A company gives you a credit card. They loan you money at an interest rate if you don't pay it back immediately. This is money that they conjure out of thin air by the alchemy of fractional reserve banking. They loan you this money because about 30% of the population is ignorant enough to think that it's essentially free money and they get screwed by interest without even understanding it. About another 20-40% wind up paying interest because life happens to fuck them over at a particular time and they can't pay off the entire balance all at once. They charge the merchants 2-3% on top of that for facilitating the transaction. The transaction using money that they conjured out of thin air that only exists on their balance sheets.
They make so much money exploiting the financially illiterate and the unlucky that they actually offer incentives to get people to get their credit cards.
Does it ever strike you as weird that society allows and normalizes? In my parents' time I am told that it was difficult to get a credit card, it was hard to get a bank to even loan you money. Now I get mailed preapproval for credit cards. What happened that allowed the finance industry to get this much scummier in the last 40-50 years?
I mean, of course it's true that they create money out of thin air as you make a debt but that doesn't mean that they can print money infinitely. Healthy balance sheet must be preserved so if there's too many defaults and banks hold these toxic assets they can go bankrupt too.
And well of course normies can always avoid paying it if they just declare bankruptcy. They just have to make sure all their assets are in crypto that nobody can take until the bankruptcy is settled and their debt is removed.
The reality is that the banks do indeed conjure money out of thin air when they extend credit via credit cards. That process is indeed popularly called "fractional reserve banking". Credit card companies are nothing but middlemen and have no role in the debt creation process. By defending the retard above, you have outed yourself as a retard extraordinaire.
Yeah yeah, before someone points it out, credit card companies don't lend you money. When you use a credit card, you are taking on BANK debt (the name of the bank is right there on the card). Visa or Mastercard have nothing to do with the money creation process. They merely facilitate electronic fund transfers.
But still, people are so trustful of the system, dude.
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