Korifaeus Magazine

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The defaulting Credit Card System

The great Visionaries
by Korifaeus

Trouble in the banking system was already foreseen in the 1980, with many farsighted folks warning the American banking system that their “credit” card vision will at some point back fire.

The credit card system, with ordinary folks granted credit cards without having said credit limit in the bank, was created to help the economy. The more folks would purchase the better for the economy. Even if these folks had no money at all, but given credit cards with which to purchase, it would help the economy AND the banks. So the vision.

The vision was as follows.
Bank 1 provided millions upon millions of loans to companies A, B and C.
A, B and C, however, would only be able to pay back their loans if they make a profit, ergo; sell their products. They can’t sell their products if folks don’t have the money to purchase them. Thus, folks need be given money to purchase products from these companies to assure these Companies can pay back their loans.

” Eureka ! Let’s give the people Credit Cards.”.

Since then millions upon millions of Credits cards have been issued annually. The more Credits cards are approved the better for the “economy”. In the meantime, the great “majority” of credit card holders are unable to pay off their credit card debt, thus asked to pay “at least” the minimum.

It is not unusual for credit card holders to have several ( 3 to 7, sometimes even more) credit cards of different credit card institutions, owning on the average 40 to 60 thousand Dollars on their credit cards. The more credit cards they have and the more debt they have (money they own) the better their credit.
Makes perfect sense, … not ?

It seems unorthodox, but it’s a fact. A person with no debt at all doesn’t have “good” credit. A person with no debt has ” bad” credit. The more debt in form of loans, leases or credit cards the better the credit in nowadays credit rating system.

What’s even more fascinating is the “interest” one gets when entrusting a Bank with one’s money, so the Bank can use it, giving loans and charge their deptors enormous interest.

It’s perfectly legal and it’s one of the great things of this country; free enterprise, a capitalist system – everyone has the right to do business the way they choose to, as long as it’s not against the law. Stealing is against the law, but Banks aren’t stealing. We “voluntarily” entrust them with our money.

Opening my first personal savings account in 1980 i got 8 1/2 % interest. Today we get a “maximum” of 0.9 % on an average bank account. Less than 1% interest. While we have to pay the Banks an average of 14% interest on Credit Cards. It’s perfectly legal and it’s not something done secretly. We know about it and “we” agree to it.

The Banks are not the bad guys, nor do our lawmakers do something wrong. I chuckle when i hear about the protestors on Wall street, most of whom don’t have a pot to pisher in, while yet they protest against Banks who very much adhere to our constitution.

Nothing Banks do is unconstitutional. Banks are businesses, not non-for-profit organization. Everything in this country is in accordance with the sentiment of, “We the people, for the People, for the People, of the People. Not the Banks have power over the people, rather the People are in charge of Banks.

We the people supply the Banks with the product they need for business. A supermarket needs produce, which the farmer supplies – a shoe maker needs leather which the leather person supplies – a Bank needs money which the people supply.

One could say,”Yeah, but what about Wall street ?”

What about Wall street ? It perfectly reflects what people want. No one is forced to buy stocks. It’s a “choice” and an opportunity for people to invest their money, with a “possibility” to double or triple their investment. It’s what people wanted thus it was created for them.

Las Vegas was created for people as well. Casinos wouldn’t exists if folks didn’t like “gambling”. No one is forced to put money on a roulette table, but people do, hoping they’ll win. It’s not the Casinos who’re greedy. It’s smart business men taking advantage of “people’s” greed.
But dare one loses the chips put on the poker table; then it’s all the Casino’s fault and they’re the bad guy.

Banks are not independent. They’re highly dependent on THE people. Wall street is not independent; they depend on THE people buying stocks, the same way Casinos depend on THE people buying chips hoping to win the jack pot.

The Power always has and always will be in the hands of, …We the People, thus there’s really nothing to complain about, is there ?

.

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This entry was posted on May 17, 2012 by in Observation and tagged , , , , , , , , .
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