For years I have been advocating the United States government and banking institutions quit relying on excessive consumer credit card interest rate charges as a way to profit from the poor and middle class. Apparently Standard and Poors agrees with me and they have now confiscated the credit card interest rate profiteering that the banks and our government have been engaging in in ever increasing volume over the past decade and a half, by lowering the U.S. credit rating.
The Standard and Poors U.S. credit rating reduction may result in an annual surcharge of 75 billion dollars against main street and those already in debt. I estimate that every year consumers pay around 100 billion to 175 billion in credit card interest rate charges.
Instead of cutting the interest rate obligation for those who would agree to keep paying DOWN their overall credit card debt, Standard and Poors just stepped in and STOLE what should have been credit card debt interest rate relief for main street.
We live in a time when LESS overall consumer debt IS A GOOD THING, yet the government, news media and wall street continues to bray out loud that main street is desperate for access to additional high interest rate credit card debt. Our own government and wall street has allowed their own credit card interest rate greed to hit main street america once more in the pocket book.
The extra profiteering that the banks and the U.S. government were making off of credit card interest rate charges has just been siphoned off by Standard and Poors. Sadly, bankers, wall street and the government will use the standard and poors U.S. credit rating reduction as an excuse to RAISE interest rates against main street, when it is painfully obvious that those who are in debt need some type of RESPONSIBLE RELIEF.
A reduction in main street's debt would be achieved by lowering credit card interest rates on debt that has already been accrued, which would actually improve the United States economy moreso than raising interest rates in general.