Indebted US Consumers Losing Confidence
With debt up to his eyeball, the US consumer seems to be losing confidence in the US economy.
Last month, Spencer Schiff wrote an article warning about declining consumer confidence, writing, “any shift in consumer psychology/behavior could knock a critical support out from under our economy.”
In fact, consumer spending makes up about 70% of US GDP. If Americans stop shopping, the economy grinds to a halt.
Meanwhile, consumer debt continues to skyrocket. In effect, US consumers are propping up the US economy with money they don’t have.
Total consumer debt in the US now stands