At first blush today's consumer credit report was simply gorgeous: an increase of $7.7 billion total on expectations of $7 billion. Just what the Keynesian voodoo doctor ordered right? Wrong. The problem is that of the $7.7 billion, just $0.3 billion was the "good" kind of credit - revolving. Everything else was either auto or student loan, or non-revolving credit. And what is worse, when looking at the breakdown (on a non seasonally adjusted basis), the monthly increase which was $4.2 billion was primarily a function of the now traditional ceaseless government lending, which rose by $3.8 billion, or 90% of the total. As can be seen on chart 3, since the start of the depression, government lending has grown by 317%, while private credit has declined by 16%. Central planning: from the government, by the government, for the government.
Monthly breakdown of credit:
Primary holders of credit:
And Big Brother's amazing lending track record:
