Home Forums Hunting & Shooting Hunter's Campfire Where does Credit Card money come from?

I've heard of two possibilities. The first is CC money comes from savings accounts. The other is CC money is just a journal entry by the CC company creating money out of thin air. When the money is repaid the CC company reverses the journal entry thus removing that money from the total money supply.

There's no such thing as "Credit Card Money"
A credit card just a promise to pay, and the companies are just making short term loans

Credit card money comes from the millions of poor schmucks who use plastic to buy every little gewgaw they think they need. When the interest is in the 20% range its damn near impossible to get it paid down.(I was that schmuck ten years ago, and its turned me into a tightwad)

If ya want to see how a bank can create money, take this free course and pay attention to lecture 8. This info will put real bullets in your econ. understanding belt.

https://online.hillsdale.edu/econ101

from the ATM

It is all XX's and OO's in cyberspace counting on promissory commitments from buyers and sellers based on a time continuum levied against the applied credit of the card holder and the ability of the creditor to wait for the accounting advancement into their account, both parties not actually suffering any actual money transfer of hard currency...

It is an electronic journal entry, check out the book "The great american snow job." I wouldn't recommend everything in the book but it is interesting.

CC money comes from Obama's stash - the same place folks think they get those free cellphones and other free stuff the gov hands them using your money..

Yes. Right out of your paycheck. Their profit is from interest and service charges paid by businesses.

Right out of your wallet, directly from your labor, the only place money is created in truth.

My ex-wife thinks it comes out of thin air.

I have an ex wife that thought as long as she had checks, she had money in the bank.

Never could make her understand that line of thinking was not valid.

I had one of those too...Thank God and Greyhound she's gone!

That's where all current US currency comes from, i.e., debt. Credit card money springs into existence the moment it's borrowed, thus expanding the total supply of currency in existence, thereby contributing to price inflation.

Money doesn't really exist at all anymore, and hasn't since we went off the gold/silver standards. Our money no longer says "pay", it says "Federal Reserve Note". We've been living off promissory notes for ages.

From the emperors stash.

They're not even that since they don't promise anything.

Credit card companies back their loans with Federal Reserve short term low interest rates. Advance the money and charge the consumer long term high interest (10-18%) rates. They can turn some dollars over 10-12 times per year for a total of 50-100% APR.

Almost a better racket than insurance companies.