Credit ≠ Profit, unless you’re a profiteer in the financial industry

October 22, 2010

In Louis A. Ruprecht’s Religion Dispatches essay “Can a Greek Monastery Be Ground Zero of Global Financial Meltdown?” he recounts the recent financial history of that country:

Virtually no Greeks had credit cards in the 1980s; precious few had access to the kind of credit that made businesses big and profitable.

Wait. Wait.

Credit means I owe somebody, because I’m using their money, i.e. it’s my debt to them. So I don’t really have that money — it’s illusory, i.e. I’m living beyond my means, whether I’m a business or just a plain old citizen… oops! I mean consumer.

And if I’m using their money, then it’s not my money.

Which means it has to be taken away from my profits.

And what they charge me for using their money is really their profit.

So, now, whose profit is that credit about?

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