Tags: inflation | us | biden | government spending | 34 trillion

USA Hyper-Inflation – 157% in Past 3 Years

USA Hyper-Inflation – 157% in Past 3 Years

George Mentz By Wednesday, 10 April 2024 11:43 AM EDT Current | Bio | Archive

This week, there are now more CEO’s saying that lending rates could get even worse and go up to new 40-year highs not seen since the Jimmy Carter debacle and Reagan’s landslide election of 1980.

The intersection of hyperinflation and escalating interest rates on various types of loans has disproportionately affected women and minorities, exacerbating existing economic disparities. The weak energy policies, increased fuel prices, and skyrocketing food prices have only become more harsh wiping out savings and discretionary income for working families according to the IMF.

The surge in inflation coupled with soaring interest rates has created a formidable financial burden, particularly evident in the realms of home loans, auto loans, student loans, and credit cards.

To illustrate, the average interest rate on a 30-year fixed-rate mortgage has skyrocketed by approximately 157.41% since January 2021, reaching 6.95% in March 2024. Other loan and bank products such as credit cards, student loans, and auto loans went up in a devastating fashion which continually injures working families.

Here are the 3-Year Changes of Costs for various types of loans:

  1. Credit Cards APR: 19%-29% Lending Rates Worse by 42.3%
    • Credit cards often charge higher interest rates than other loan products. Right now, most women and minorities are paying between 19 and 29% interest rates which kills savings, spending, and investing. These are loan shark style rates inflicted upon working families by government and banks.
  2. Average APR in 2020:
              o In 2020, the average annual percentage rate (APR) for new credit card offers
              in the U.S. was 14.71%
  3. Average APR in 2023:
    • As of Q3 2023, the average APR for new credit card offers stood at 20.93% but is generally around 24-25% for most.

Therefore, the average credit card APR increased by approximately 42.3% from 2020 to 2023.

  1. Student Loans Loan Rates also Double over 100% in Costs
    • Federal student loan interest rates are up over 100% in 3 years.
    • Rates vary based on the type of loan. For loans disbursed between July 1, 2023, and June 30, 2024: Presently, the average rate is over 9% which is up over 100% in the last 3 years.

2020-2021: Fixed interest rate of 2.750% applied for both subsidized and unsubsidized loans. The 2023-2024: The fixed interest rate of 5.5% was for both subsidized and unsubsidized loans. So, the percent change from 2.75 to 5.5 is 100%.

Thus, 43 million families with overpriced student debt are paying double the interest since President Trump left office.

  1. Auto Loans APR and Loans up 94.8% -

The Initial rate (December 2021): 3.85 percent and recent rate (September 2023): 7.5 percent

Auto loan interest rates depend on factors like credit score and lender. On average: New Cars: Around 7.1% APR and Used Cars: Around 11.6% APR

Therefore, the average auto loan rate hits working folks with a 94.81% percent higher punishment in costs over the last three years.

  1. Home Mortgage 30-Year Rates up 157% in 3 Years
    • As of now, the average interest rate for a 30-year fixed mortgage is approximately 6.95% according to the St. Louis Federal Reserve. Keep in mind that mortgage rates can get worse, and the 30 year loan rate costs are directly passed on to renters creating rental hyperinflation.

Calculating the percentage increase:

  1. January 2021: The average interest rate was a record low of 2.7%
  2. October 2022: The rate surged to a high of 7.08%
  3. Current Rate (March 2024): The average rate stands at 6.95%

Therefore, since January 2021, home loan interest rates have gotten worse by approximately 157.41%. This substantial rise has impacted affordability for potential homebuyers.

  1. Rent Costs 270% More Compared to Wages
    • Rent Costs - Rental prices hikes got much worse beating and surpassing annual wage increases by 270%.
    • Last year, many cities had a 30% Rent increase in year 2023 pummeling inner city minorities and youth.
  1. Small Business Lines of Credit Interest Rates up over 100%

Business lines of credit allow you to access funds as needed. Interest rates can vary widely from around 6% in 2020 to 13% today up over 100%: Presently, a small business in the inner city would pay about 9.00% to 75.00% APR% on average for a loan. Bank Rate reports SBA loans Fixed rate: 13.50% to 16.50% and Bad credit business loans from 20% to 99%+ APR. In 2021, the interest rates for SBA disaster loans was set around 3.75% for businesses and 2.75% for non-profit organizations, with long-term repayment options of up to 30 years.

Overall, this painful economic landscape not only complicates the path to renting or homeownership but also adds strain to managing existing debts, hindering financial stability among marginalized and ethnic communities.

As 2024 interest rates climb to loan shark rates, the accessibility of credit diminishes, perpetuating cycles of financial exclusion and widening the economic gaps for working folks who also already pay an outrageous totality of rates for sales tax, federal income tax, entertainment taxes, internet taxes, cell phone taxes, auto taxes, luxury taxes, real estate taxes, cable TV taxes, and local income taxes.

Furthermore, analysis suggests that nobody would even need student debt relief if the government had not intentionally raised lending rates on working families with debt by a staggering 100% on most loans.

All of this unnecessary calamity upon workers is occurring while many on public assistance receive tax free housing, food, and health care and do not feel any of the suffocating effects of hyperinflation with higher: rent costs, loan repayments, food costs, insurance costs, or health care costs.

In this volatile financial climate, it becomes imperative to address the disproportionate impact of hyperinflation, escalating interest rates, and rental costs on working families, women, children, and minorities.

To make a long story short, the math does not lie. According to the US Federal Courts, Business bankruptcy filings rose 40.4 percent, from 13,481 to 18,926, in 2023 .

This alone shows the effect of bad policies while millions of workers continue to struggle and run up credit card debt to a record $1.1 trillion. In the most recent inflation survey by Northwestern Mutual Life, Americans believe they need 53% more money to retire than they did just a mere 3 years ago. This data clearly shows that hyperinflation is seen by Americans as a 50% increase in the cost of living over the last 3 years which is destroying the middle class and working families.


Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.


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This week, there are now more CEO's saying that lending rates could get even worse and go up to new 40-year highs not seen since the Jimmy Carter debacle and Reagan's landslide election of 1980.
inflation, us, biden, government spending, 34 trillion
Wednesday, 10 April 2024 11:43 AM
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