This Number Is Trouble

It's time to grasp the size of this massive number [Total Wealth] BROUGHT TO YOU BY MANWARD PRESS This Number Is Trouble SPONSORED [The Final Piece of Nvidia's AI Puzzle]( [Missing piece of jigsaw puzzle]( Nvidia's Blackwell chip is set to redefine artificial intelligence, but it can't reach its full potential without one crucial component. That's where this secretive startup comes in. Their technology is the backbone of Blackwell's success, and as Nvidia aims for global AI dominance, this little-known company could be the key to unlocking untold riches. [Discover the hidden link in the AI supply chain.]( [Shah Gilani] Shah Gilani Chief Investment Strategist $1.142 trillion. That's a big number. And when numbers are that big... they lose all meaning. 1.142 trillion gallons of water would fill more than 1.7 million Olympic swimming pools. 1.142 trillion grains of sand would cover 4.5 square miles of beach. It would take more than 31,000 years for a person's heart to beat 1.142 trillion times. Like I said... a big number. And as of the second quarter of 2024, $1.142 trillion is the amount of U.S. credit card debt. That's the highest balance since tracking began in 1999... And it's trouble. SPONSORED [$4,000 in Value, YOURS FREE!]( The Oxford Club's reigning #1-ranked VIP trading research service beat the S&P's relative performance by 3-to-1 in 2023. This service remains red-hot, booking wins as high as 182% in 2.5 months... 275% in 3.5 months... and 386% in 2.5 months here in 2024. To celebrate this success, we're offering you a FREE bonus year - valued at $4,000 - if you're one of the first 75 to respond before midnight tonight. [Click here to see how to claim it asap.]( A Dramatic Rise The surge in credit card debt has been nothing short of dramatic. Since the first quarter of 2021, Americans have amassed an additional $372 billion in credit card debt. That's $215 billion higher than the previous record set in 2019. The average credit card debt per American adult now stands at $6,501. This growing burden is made worse by sky-high interest rates. The average credit card APR is a staggering 21.51%. Consumers increasingly rely on credit to finance their spending. We're entangled in a web of debt that will become increasingly sticky to manage. Right now, the delinquency rate for credit card payments is at 3.25%. That's up from 3.15% in the first quarter. It's is the highest delinquency rate since the fourth quarter of 2011. Clearly... as consumers take on more debt, it's getting harder to make timely payments. Rising delinquency rates are the canary in the coal mine. Consumers who struggle with debt are less likely to engage in discretionary spending. Given that this spending makes up two-thirds of our economy... growth will slow. But it's not just credit card debt that's a festering wound. 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There are increases across the board... - Average federal student loan debt stands at $37,853, up 2% over 2023 - The average personal loan debt per consumer was $19,402 in 2023, a 6.3% increase over 2022 - Average mortgage debt clocked in at $244,498 in 2023, up 5% over 2022 - Auto loan debt reached an average of $23,792 per consumer in 2023, up 5.2% over 2022. These figures paint a bleak picture of American consumer finances. If spending slows or hits a wall, the economy could follow suit, creating a vicious feedback loop. The Federal Reserve has attempted to mitigate economic downturns in the past by cutting interest rates to stimulate spending. That's one reason they just cut the fed funds rate 50 basis points. But in a landscape overrun with record consumer debt and rising interest rates, cuts may no longer be effective. If consumers are already maxed out on credit, lower rates may not translate into increased spending. Instead, consumers may prioritize paying down existing debt over new purchases, further slowing economic activity. With the average APR for credit cards now exceeding 21%, many consumers are likely to experience significant financial strain, limiting their willingness or ability to spend. In such a scenario, even aggressive monetary policy by the Fed may fail to stimulate the economy effectively. After all, it took years for consumer spending to come back after the Fed cut rates to near-zero after the 2008 Financial Crisis. The current state of consumer debt poses a significant risk to the broader economy. With credit card debt at an all-time high, rising delinquency rates, and a heavy burden of overall consumer debt, the foundations of economic growth are increasingly precarious. Should consumer spending hit a wall, the repercussions could be huge. We could see an economic downturn and market correction that the Fed will be powerless to fix. But we'll be prepared. Stay tuned, Shah Want more content like this? [YES]( [NO]( Shah Gilani Shah Gilani is the Chief Investment Strategist of Manward Press. Shah is a sought-after market commentator... a former hedge fund manager... and a veteran of the Chicago Board Options Exchange. He ran the futures and options division at the largest retail bank in Britain... and called the implosion of U.S. financial markets (AND the mega bull run that followed). Now at the helm of Manward, Shah is focused tightly on one goal: to do his part to make subscribers wealthier, happier and freer. You are receiving this email because you subscribed to Total Wealth. To unsubscribe from Total Wealth, [click here](. Need help with your account? [Click here](. Have a question or comment for the editor? [Click here](mailto:mailbag@manwardpress.com). Please do not reply to this email as it goes to an unmonitored inbox. 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