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Inflation, Interest Rates, Debt Levels: The 'Trinity of Trouble' is Happening Right Now
Folks, a dangerous combination is brewing beneath the surface. It's what I like to call the "trinity of trouble." When inflation and interest rates rise together, it puts a strain on U.S. consumers. That's happening today, of course. And it's even worse when a third factor is rising. Credit card balances are growing in the face of higher interest rates. And when inflation, interest rates, and debt levels all head in the same direction, things don't usually end well. The problem is U.S. consumers are sometimes blind to the consequences of overleverage. Heck, even U.K. pension funds recently learned a lesson about ... (full story)