Recession Watch: Are Americans Close to Hitting Credit Card Limits?

(Mike Maharrey, Money Metals News Service) With American consumers using credit cards to make ends meet month after month, and interest rates well over 20 percent, it’s only a matter of time before the spending spree comes to an end. After all, credit cards have this inconvenient thing called a limit.

And there are increasing signs that the American consumer may be near the end of that proverbial rope.

Credit card spending has generally declined for several months, and it fell off a cliff in November, according to the latest data from the Federal Reserve.

Consumer debt plunged by $7.5 billion in November, driven by a 12 percent drop in revolving credit – primarily made up of credit card balances.

Big drops in consumer debt often signal the early stages of a recession.

Despite the decline, Americans are still buried under over $5.1 trillion in consumer debt.

The Federal Reserve consumer debt figures include credit card debt, student loans, and auto loans but do not factor in mortgage debt. When you include mortgages, U.S. households are buried under a record level of debt. As of the end of the third quarter, total household debt stood at $17.94 trillion.

A Worrisome Trend

The sustained increase in credit card borrowing that began in May 2021, suddenly slowed in March of last year. Since then, we’ve seen revolving credit moving erratically up and down. Borrowing tanked in April, June, and August, and it was tepid again in September. There was a surge in borrowing in October, but it appears that was an outlier. The trend is a contraction in borrowing.

This is really bad news for an economy that depends on people buying stuff to keep limping along.

Revolving credit dropped by $13.7 billion in November. It was the biggest decline since early in the pandemic. This underscores the fact that credit card spending tends to plunge during a recession.

Americans currently owe $1.36 trillion in revolving debt.

The double whammy of rising debt and interest rates exacerbates the debt problem. The average annual percentage rate (APR) currently stands at 20.15 percent, with some companies charging rates as high as 28 percent. That’s only slightly down from the record high of 20.79 percent set in August.

Rates aren’t coming down much even with Federal Reserve rate cuts. According to an ABC News report, despite a full percentage point in rate cuts, credit card companies are charging a higher margin “to weather default risk, cover overhead costs and recoup profits, experts added.”

“Credit card rates are high, and they’re staying high,” Bankrate analyst Ted Rossman told ABC News.

And as Bloomberg noted, the central bank has indicated a slower pace of cuts in 2025.

“That means Americans will find only modest relief from high rates on credit-card accounts and other forms of borrowing.”

High credit card balances coupled with high interest rates are beginning to squeeze consumers, particularly those in lower income brackets.

According to New York Fed Q3 data, “Aggregate delinquency rates edged up from the previous quarter, with 3.5 percent of outstanding debt in some stage of delinquency.” It characterized delinquency rates as “elevated.”

Subprime credit card borrowers are struggling the most, with delinquency rates nudging upward by about 5.6 percent since the Federal Reserve began raising rates to battle price inflation.

Non-revolving debt, primarily reflecting outstanding auto loans, student loans, and loans for other big-ticket durable goods, increased by 2 percent in November. Non-revolving debt rose at a relatively tepid pace of under 2 percent for most of the year as consumers cut back on big-ticket spending to cover the increasing costs of day-to-day necessities.

Recession Warning Sign?

Historically, significant declines in revolving credit have indicated the U.S. economy is either on the brink of a recession or is already in the early stages of one.

Credit card spending is known as “forward consumption.” In other words, people use credit to buy things they can’t afford today, expecting that they will be able to pay it off over time in the future.

When consumers are concerned about their future economic prospects, they tend to roll back “forward consumption.” In effect, they hunker down to weather the coming economic storm.

The surge in credit card spending right after the pandemic was likely driven by optimism as the economy came out of lockdown. Americans spent the pandemic months saving and paying down debt. This was facilitated by multiple rounds of stimulus money.

But the picture was muddied by inflation. As prices began to rise, consumers were forced to turn to credit cards in order to make ends meet. Citigroup noted a shift in spending patterns as more consumers used credit cards to pay for “basic needs.” Analysts also noted a significant slowdown in “non-vital” purchases.

This slowdown was reflected in the ebbing growth of non-revolving credit.

In other words, credit card spending in recent months wasn’t so much about economic optimism and “forward consumption. People were using credit cards with 28 percent interest rates to pay for groceries.

But as already mentioned, credit cards have a limit and it appears that Americans might be getting close to being tapped out. Credit card spending is trending downward. This could be a sign that the “soft landing” narrative is a myth.

‘Nailed to the Wall’: Ron DeSantis Slams Media for Protecting Leftist Leaders Who Enabled California Fires

(Julianna Frieman, Headline USA) Gov. Ron DeSantis, R-Fla., slammed the media Thursday night for protecting California’s political leaders who enabled the state’s raging wildfires.

With a Democrat governor who shifted responsibility to locals to solve the drought of water in fire hydrants, a Los Angeles mayor traveling abroad to Africa and a lesbian fire chief prioritizing diversity hires, California remained swallowed by flames early Friday.

DeSantis blasted a reporter for questioning President-elect Donald Trump’s criticism of California Gov. Gavin Newsom, pointing out that if the Democrat were a Republican, he would be “nailed to the wall.”

“Is it appropriate for people in your industry to try to create division and try to create narratives anytime these things happen?” DeSantis said outside a meeting between Trump and GOP governors. “If Newsom was a Republican, you guys would have him nailed to the wall for what they’re doing over there.”

Trump pounded “Gavin Newscum” on Truth Social during the days–long fires, blaming leftist environmental policies that prioritized saving a small fish called “the smelt” over providing adequate water to human beings.

DeSantis told reporters, “So you guys sitting in judgment of Donald Trump, I mean, excuse me, I think your track record of politicizing these things is very, very bad.”

On Thursday, a California woman was caught on video confronting Newsom about his state’s wildfires. She pressed him repeatedly as to why fire hydrants were empty, telling him she would fill up the fire hydrants herself.

When Newsom told the distressed woman he would do all he can to fix the disaster, she cried out, “But you’re not!”

Friday morning on Fox and Friends, DeSantis, who previously made national headlines for his strong hurricane and disaster relief efforts, announced he tasked the Florida Division of Emergency Management to get prepared to help California recover from the wildfires.

“As there’s requests that come down the pike, we will fulfill those requests,” the Florida governor said.

Julianna Frieman is a freelance writer published by the Daily Caller, Headline USA, The Federalist, and the American Spectator. Follow her on Twitter at @JuliannaFrieman.

Gay Facebook Employees Seething over Mark Zuckerberg’s Pro-Free Speech Changes

(Ken Silva, Headline USA) Employees of Facebook’s parent company, Meta, are reportedly rebelling against CEO Mark Zuckerberg’s decision to get rid of its politically biased fact-checker and make other content moderation modifications.

According to the tech publication 404 Media, one of Zuckerberg’s changes is to allow Facebook users to say that “LGBTQ+ people have mental illness.” That change apparently didn’t sit well with Meta’s queer employees.

404 Media interviewed five anonymous Meta employees who said they’re “furious” with the changes.

“It’s total chaos internally at Meta right now,” one current employee told 404 Media.

“The entire thread of comments shared is dissent toward the new policy, save for one leader repeating Zuckerberg talking points. I’d call the mood shock and disbelief. It’s embarrassment and shame that feels self-inflicted, different than mistakes the company has made in the past,” the employee reportedly added.

“No one is excited or happy about these changes. And obviously the employees who identify as being part of the LGBTQ+ community are especially unhappy and feel the most unsupported in this,” another employee told 404 Media. “A small number of people are taking time off and are sharing that they are considering leaving the company due to this change.”

The dissent is spilling out in internal Meta chatgroups. One employee reportedly wrote that they needed time off because they’re gay—and therefore mentally ill.

“I am LGBT and Mentally Ill,” the employee posted on an internal Meta platform called Workplace this week, according to 404 Media. “Just to let you know that I’ll be taking time out to look after my mental health.”

Meta didn’t respond to 404 Media’s questions about the matter.

In doing away with its fact-checking regime, Meta said this week that the program was “well-intentioned at the outset,” according to Meta Chief Global Affairs Officer Joel Kaplan, but “too much political bias” infiltrated the scrapped system.

“If you can say it on TV, you can say it on the floor of Congress, you certainly ought to be able to say it on Facebook and Instagram,” the Meta executive added.

Meta’s departure from censorship came after a two-year Facebook and Instagram ban was imposed on Trump following the 2020 election.

The company lifted Trump’s ban ahead of the Republican Party convention in 2023, stating, “we don’t want to get in the way of open, public and democratic debate on Meta’s platforms—especially in the context of elections in democratic societies like the United States.”

Ken Silva is a staff writer at Headline USA. Follow him at x.com/jd_cashless.

‘Trouble in Paradise’: Are Barack and Michelle Obama on the Outs?

(Julianna Frieman, Headline USA) Fox News host Jesse Watters speculated Thursday that former President Barack Obama and his wife, Michelle, could have marital troubles after the former first lady failed to attend a presidential funeral.

Obama, who was seen smiling and laughing in his seat next to President-elect Donald Trump, noticeably attended former President Jimmy Carter’s funeral solo as other president were joined by their wives.

On The Five, Watters suggested that Michelle Obama’s absence could have been a result of a surgery or an upcoming divorce, going beyond believing the “scheduling conflict” excuse CNN reported earlier.

“President dies, everyone in the world shows up, and she doesn’t break her vacation?” Watters asked, referencing reports that the former first lady could not make it from her Hawaii vacation. “It’s not like she doesn’t have access to a jet. Something is going on. Let’s speculate.”

Fox News personality Greg Gutfeld encourage his co-host by saying, “Yes, please!”

Watters went on to say, “It’s either surgery,” eliciting gasps from panelists who he told, “That was my least controversial thing.”

He continued by suggesting that Michelle Obama might not want to sit next to “dictator” Trump, referencing a repeated Democrat talking point used against the Republican on the campaign trail. Watters cheekily commented, “And by that I don’t mean Hillary, I mean Donald Trump.”

“Or there’s trouble in paradise between Barack and Michelle. I’ve heard things, I’m not gonna substantiate that by repeating these rumors on national TV like I just did. But I’m just saying, it’s very odd that she’s not there,” Watters said.

Gutfeld jumped in by adding, “We should ask Mike” about Michelle Obama’s whereabouts.

He quickly clarified that “Mike” was a “buddy” of his from the Fox News green room.

The Five co-host Dana Perino name-dropped Mike Emmanuel, and Gutfeld said , “He’s on top of things all the time.” He added, “Sometimes we need to pull him off of these things.”

Julianna Frieman is a freelance writer published by the Daily Caller, Headline USA, The Federalist, and the American Spectator. Follow her on Twitter at @JuliannaFrieman.

Report: DOGE Already Sending Agents to Federal Departments to Prep for Deep Cuts

(Ken Silva, Headline USA) The Washington Post reported Friday that representatives from Elon Musk’s nescient Department of Government Efficiency are already visiting government agencies ahead of President-elect Donald Trump’s inauguration.

DOGE is an initiative that aims to cut some $2 trillion from the federal government, though Musk admitted on Wednesday that’s unlikely. Nevertheless, his peons are making early visits to more than a dozen federal agencies, according to the Post.

Agencies visited by DOGE so far include the Treasury Department, the Internal Revenue Service and the departments of Homeland Security, Veterans Affairs, and Health and Human Services, the Post reported, citing four people familiar with the matter.

“At the same time, Musk and Ramaswamy have significantly stepped up hiring for their new entity, with more than 50 staffers already working out of the offices of SpaceX, Musk’s rocket-building company, in downtown Washington,” the Post reported.

Federal bureaucrats apparently aren’t taking the DOGE visits well.

“Two government employees said remarks Musk and Ramaswamy have made about the civil service have made them wary of the entire DOGE effort. Longtime civil servants — some who have built their careers learning the intricacies of the federal bureaucracy — are an awkward fit with Silicon Valley’s fast-moving and disruptive culture,” the Post reported.

“Many in Washington regard the tech entrepreneurs as arrogant or naive about the complexity of reining in government.”

The Post added that DOGE is also encountering a reluctance among congressional Republicans to approve deep budget cuts.

It’s not clear what impact DOGE will have, as it holds no constitutional or legal authority. As the Post noted, it’s unclear who is paying the salaries of DOGE staffers or exactly how they work with Trump’s formal transition team.

Musk reportedly remains optimistic.

“I think we’ll try for $2 trillion. I think that’s like the best-case outcome,” he reportedly said Wednesday. “But I do think that you kind of have to have some overage. I think if we try for $2 trillion, we’ve got a good shot at getting $1 [trillion].”

Ken Silva is a staff writer at Headline USA. Follow him at x.com/jd_cashless.

Legislation Introduced in Virginia to Keep Gold and Silver Tax Free

(Jp Cortez, Money Metals News Service) Virginia currently exempts precious metals purchases from state sales tax, however, this exemption is set to expire in June of this year. House Bill 2336 aims to extend the current law on gold and silver.

Introduced by 2022’s “Sound Money Legislator of the Year” Del. Amanda Batten (96-R), House Bill 2336 would maintain current law by extending the existing sales tax exemption on the purchases of precious metals purchases until 2032.

If this measure fails, and this exemption is therefore allowed to expire, Virginia citizens seeking to protect their savings against the devaluation of the dollar would be immediately harmed – not to mention an entire industry of small precious metals dealers that would be worse off.

House Bill 2336, which would extend the Virginia sales tax exemption on the monetary metals to 2032, should be approved for several reasons:

  • Levying sales taxes on precious metals is inappropriate. Sales taxes are typically levied on final consumer goods. Computers, shirts, and shoes carry sales taxes because the consumer is “consuming” the good. Precious metals are inherently held for resale, not “consumption,” making the application of sales taxes on precious metals inappropriate.
  • Studies have shown that taxing precious metals is an inefficient form of revenue collection. The results of one study involving Michigan show that any sales tax proceeds a state collects on precious metals are likely surpassed by the state revenue lost from conventions, businesses, and economic activity that are driven out of the state.

The harm is exacerbated when you consider that many of Virginia’s neighbors (Maryland, West Virginia, Tennessee, and North Carolina) have already stopped taxing gold and silver. 45 states have now fully or partially ended this tax.

  • Taxing gold and silver harms in-state businesses. It’s a competitive marketplace, so buyers will take their business to neighboring states, such as Tennessee, West Virginia, and North Carolina (which have eliminated or reduced sales tax on precious metals), thereby undermining Virginia jobs. Levying sales tax on precious metals harms in-state businesses who will lose business to out-of-state precious metals dealers. Investors in Richmond can easily avoid paying $120.40 in sales taxes, for example, on a $2,800 purchase of a one-ounce gold bar.
  • Taxing precious metals is unfair to certain savers and investors. Gold and silver are held as forms of savings and investment. Virginia does not tax the purchase of stocks, bonds, ETFs, currencies, and other financial instruments.
  • Taxing precious metals is harmful to citizens attempting to protect their assets. Purchasers of precious metals aren’t fat-cat investors. Most who buy precious metals do so in small increments as a way of saving money. Precious metals investors are purchasing precious metals as a way to preserve their wealth against the damages of inflation. Inflation harms the poorest among us, including pensioners, Virginians on fixed incomes, wage earners, savers, and more.

In 2016, the state of Louisiana experimented briefly with slapping sales taxes on precious metals purchases. The state quickly reversed course only one year later — and reinstated the exemption on precious metals — because businesses, coin conventions, and state tax revenues were leaving the state.

The Sound Money Defense League strongly supports and is actively working with lawmakers in Virginia to ensure passage of this important measure.

Img credit: Nicolas Raymond/Flickr

Sound-Money Advocates in Wyo. Introduce Bill to Create Gold Reserve

(Jp Cortez, Money Metals News Service) Lawmakers in Wyoming have introduced legislation today to create the “Wyoming Gold Reserve.”

Introduced by sound money champion Senator Bob Ide (R-Casper), Senate File 96 amends and further implements the Wyoming Legal Tender Act, a popular 2018 law that had removed all tax liability from gold and silver transactions and affirmed that the monetary metals are legal tender in Wyoming.

Senate File 96 prompts the Wyoming state treasurer to hold “not less than ten million dollars ($10,000,000) in specie and specie legal tender between and across all state managed accounts…”

The bill calls for the state to hold gold as an asset to help the Cowboy State hedge against its high exposure to Federal Reserve note dollars and potentially invest in precious metals leases and bonds if market conditions warrant.

According to Sen. Ide, “Wyoming doesn’t own a single ounce of gold, putting our state’s finances and citizens at risk. International countries’ central banks all over the world, and even neighboring Utah and other states across the U.S., have started to seek alternatives to the U.S. Dollar. Gold and silver have been a reliable store of value for thousands of years.”

The legislation grants the treasurer authority over contracting for services with established firms and experts to assist with the duties and requires financial disclosures along with any other requirements specified by law.

Additionally, the bill calls for the state treasurer to “conduct a study analyzing the role of precious metals in augmenting, stabilizing and ensuring the economic security and prosperity of the state and the families, residents, and businesses of the state.”

The study explicitly includes “a review of methods for the state to begin accepting gold and silver as a payment medium.”

Results of the study shall be submitted to the joint revenue interim committee and select committee on financing and investments not later than Oct 1, 2025.

Wyoming is one of several states expected to introduce legislation regarding gold reserves in 2025. Tennessee and Utah recently passed similar measures, and this week, New Hampshire introduced House Bill 302, a bill that allows the state treasurer to invest up to 10% of the total amount of public funds in gold, silver, platinum, and some digital currencies.

Img credit: Skunkcrew/Wikimedia Commons


Jp Cortez is the Executive Director of the Sound Money Defense League, an organization working to remonetize gold and silver through nationwide legislative efforts. He is a graduate of Auburn University and a resident of Charlotte, North Carolina. Follow him on X (Twitter) @JpCortez27.

‘Disinformation’: Trudeau Offers Laughable Justification for Ouster 

(Luis Cornelio, Headline USA) Canadian Prime Minister Justin Trudeau blamed “right-wing attacks” and “disinformation” on Thursday as the main causes behind his long-awaited resignation. 

Trudeau announced Monday that he would step down as the Liberal Party leader, caving to pressure from his party amid growing dissatisfaction among Canadians over inflation and immigration. 

However, during an interview with CNN’s Jake Tapper on The Lead about his politically devastating poll numbers, Trudeau blamed everyone else but himself for his fall from grace

“When you get a con—you know, I was going to say conflagration—but at least an intersection of both right-wing attacks and social media, you end up with a lot of misinformation, disinformation,” Trudeau claimed. 

“Responsible governments have to stay focused on the policies that are making a difference. And that’s what we’ve been doing,” he added. 

Trudeau’s comments followed a lengthy and incoherent response to Tapper’s question about Canadian and American voters delivering a blunt verdict against leftist governance.  

Tapper noted that Canadians are concerned about high inflation, the overall economy and immigration.  

Drawing parallels with America, he added, “Those are also issues that the left-wing party in this country has faced a lot of disapproval. … It seems like voters in both of these liberal democracies are sending a message to left-wing parties, liberal parties: ‘We don’t like how you’re doing the economy when it comes to inflation. We don’t like how you’re doing immigration.’” 

Trudeau dismissed these concerns in response, claiming the polls were driven by “a lot of emotions.” 

“I mean, if you look at the actual numbers, inflation in Canada was lower, came down quicker,” he said. Later, Trudeau expanded, “Our economy is doing very well, but when someone is paying $8 for a head of lettuce, it doesn’t matter that you’re doing better than they are in Spain or somewhere else. There’s a sense that, ‘Okay. Something’s got to give.’ And that’s where incumbents are in trouble everywhere around the world, not just in our two countries.” 

Trudeau’s decision to step down also followed his failure to persuade President-elect Donald Trump not to impose tariffs on Canadian products during the incoming U.S. administration.

Following the 2024 presidential election, Trump mocked Trudeau in social media posts, referring to him as “governor” and joking that Canada could avoid tariffs if it became the 51st U.S. state.

Trump’s Incoming NSA Confirms Biden Holdovers Will Resign by Inauguration Day

(Luis Cornelio, Headline USA) Rep. Mike Waltz, R-Fla., shut down rumors Thursday that President-elect Donald Trump plans to keep some of the Biden administration’s bureaucrats within the National Security Council (NSC) 

Waltz, whom Trump tapped as his incoming national security advisor, told Breitbart on Thursday that all appointees must resign by 12:01 p.m. on Trump’s Inauguration Day on Jan. 20, 2025. He affirmed Biden-era staffers are being made “crystal clear what the agenda is.” 

“Everybody is going to resign at 12:01 on January 20,” Waltz said. “We’re working through our process to get everybody their clearances and through the transition process now. Our folks know who we want out in the agencies, we’re putting those requests in, and in terms of the detailees they’re all going to go back.” 

Waltz’s comments came in response to former NSC official Joshua Steinman, who claimed on Sunday that some of Biden’s NSC personnel were being told they could keep their jobs in 2025. 

“This is a serious error if true,” wrote Steinman on X, garnering over 7.5 million views. Waltz addressed the backlash the following day, assuring that “anyone working under President Trump in the NSC will be fully aligned with his America First agenda.” 

Waltz told Breitbart Steinman’s claims were wrong and could have been addressed with a phone call rather than through viral social media posts. He added that the Trump transition has identified Biden-era detailees. 

“It’s a pretty straightforward process,” Waltz explained. “Because a good portion of the NSC are detailees, out from the agencies, our team knows who we want to bring in and we’re putting those requests out and we’re going to bring them in.” 

Later in the interview, Waltz reiterated, “We’re taking resignations at 12:01 and we’re going to put the president’s team in place. If anybody has any concerns it’s not like I’m brand new to this town. Give us a call and work with us, especially if you were on the team for years already. Everybody should be excited about this.” 

Led by the national security advisor, the NSC is one of the most influential federal groups within the White House.  

As reported by Breitbart, it is formed by federal employees, known as detailees, who represent their respective agencies in the White House for specific purposes, such as providing expertise on certain topics. 

The outlet noted that NSC detailees can easily undermine a president. For example, the leftist Vindman brothers—Alexander and Eugene—were both part of Trump’s NSC and played “whistleblower” roles in the first Trump impeachment.  

Did Elizabeth Warren Consider Jimmy Carter a Right-Wing Extremist?

(Luis Cornelio, Headline USA) What do former President Jimmy Carter and Pete Hegseth have in common? Both have been linked to a symbol that Sen. Elizabeth Warren cynically suggested is tied to so-called right-wing extremism. 

Yes, you read that right.

In a 33-page letter to Hegseth, President-elect Donald Trump’s nominee for secretary of defense, Warren scolded him for having a Jerusalem cross tattoo on his chest. 

Citing Reuters, Warren claimed on Monday that the cross “was a Christian expression associated with right-wing extremism.”  

Yet neither Reuters nor Warren provided evidence linking Hegseth to any hate group. 

Contrary to these claims, the Jerusalem cross is one of the most widely recognized Christian symbols. It features a large Greek cross with smaller crosses in each corner. 

The five parts of the cross have been given different meanings throughout history, all of which focused on Christ, according to the National Catholic Register.  

Interpretations range from the cross representing the Gospels and Christ to symbolizing the wounds on Christ’s feet and hands when he was crucified.  

The Jerusalem cross is so prominent that it’s inlaid in the chancel floor of the Washington National Cathedral, where Carter’s body was placed during his funeral on Thursday. 

This irony ignited mocking reactions aimed at Warren’s attacks on Hegseth. 

“Elizabeth Warren will be furious when she finds out they put Jimmy Carter on Pete Hegseth’s tattoo,” quipped popular X page KanekoaTheGreat.

Renowned author and journalist Jerry Dunleavy IV echoed the sentiment, pointing out that the cross “is so ubiquitous a Christian symbol that it is carved on the floor of the National Cathedral where Carter just had his funeral.”

Breitbart’s John Carney joined the chorus of criticism: “How did Pete Hegseth’s crypto-nazi tattoo get etched into the floor of the National Cathedral before Carter’s funeral?”  

X personality Alex Lorusso added his sarcasm in a post tagging Warren directly: “Looking forward to my Senator, @ewarren, disavowing the corpse of Jimmy Carter as a dangerous neo-Nazi, Christian Nationalist, White Supremacist or something.”  

Lorusso added, “Your silence is deafening, Senator.” 

Republican strategist Arthur Schwartz shared the cover of the Carter funeral’s handout to ask: “Who put Pete Hegseth’s Nazi tattoo on the cover of Jimmy Carter’s funeral program?”

Republicans have dismissed the attacks on Hegseth as a partisan attempt to derail Trump’s incoming cabinet.

Trump nominated Hegseth, a former Fox News host, veteran and nonprofit executive, to head the Department of Defense on Nov. 13. This position requires confirmation by the Senate.