Oh “Good” – Credit Card Debt Just Jumped
You gotta love mainstream, that is to say, Keynesian, media coverage. Credit card debt just jumped substantially last month and Reuters spins it as good economic news.
Perhaps consumer debt is not a good thing. Perhaps it’s better for people to pay down their credit cards, save money and invest it. Perhaps people are borrowing more because real wages are falling, and they’re trying to maintain their standard of living trough plastic. Perhaps a jump start in consumer borrowing means that some of that excess money which the Fed has created will come out and play, circulate through the credit markets, and lead to price inflation.
After all, more money being spent on consumer goods is, by definition, an increase in demand, and doesn’t supply and demand drive consumer prices?