BIDEN’S CHICKENS COMING HOME TO ROOST: Consumer Credit Card Debt Unexpectedly Plummets At Rate Signaling Deep Recession.

We have repeatedly warned that with their savings – and especially “emergency covid savings” – gone or nearly gone, Biden admin savings data manipulation notwithstanding… US consumers had no choice but to max out their credit cards in order to “extend and pretend” their moment of purchasing greatness, or as we called one month ago, their last hurrah (see In “Last Hurrah”, Credit Card Debt Explodes Higher Despite Record High APRs As Savings Rate Craters), a hurrah that would last very briefly as it was only a matter of months if not weeks before said cards were denied.

Well, it appears that said denial hit much sooner than expected, and according to the Fed’s latest consumer credit data, in November consumer credit across US households tumbled by $7.5 billion to $5.102 trillion, a 1.8% annual rate of contraction and usually something one only sees in the middle of recessions (or worse).

What is remarkable is that as shown on the chart above, while non-revolving debt (i.e. student and auto loans) rose modestly, it was revolving, or credit card debt, that cratered by a whopping $13.8 billion the biggest drop since the covid crash shut down the economy and the prospect of future income for millions of Americans (hence the collapse in spending). In fact, it is safe to say that any and every time revolving credit has collapsed this much, the US was on the cusp of, if not already in a recession.

We’ve been in a jobs recession for years, something the Biden cabal papered over with massive federal spending and data manipulation.

But even multitrillion-dollar deficits and a partisan bureaucracy can paper over only so much.