This was posted by Crimson Ghost on the Mish
board. It may appear to be about Credit Cards
but I think its about gold as a currency ...
House of Cards
News: Signing up a new credit card customer: $58. Buying off Congress: $8.5 million. Keeping Americans in hock for life: priceless.
By Dave Gilson
Illustration: Serge Bloch
September/October 2007 Issue
In 1970, 51% of Americans had a credit card, compared with 93% today. The average cardholder has 7 cards.
Americans owe $850 billion in credit card debt. The world's 54 poorest countries owe $412 billion in foreign debt.
A "preferred customer," according to one MasterCard vice president, is someone with a "taste for credit" who's "willing to make minimum monthly payments—forever."
60% of Americans have been in credit card debt for more than a year.
The average U.S. household owes $9,659 on its credit cards.
If you owed that much on a card with a 14% apr (the average interest rate) and made 2% monthly payments, it would take you more than 6 years to pay off — and you'd pay $4,922 in interest.
1/3 of Americans claim they pay off their credit card bills in full every month.
Inside the credit card industry, these customers are known as "30-day wonders" or "deadbeats."
The average American household spends 14% of its disposable income paying off debts. It puts negative 0.5% into savings.
Last year, banks sent out 8 billion credit card applications, a 30% increase since 2005. Credit card companies spend an average of $58 to sign up a new customer.
Madonna reportedly gave her 9-year-old daughter a credit card with a $10,000 limit in 2005. A friend told In Touch, "She is hoping to teach Lourdes to be responsible with money." The Material Girl's publicist denies it.
In March, Hasbro announced that Visa would be the "preferred form of currency" in a new Game of Life. A Visa exec called the move "a powerful illustration of consumer preference to pay with Visa for everyday purchases and once-in-a-lifetime experiences."
Americans charged $51 billion worth of fast food last year, a 29-fold increase since 2001.
1/3 of low- and middle-income households report going into credit card debt to pay for rent, utilities, and food.
Kiss of Debt; Make Love, Not Debt; Wallowing in Debt; and Broke-Ass Student are among the dozens of "debt blogs" that chronicle their authors' struggles to pay off credit cards and other bills.
Since 1996, when the Supreme Court struck down limits on credit card fees, the average late penalty has jumped 162% and the average fee for exceeding credit limits is up 138%.
Credit card companies earned $90.1 billion in interest last year. They earned $55.2 billion in fees.
Mother Jones
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