- Jun 29, 2013
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USA Hyper-Inflation – 157% in Past 3 Years
(Dreamstime)
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This week, there are now more CEO’s saying that lending rates could get even worse and go up to new 40-year highs not seen since the Jimmy Carter debacle and Reagan’s landslide election of 1980.The intersection of hyperinflation and escalating interest rates on various types of loans has disproportionately affected women and minorities, exacerbating existing economic disparities. The weak energy policies, increased fuel prices, and skyrocketing food prices have only become more harsh wiping out savings and discretionary income for working families according to the IMF.
The surge in inflation coupled with soaring interest rates has created a formidable financial burden, particularly evident in the realms of home loans, auto loans, student loans, and credit cards.
To illustrate, the average interest rate on a 30-year fixed-rate mortgage has skyrocketed by approximately 157.41% since January 2021, reaching 6.95% in March 2024. Other loan and bank products such as credit cards, student loans, and auto loans went up in a devastating fashion which continually injures working families.
Here are the 3-Year Changes of Costs for various types of loans:
- Credit Cards APR: 19%-29% Lending Rates Worse by 42.3%
- Credit cards often charge higher interest rates than other loan products. Right now, most women and minorities are paying between 19 and 29% interest rates which kills savings, spending, and investing. These are loan shark style rates inflicted upon working families by government and banks.
- Average APR in 2020:
o In 2020, the average annual percentage rate (APR) for new credit card offers
in the U.S. was 14.71% - Average APR in 2023:
- As of Q3 2023, the average APR for new credit card offers stood at 20.93% but is generally around 24-25% for most.
- Student Loans Loan Rates also Double over 100% in Costs
- Federal student loan interest rates are up over 100% in 3 years.
- Rates vary based on the type of loan. For loans disbursed between July 1, 2023, and June 30, 2024: Presently, the average rate is over 9% which is up over 100% in the last 3 years.
Thus, 43 million families with overpriced student debt are paying double the interest since President Trump left office.
- Auto Loans APR and Loans up 94.8% -
Auto loan interest rates depend on factors like credit score and lender. On average: New Cars: Around 7.1% APR and Used Cars: Around 11.6% APR
Therefore, the average auto loan rate hits working folks with a 94.81% percent higher punishment in costs over the last three years.
- Home Mortgage 30-Year Rates up 157% in 3 Years
- As of now, the average interest rate for a 30-year fixed mortgage is approximately 6.95% according to the St. Louis Federal Reserve. Keep in mind that mortgage rates can get worse, and the 30 year loan rate costs are directly passed on to renters creating rental hyperinflation.
- January 2021: The average interest rate was a record low of 2.7%
- October 2022: The rate surged to a high of 7.08%
- Current Rate (March 2024): The average rate stands at 6.95%
- Rent Costs 270% More Compared to Wages
- Rent Costs - Rental prices hikes got much worse beating and surpassing annual wage increases by 270%.
- Last year, many cities had a 30% Rent increase in year 2023 pummeling inner city minorities and youth.
- Small Business Lines of Credit Interest Rates up over 100%
Overall, this painful economic landscape not only complicates the path to renting or homeownership but also adds strain to managing existing debts, hindering financial stability among marginalized and ethnic communities.
As 2024 interest rates climb to loan shark rates, the accessibility of credit diminishes, perpetuating cycles of financial exclusion and widening the economic gaps for working folks who also already pay an outrageous totality of rates for sales tax, federal income tax, entertainment taxes, internet taxes, cell phone taxes, auto taxes, luxury taxes, real estate taxes, cable TV taxes, and local income taxes.
Furthermore, analysis suggests that nobody would even need student debt relief if the government had not intentionally raised lending rates on working families with debt by a staggering 100% on most loans.
All of this unnecessary calamity upon workers is occurring while many on public assistance receive tax free housing, food, and health care and do not feel any of the suffocating effects of hyperinflation with higher: rent costs, loan repayments, food costs, insurance costs, or health care costs.
In this volatile financial climate, it becomes imperative to address the disproportionate impact of hyperinflation, escalating interest rates, and rental costs on working families, women, children, and minorities.
To make a long story short, the math does not lie. According to the US Federal Courts, Business bankruptcy filings rose 40.4 percent, from 13,481 to 18,926, in 2023 .
This alone shows the effect of bad policies while millions of workers continue to struggle and run up credit card debt to a record $1.1 trillion. In the most recent inflation survey by Northwestern Mutual Life, Americans believe they need 53% more money to retire than they did just a mere 3 years ago. This data clearly shows that hyperinflation is seen by Americans as a 50% increase in the cost of living over the last 3 years which is destroying the middle class and working families.
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Read Newsmax: USA Hyper-Inflation – 157% in Past 3 Years | Newsmax.com
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