U.S. consumer credit-card debt just passed an ominous milestone, beating a record set just before the global financial system almost collapsed in 2008.
Outstanding card loans reached $1.02 trillion in June, data from the Federal Reserve show, as lenders including Citigroup Inc. and JPMorgan Chase & Co. compete to sign up cardholders who may carry balances — a relatively lucrative business in a prolonged period of low interest rates…
In 2008, a drop in home prices spiraled into a global financial meltdown, and after the jobless rate surged toward 10 percent, banks wrote off more than $100 billion in credit-card loans over the next two years.
I am always on the lookout for objective proxies that can be used to measure amygdala, in the hopes they can one day be used to predict what is coming. All of the K-shift is merely amygdala coming online, so anything which is activating that amygdala and exercising it, is probably driving the overall psychology toward K.
Credit card debt is probably a good measure of societal stress, which will itself build amygdala. If people are building that credit card debt, they are initially enjoying the dopamine from the resource expenditure. But as that debt builds, then comes the stress and the sinecure lifestyle which will produce K. The higher the debt goes, the more the K is building. And the more the K is building in a period of r, the more the sudden switch to K is likely to hit, and trigger a collapse of the euphoria that fuels the silliness and irresponsibility of r.
It isn’t black and white, or a simple one-facet measure, since debt mixes the pleasure of spending with the stress of shortage. But paying off credit card debt will tend to occur due to increasing resource availability (and that will increase r), or it can be due to K-increasing sufficiently enough to drive a more forward-looking psychology that prioritizes responsibility over pleasure. But even that will produce increased security and that increased security will also fuel r.
So as the Trump economic boom takes off, that high debt can probably exist with a higher level of resource availability that will r-ify the population somewhat, but that increasing r will tend to accompany a diminishing credit card debt if the boom is sufficient to be an Apocalypse killer. Likewise, if the society K-ifies enough, then it will pay off the credit card debt, and that will r-ifiy the populace as well. But in both cases, that debt being paid off will indicate increasing r, either due to freer resource availability due to the environment changing, or due to the psychology being sufficiently K enough to allow some relief from the strain – and consequent shift toward r.
So diminishing credit card debt is probably a sign of increasing r, while increasing credit card debt is a sign of increasing K. When you have record credit card debt (which makes it difficult to pay down), and it is still increasing, I would assume that is a sign of peak r’s approach, and a sudden K-shift at some point.
I watch for this, because once that K is triggered, it will manifest everywhere else as well, from stock market investment, to loaning money, to triggering wars and changing the social aspects of society. It could, if everything is precarious enough, trigger Apocalypse.
What we have here is another sign of the approaching shift. We are seeing little signs of it here and there, but this would indicate the big shift is still on its way, and given all the interlinked weak points, it may be a doozy.
Truth be told, we need it.