Federal Reserve Responsibility For Consumer And Government Debt Crises

According to the Federal Reserve, credit card delinquencies increased by 50 percent in 2023, while consumer debt grew to 17.5 trillion dollars.

A recent survey by Clever Real Estate found that three in five Americans have credit card debt and that 23 percent of Americans increase their credit card debt every month.

The overreliance on credit cards and the accompanying increase in consumer debt are consequences of our fiat money system.

Since Richard Nixon severed the last link between the dollar and gold in August of 1971, the dollar's value has declined by 87 percent based on the government's understated Consumer Price Index numbers.

Congress could help protect Americans from the inflation tax by forbidding the Federal Reserve from purchasing government debt instruments such as Treasury securities.

The reliance of so many Americans on credit cards for basic necessities is one reason why many Americans are dissatisfied with the economy.

The large amount of consumer debt is also a reason the Federal Reserve will not increase interest rates to anywhere near what they would be in a free market. 

https://ronpaulinstitute.org/federal-reserve-responsibility-for-consumer-and-government-debt-crises/