example, one brand-new study discovered that 82.2 percent of brand-new vehicle purchasers really paid above sticker price during the month of January …
A study from the online market found that 82.2% of new car purchasers paid over the manufacturer’s recommended market price (MSRP) in January, up from.3% in January 2020, prior to the coronavirus pandemic started impacting the market
The average price paid above sticker label was $728, while savvy buyers were getting a discount of $2,648 just two years ago. Cadillac’s clients led the way by paying a $4,048 premium, followed by Land Rover’s ($2,565) and Kia’s ($2,289).
In my whole life time, I have never seen anything like this.
Years back, I remember spending hours hammering a salesperson up until I was completely pleased that the dealer would not knock off a single cent more from the rate of a used vehicle that I wanted.
And now things have actually completely changed.
Today, almost everybody is paying above MSRP.
Obviously it is becoming more pricey to sustain our vehicles also. On Wednesday, the average rate of a gallon of gas in California hit a brand name new record high…
Gas in California hit a record high of $4.72 a gallon on average on Wednesday– and professionals say a massive $5 a gallon will likely be the standard there in a matter of months, if not sooner.
Regretfully, 5 dollar gas is only just the beginning.
In reality, one expert that was interviewed by Yahoo Financing has in fact raised the specter of 7 dollar gas…
Drivers best start bracing for another surge in gas prices in the middle of the conflict between Russia and Ukraine and years of under-investment by the oil market, alerts one veteran energy strategist.
“My guess is that you are visiting $5 a gallon at any triple-digit [oil rates] … as soon as you get to $100. And you might get to $6.50 or $7. Forget about $150 a gallon, I don’t understand where we will be by then,” Energy Word creator Dan Dicker stated on Yahoo Finance Live.
Can you envision paying seven dollars for a gallon of gasoline?
That absolutely seems insane to me.
But soon it will happen.
Real estate rates continue to rise too. In fact, we are being told that a current spike in lumber prices has increased the average price of a new home by almost $19,000…
“If individuals aren’t listening now, the alarming forecasts that we have actually been making appear to be coming to life,” National Association of Home Builders CEO Jerry Howard said on “Varney & Co.” Wednesday.
Unpredictable lumber costs have actually triggered the average cost of a brand-new single-family home to increase by $18,600, according to a brand-new statistic from the NAHB.
Heating our houses is ending up being a lot more painful too. According to the Heartland Institute, the average American household saw their cooling and heating expenses jump “by as much as $1,000” last year …
A new analysis by the Heartland Institute reports the common American family’s house cooling and heating expenses increased by as much as $1,000 in 2021 as an outcome of President Joe Biden’s energy and ecological policies.
Needless to state, most Americans were not gotten ready for a dramatic shift in the expense of living such as this.
At this moment, 70 percent of Americans are living paycheck to income.
So how are individuals making ends satisfy? Well, we just learnt that credit card debt rose at the fastest pace ever seen throughout the 4th quarter of 2021 …
Americans have actually been swiping their credit cards at record speed in the last couple of months, as increasing inflation consumes into the savings people collected throughout the pandemic.
The overall US family financial obligation hit $15.8 trillion in the 4th quarter of 2021, the New York Fed reported this week, seeing an increase of $333 billion from the previous quarter. Credit card balances alone hit $860 billion, up $52 billion in that same timeframe. That’s the largest quarterly boost the Fed has seen in the 22 years it’s been collecting data, the scientists state, adding that the rise in debt overall was driven by house and cars and truck purchases.
The middle class is being systematically damaged, and it is happening right in front of our eyes.
And the truth is that we can see proof of this all around us. For example, simply check out this footage that one man just recently took of his neighborhood in Los Angeles.
My neighborhood in Los Angeles 2/14/22
People have actually simply given up. pic.twitter.com/C0LA0jd2tn
— Colin Keating (@keating89_colin) February 14, 2022
Our major cities are becoming precisely what I warned they would become.
When upon a time, the U.S. had the biggest and most flourishing middle class that the world had ever seen.
But now that middle class is being absolutely eviscerated, and it is our own leaders that have done this to us.
With each passing day, more Americans are getting up and understanding what has happened, and anger is growing all over the country.
A lot of Americans had presumed that there would be endless success for numerous decades to come, but now it is becoming clear that the years ahead are going to be really, really awful.
*** It is lastly here! Michael’s new book entitled “7 Year Apocalypse” is now offered in paperbackand for the Kindleon Amazon. ***
About the Author: My name is Michael Snyder and my brand new book entitled “7 Year Armageddon”is now readily available on Amazon.com. In addition to my brand-new book I have written five other books that are offered on Amazon.comconsisting of “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, “Get Prepared Now”, and “Living A Life That Actually Matters”. (#CommissionsEarned) When you purchase any of these books you help to support the work that I am doing, and one manner in which you can truly assist is by sending digital copies as presentsthrough Amazon to family and friends. Time is brief, and I need assistance getting these cautions into the hands of as many individuals as possible. I have actually released thousands of articles on The Economic Collapse Blog, End Of The American Dreamand One Of The Most Crucial News, and the articles that I publish on those sites are republished on lots of other popular websites all over the globe. I always freely and gladly permit others to republish my short articles by themselves sites, however I likewise ask that they include this “About the Author” section with each short article. The product included in this article is for general details purposes only, and readers must consult certified specialists prior to making any legal, organization, financial or health choices. I motivate you to follow me on social media on Facebookand Twitter, and any way that you can share these short articles with others is an excellent help. These are such troubled times, and people require hope. John 3:16 tells us about the hope that God has actually provided us through Jesus Christ: “For God so liked the world, that he provided his only begotten Kid, that whosoever believeth in him must not perish, however have everlasting life.” If you have actually not currently done so, I highly urge you to ask Jesus to be your Lord and Savior today.