12 July 2006

On the Plantation, Credit Card Debt Continues to Explode

On Tuesday, Bloomberg reported this news - good for Uncle Sam's blood-money financiers and vampire capitalists pulling in unearned weath by the truckload on interest and fees but crippling to those living from hand-to-mouth, struggling to pay the bills on the Plantation:
Borrowing by consumers rose in May for the seventh consecutive month as credit card and other types of revolving debt jumped by the most since October 2004, the Federal Reserve reported yesterday.

Consumer credit, or nonmortgage loans to individuals, rose $4.4 billion, or 2.5 percent at an annual rate, to $2.174 trillion.

The figures suggest that Americans are using their credit cards to finance more purchases as rising interest rates and slowing increases in real estate values discourage borrowing against home equity...

Revolving debt, which includes credit cards, rose $6.7 billion for the month, a 9.9 percent gain at an annual rate.
When the talking heads and government propagandists speak about the debt and the deficit on the air, they never mention this $2,000,000,000,000. Nor do they address the other types of debt that many households have taken on - often in the form of home mortgages and/or the myriad home-equity debt-leverage loan scams.

Since this type of debt effects the working class, to these talking heads this type of debt isn't real. Which explains why on a day when this news appears, rather than treat President BringItOn as a laughingstock when he speaks orgiastically about Uncle Sam's federal deficit of only $300,000,000,000, the cable networks report it as though it were a serious story with some bearing on the real world.

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