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Gifts from The Morning Star
Report card on a failing economic system
Capital’s imperative to reproduce itself has taken it into riskier and riskier places, writes ZOLTAN ZIGEDY
Traders work on the floor at the New York Stock Exchange in New York

ON Friday May 6 the Federal Reserve released data showing that consumer credit (debt) has been accelerating since the fourth quarter of last year, with revolving credit (largely credit card debt) speeding up at an even greater pace since the third quarter of 2021.

Total consumer credit in the US grew by an annualised rate of 7 per cent in the fourth quarter of last year, increased to 9.7 per cent in this year’s first quarter, and expanded to 14 per cent in March.

At the same time, revolving credit — the debt largely incurred through credit cards — grew 8.3 per cent in the third quarter and 12.7 per cent in the fourth quarter of 2021, and then 21.4 per cent in the first quarter of this year, and an astonishing 35.3 per cent in March.

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