American Debt Delinquency Surges as Inflationary Storm Looms: Are You Prepared?

Written by Eric Blair

In a landscape of mounting economic uncertainty, American consumers are sending a clear signal: debt pressures are rising, and concerns over long-term inflation aren't going away anytime soon. The latest report from the Federal Reserve Bank of New York highlights a troubling trend—Americans are increasingly at risk of missing debt payments, with expectations of delinquency hitting the highest levels since the height of the pandemic in April 2020.

In September, the probability of consumers being unable to meet their minimum debt obligations jumped to 14.2%, marking the fourth straight month of rising delinquency risk. For context, that's not far from the 16.1% seen during the chaotic early days of COVID-19 lockdowns. This data should set off alarms for anyone still trusting the system to protect their financial future.

While this rise in delinquency risk underscores how vulnerable many Americans are, it's even more unsettling when paired with the persistent fear of inflation. Consumers believe inflation will remain elevated over the next three to five years, with expectations climbing to 2.7% and 2.9%, respectively, over those horizons. Keep in mind, these expectations have steadily ticked upwards despite the Fed’s so-called progress in taming inflation.

Let me spell this out for you: if you think this inflationary threat has passed, think again. Even though official inflation measures like the Consumer Price Index (CPI) slowed to 2.4% in September, it’s still well above the Fed’s target. And while Wall Street cheered the dip, ordinary Americans are still feeling the squeeze in their wallets. Groceries, energy, and everyday essentials continue to skyrocket, eating away at purchasing power and savings.

But let’s not get caught up in the mainstream spin. The Fed wants you to believe that interest rate cuts and controlled inflation are just around the corner. The reality? The central bank is stuck between a rock and a hard place. They’re treading carefully, with the Fed only cutting rates by 50 basis points in September, dropping them to a range of 4.75% to 5%. Meanwhile, the true economic picture paints a more ominous story.

Despite the optimism from Fed Governor Christopher Waller about the economy’s resilience, the facts show otherwise. Over the past year, Americans have faced an inflationary cycle unlike anything we've seen in decades, with the highest peak reaching 9.1% in June 2022—a 40-year record. And with more job market uncertainty on the horizon, the risks of relying on a fragile system continue to grow.

Don’t fall into the trap of thinking the government or big banks will save you when things go south. The probability of losing one’s job hasn’t changed much, but consumer fears about access to credit and the stability of their finances are clearly mounting.

This all begs the question: how are you preparing for the next financial crisis?

If you’re still parking your wealth in traditional banks, trusting fiat currency, or counting on the Federal Reserve to manage inflation, you’re playing a dangerous game. Now more than ever, you need to think about securing your assets outside the system—before it’s too late.

What You Can Do Now:

1. Shift Your Wealth to Tangible Assets – Gold, silver, and cryptocurrency are critical hedges against the inevitable collapse of fiat currency.
2. Download Our Free Guide – Bill Brocius’ ebook, 7 Steps to Protect Yourself from Bank Failure, is your roadmap to safeguarding your money. Get your free copy here.
3. Join Bill’s Inner Circle – For $19.95 a month, you’ll get exclusive insights from Bill Brocius, including his deep dives into the economic data the mainstream media glosses over. Protect yourself by subscribing to the Inner Circle here.

As the delinquency risk rises and inflation persists, there’s no time to waste. The economic landscape is shifting rapidly, and you need to be ahead of the curve. Don’t wait for the next crisis—start protecting your wealth today.