At FREEDOMGOFORTH, we do not claim to be financial experts. We are average Americans, just like you. However, like you, we have noticed that there is in our Nation today a financial pressure not before seen in our lifetime. What is being forced upon all of us is THE GREAT CREDIT CRUNCH. Even though the rate of inflation has been coming down from its high of over 9% just a few short months ago, it has not been brought down to the current government’s targeted value of 2%, and in fact has once again been on the increase the last two months. Mortgage rates hit 7.23% last month, “. . . the highest rate in more than two decades, according to Freddie Mac.” (forbes.com; September 25, 2023; Robin Rothstein.) “The average 30-year fixed increased slightly to 7.42 percent as of Sept. 20 . . .” (bankrate.com; September 20, 2023; Andrew Dehan). Earlier this week, we found loan rates varying from 8.6% up to 9.7% (bestmoney.com).
If you were looking to buy a house any time soon, you can expect to pay a lot more, not just each month, but in interest paid over the life of the loan. When the previous President left office, the inflation rate was 1.9%. Had you been able to obtain a loan at 3%, with no money down, your monthly loan payment (mortgage and interest on a 30-year fixed $400,000 loan) would have been $1,686.42. At today’s rates, using 7.42% referenced above, with the same constraints, your monthly payment will be $2,774.98, a monthly increase of $1,088.56, or $13,062.72 per year! Over the length of a 30 mortgage, you will have paid an additional $391,882.54 in interest ($598,992.35 – $207,109.81; nerdwallet.com.) Can you afford that with your current pay, with the increasing cost of fuel and food, with local taxes continuing to rise, with the value of the dollar in your pocket or purse worth less and less each and every month? In the last 50 years, the value of the dollar “. . . has declined by a whopping 86% to $0.14.” (finbold.com; March 21, 2022.) The value of the dollar has declined 16% since 2020 (in2013dollars.com).
Last week, our Nation past 33 TRILLION Dollar in Debt! Our National expenses this year will top 7 TRILLION Dollars, but only gathers through taxes 5 TRILLION Dollars per year. If we don’t put a stop to our out-of-control spending, our Nation will add an additional 2 TRILLION Dollars to our debt each and every year going forward. How much is your share? Try over $97,000 per person, and over $251,000 per household. If you consider total U.S. obligations, “unfunded liabilities”, you can increase those values to over $361,000 per person, and over $935,000 per household. What are “unfunded liabilities”? “Unfunded liabilities are debt obligations that do not have sufficient funds set aside to pay them. These liabilities generally refer to the U.S. government’s debts or pension plans and their impact on savings and investment securities.” (thebalancemoney.com.) Are you prepared to pay this debt off? Could you even pay this off in the next 5 or 10 years? Chances are your answer is, “No”. Are you prepared and willing to entrust this debt to your children and the prodigy of all current citizens? If you are, then we will be frank, you are morally bankrupt and irresponsible.
What really got us started thinking about THE GREAT CREDIT CRUNCH, was the simple fact that over the last couple of months, we have stopped getting mailings from credit agencies wanting us to get their cards. What’s up with the credit agencies? Well, they are in trouble. If you haven’t noticed, many citizens and businesses are finding their credit limits being drastically reduced. They will spout their standard mantra that your card may not have been used recently, or maybe your good credit got mixed up with someone with bad credit, or maybe your credit score was reduced because you have gotten into financial difficulty. The reality is that the credit card companies are trying to mitigate their risk, especially during a downturn in the economy. Inflation has driven up credit card debt by billions of dollars recently. “Newly released data from WalletHub says U.S. consumers took on $43 billion in additional credit card debt during the second quarter of this year, ending in June. That’s more than triple the average amount of new debt households have taken on in that period since after the Great Recession of 2007-08. Total credit card debt and debt per household grew by about 8% from the year before, according to WalletHub, a personal finance website.” (nbcnews.com; September 12, 2023; Marley Jay.) “Credit card losses are rising at the fastest pace since the Great Financial Crisis.” (cnbc.com; September 24, 2023; Michelle Fox.) “With interest rates going up, more consumers have missed payments on household debt.” “The increase in delinquencies and defaults is symptomatic of the tough decisions that these households are having to make right now – whether to pay their credit card bills, their rent or buy groceries . . .” The average credit card interest has now gone above 20% and will undoubtedly go higher. Auto loan delinquencies have increased from 2% to 3.5%, credit cards from 2% to nearly 4%, and consumer loans from 3 % to 5.5%. (wasingtonpost.com; “Delinquencies rise for credit cards and auto loans, and it could get worse“; August 30, 2023; Tory Newmyer, Aaron Gregg and Jaclyn Peiser.) It’s no wonder THE GREAT CREDIT CRUNCH is upon us. Credit card companies are facing losing billions of dollars due to delinquencies and defaults. “Almost 80% of Americans say they’re living paycheck to paycheck, according to a new survey by PayrollOrg.” “That’s 6% more than last year.” “More than a third of Americans have said they couldn’t afford to cover a $400 emergency . . .” “The PayrollOrg survey also shows that 34% of people would like to be able to access their wages earlier than their regular payday, an increase of 13% from 2022.” “. . . two-thirds of employees noting they’d have difficulty making ends meet if their next paycheck was delayed one week . . .” (investopedia.com; September 18, 2023; Erica Sweeney.)
Now, you have read the facts about THE GREAT CREDIT CRUNCH. You are in the middle of it. Only you can put a stop to it. Our FREEDOM and LIBERTY are on the precipice of being destroyed forever in our Nation. Contact your Congress Representatives and tell them to put a stop to their budget-busting, muscle-memory, automatic reflex, knee-jerk, lobbyist driven desire to spend more, be less accountable, and wallow in the filth of the lure of power and wealth in Washington D.C. Enough is enough! These who represent us in Congress are not spending their money, they’re spending OUR money, often on programs we did not ask for and do not want! It’s way too easy to spend someone else’s money, especially when one is not held accountable. Protect this land for those who follow us in life and stand with those who have gone on before us to set our Nation on a moral quest to be true patriots and defenders of the principals that have made our Nation and world a better place, where we serve our Creator, not any tyrannical government.