You may not want to hear this, but a threat is facing the U.S. economy that no one is talking. As discussed today in Le Monde, a veritable Frankenstorm of factors is now coalescing to crash the U.S. economy in the near future, along with other nations. Student loans are spiraling out-of-control due to declining family incomes, skyrocketing tuition costs, and the 
wholesale abandonment of public universities by state governments. Christopher Newfield writes in “America’s Degree Scam” that “student debt may succeed subprime mortgages as the next disaster in the crisis of US capitalism. It is estimated at more than $1-trillion and has doubled over the last 12 years. Average debt for graduates with student loans rose to $23,200 in 2008; public university debt was only slightly lower, at $20,200. Despite the impossibility of discharging student debt through bankruptcy, the student loan default rate has gone from 5% to 10% between 2008 and 2011.” A similar story entitles “Debt Tops $1-Trillion” appears in the current Voice of Detroit. Continue reading “Student loans to soon trigger economic crash”