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Us - Consumer Credit Rises By Most In A Year

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http://www.nytimes.com/reuters/2013/07/08/business/08reuters-consumer-credit.html?ref=business

Consumer credit increased in May by the most in a year, a sign low borrowing costs were boosting economic growth although interest rates have since risen.

Total consumer installment credit advanced by $19.6 billion to $2.8 trillion, Federal Reserve data showed on Monday. Economists polled by Reuters had expected consumer credit to rise $12.5 billion during the month.

Consumer debts grew both for non-revolving credit, which includes loans for cars and college tuition, as well as for revolving facilities like credit cards. Overall consumer debt rose the most since May 2012.

The report does not cover borrowing for homes, which has grown considerably more expensive in recent weeks as Wall Street bets the Fed will ease its monetary support for the economy by the end of the year. Analysts worry a rapid rise in interest rates could deal a blow to the economy's slow recovery from the 2007-09 recession.

How exciting debt is increasing, I wonder if this is students pumping up the numbers or if consumers are seeking more debt?

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I think this is what's known as a 'breakout'. Truly awesome. How far can it go?

fredgraph.png?g=koY

Who knows? The Saviour State appears to be dying on its 4rse.

keynesian-multiplier7-13.jpg

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According to Denningers latest podcast US Federal Debt hit the debt ceiling a month ago and hasn't increased since. I assume this means tapering isnt just talk but has actually begun?

(i assume they create new govt debt in exchange for MBS's, but no new govt debt is being created)

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keynesian-multiplier7-13.jpg

Did Keynes advocate a perpetual multiplier or was it more of a short-term measure which would be withdrawn when economic recovery took hold and the state started to build up reserves to manage the next bust?

Although clearly how the policy has been implemented on that chart shows it's been a slight failure.

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Heard today on US news that there are more Americans recieving food stamps than there are private sector workers.

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  • 241 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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