(Zero Hedge)—At a time when conventional media “wisdom” claims that US consumers are panicking ahead of a looming recession and aggressively reducing their spending, moments ago we got the latest consumer credit data from the Fed which confirmed none of that. In fact, one month after consumer credit came in line with expectations, the latest update of the Fed’s G 98 statement showed that in April, consumer credit growth more than doubled, from a revised $8.6 billion to $17.9 billion, the single biggest monthly increase of 2025 and the second highest going back to November 2023. In other words, far from being concerned about a recession, the US consumer is doing what they do best: spend.
The composition was familiar: revolving credit (i.e., credit card debt) rose by $7.6BN, much more than the $1.7BN increase in March and the highest since December.
Meanwhile, non-revolving credit jumped by $8.3 billion, the second highest monthly increase since June 2023.
Why? Well, the answer is rather bizarre because while auto loans shrank by $10 billion in Q1, the biggest quarterly decline in a decade, it was student debt, that debt which is now causing widespread defaults as millions can not afford to pay it as the moratorium is over, that unexpectedly surged by $22BN in Q1 to $1,797 billion, a new all time high.
And as an aside, for those asking whether the recent Fed rate cuts have translated into lower interest APRs on credit cards, the answer is in the next chart. Unfortunately, the answer is no, because as we said back in September while the Fed is slashing rates, none of this is translating into lower rates on consumer liabilities.
So how realistic is it that in a time when millions of former “students” are about to start defaulting en masse, that it is student loans which are again propelling consumer spending, we keep a close eye on this series because while many expect that the student loan bubble bursting will accelerate the recession, we may be getting just the opposite as Trump takes another page from the Biden playbook and starts firehosing “student” loans to anyone with a pulse who can fog a mirror.
At Last, a Company With Integrity in the Gold IRA Industry
For several years, I’ve been vetting out precious metals companies in search of the best. I believe in gold and silver but it’s hard to find integrity in the Gold IRA industry. The vast majority operate with shady tactics and gigantic spreads that take advantage of Americans who simply want to protect their life’s savings.
I’ve found a handful that I like and I’ve worked with some of them. By no means would I “unrecommend” them because, again, I vetted them out and found them to be above the fold. Unfortunately, it isn’t hard to be better than the rest when the rest are so darn awful.
After years of searching, I finally found a company that truly operates with integrity. Augusta Precious Metals has three important attributes that set them far above the competition:
- Non-Commissioned Sales Team: I cannot stress how important and unique this is. With just about every other company in the Gold IRA industry, the sales teams make commission from every account they open. This means they steer their clients toward the gold and silver products with the highest commission. With Augusta Precious Metals, the team is solely focused on putting the best gold and silver for their clients into their IRA. They get paid to serve the best interests of the Gold IRA client, NOT their own commission pay.
- Incredibly Low Fees: Most Americans would be shocked if they knew the spread other Gold IRA companies charge. Augusta charges just 5% versus up to 45% elsewhere.
- No Pressure, No Gimmicks: There’s an understanding among most in the Gold IRA industry that fear and pressure is the way to go. Augusta Precious Metals takes a sober approach when working with clients because they hold integrity in the highest possible regard. This is why they don’t offer gimmicks like “free” or “bonus” silver. It’s also why they do not apply pressure tactics to get quick sales. Their educational and transparent approach to doing business is exceedingly rare in the Gold IRA industry.
student usury is the correct term. there are no jobs to acquire to pay back the slave loans.
This all goes back to the Department of Education that began dumbing down American youth. How else can you explain securing student loans for a “degree” in Women’s Studies, or Black History, or a myriad of other entirely worthless “degrees”?
LENDING CREDIT AT INTEREST IS FRAUD NOT USURY.