Gas Up, Retail Sales Down, Consumer Debt Up
These seemingly isolated news events hint at something ominous lurking just around the corner. We would expect that as gas goes up, consumers might begin to spend less at places like Wal-Mart. That piece appears logical. We have to get to work, get the kids to school, and all of the other activities that require a car, right? So if the cost of running around continues to climb, we find ourselves cutting back a little at the local Wally World.
But then we come to the next item. Consumer debt continues to increase. Why? Well, let me suggest to you that this one headline points to a coming problem. You see, if we are not spending more on trinkets, then it appears that consumers are borrowing on their credit cards to make house payments and purchase food to eat.
That indicates a scary scenario on the horizon, because you can only borrow so much. Unlike the government, which can pretty much create more money whenever they need it, the credit card companies will only loan us so much and after that the game is over.
Now I know that if you are like me, you continue to receive more and more credit card offers in the mail and you may think that it will continue forever, but once you are late on a card, the offers dry up and so do the approvals.
I’ve been through it personally and I know. When the party ends, it usually ends badly, and the hangover lasts for years.
What can you do?
Well, if you have read my special report, “5 Things You Must Do Now To Protect Your Investments,” then I encourage you to dig that report out and read it again and then after reading it, take action.
If you haven’t read it or can’t find your copy, then visit the web site below and sign up to get an updated copy. I have expanded and revised the report and it now comes to your email box over a 5-day period.
Or if you are in a hurry and believe me, you should be in a hurry. You can get the entire report in an easy to print, easy to read, PDF report. Just visit the web site below and follow the instructions there.
The most reliable indicator in history is now flashing the recession warning for later this year. The probability is near 100%. Don’t delay; your entire financial future is riding on what you do in the coming days or weeks.
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