The news this morning is about the highest level of consumer credit card debt.
Read it here. 2.7 Trillion
Read it here too. With Karl Denninger's chart which he copyrighted so go to the link to see it.
Or go to the
FRB source if you like numbers.
Credit card debt is revolving debt. Does that even need to be said? Like water is wet!!!
Yes, for some intuitive reason that is the purpose of this post: To restate the obvious.
Credit is revolving debt!
The rest of the statement......the flip side of credit as revolving debt is: Savings is revolving debit. It is the account from which payments may be made on credit card bills if credit was the method of consumer purchase or from which direct payment with no requirement for credit is made.
Google me: "Credit is revolving debt" and there are 185 hits. Plus suggested variations of the phrase offering possible conceptual relationships.
Google me this: "Debit is revolving savings". There are no hits on that en-quoted phrase. None.
Google me this: "Savings is revolving" No results found. Not for "Savings are Revolving" either, at least in the contextual frame I am looking for. There are in fact 3 hits but they are coincidental and do not relate.
I am the first person in the world to enter this phrase into the Google searchable World Wide Web. It is like discovering a geographic feature and giving it a name of my choice. Like a geographic feature; it was always there. Conceptually there but un-named in terms of phrase that had never been made before.
A rose by any other name is still a rose but there are umpteen varieties of roses. A different way of looking at Credit from the Debit point of view. My own "American Beauty". I like to look at things in a different way but when I can put a uniquely new way of looking at something into a word phrase that has never been used before there is a thrill of being the first to the top of Mt. Everest. There are so few places left to be the first to go there except in the conceptual world!
I claim credit for the original phrase "Debit is Revolving Savings" and place the phrase in the Public Domain Commons! If you googled it today you would only find it here and no other link!!!! Until it became used elsewhere but it was here first!
Gee, it is like planting my flag on the moon. Forever will I be remembered. There are so few places left to conquer and name!
Debit is Revolving Savings! Money has never framed on the WWW in that specific phrase! Despite the obvious corollary to the phrase Credit is Revolving Debt.
Why not? The Money Masters focus is not debit, it is credit! There is no money in it for them if people primarily view a revolving fund as savings!
This is lame:
An eHow explanation of the concept of a Revolving Savings Account as something new to people as an account to pay recurring bills, unlike a regular savings account.
Many people have a checking account
or a savings account, but it is not often that you hear about people
having revolving savings accounts. Revolving savings accounts are not as
well known due to their specific purpose for saving for irregular
expenses. Using this type of account can be an effective tool for
budgeting your money.
Duh! All Savings are by definition a Revolving Fund unless they are never intended to be spent! In that case they are called principal and the rule of the rich that they pass on to their children is: "Never ever spend the principal, only the interest on the principal." The rich can afford to do that. For all the rest of us it is only a matter of time before savings are spent, with or without replenishment which would be eating down or retiring the revolving fund to nothing. From that point the declining trend in net savings becomes and increasing trend in net credit debt.
So what was important to express about the growth of credit in consumer spending and total credit level debt to new high levels?
I want to know the total amount of all consumer savings accounts. The total of M2 money in the consumer savings accounts. Then I want to know the change in the level over any period of time starting from the end of last month. Want to know exactly what the debit side revolving fund of consumer saving looks like. The revolving debit money account that pays the bill presented by the credit side of Consumer Spending. At least for those that choose to spend credit money instead of savings account debit money. Credit spends the same as cash but the credit charge has to be paid in cash as a function of time. There is a vital relationship there that should not be so hard to find.
Searching....Buscando....
Lots of hits....sorting them out.
I find a great number of hits on "Personal Savings Rate" That is not what I want to know.
What I want to know is not easy to find.
I will be more specific about what I want to know.
1. First I will state the fact of what is known about Consumer Credit.
2. Then I will state what I want to know about Consumer Debit. Yes, I know, Consumer Debit is a new concept that I created and applied to an existing concept that was not looked at that way: The Consumer Savings Account that pays the bills. It should not be so hard to understand not find the metrics of it. It is all our money in the bank with which to pay the bills. Either immediately upon purchase (no credit) or later upon the extension of credit to do that.
These are the facts about Consumer Debt in terms of M2 money. The spendable medium of exchange. The money that consumers spent to buy something using money they had to borrow on credit at the point of purchase because they did not choose to spend the money they had in savings or could not because there was nothing in savings and they had to defer payment out of savings until there was some income money in the revolving savings account to pay the credit bill in total or pay into a revolving credit fund in order to maintain its use. That payment being equal to purchase price or purchase price plus interest and other charges depending on the credit agreement.
There, I made a pretty good definition of what Consumer Credit is. Didn't I?
These are the measurement numbers that apply:
(A given truth: Debt = Credit) Outstanding credit. All credit is outstanding...errr...ambiguity alert..I know what I mean the unpaid loan. Maybe a wonderful thing to the banker....unless it is defaulted.
Total Consumer Debt (Credit), End of Month October 2012 = $2.75 Trillion
During the month of October, 2012 Consumer Debt (Credit) increased 14.2 Billion.
What I want to know: What is Consumer Debit? (Fill in the blanks with the ??? with factual numbers )
(A given truth: Debit = Saving = Consumer Money in the bank that is not credit (earned savings) in a revolving debit savings account used to pay amounts due upon purchase or when billed as due.)
Total Consumer Debit (Saving), End of Month October 2012 = $??? Trillion
During the month of October, 2012 Consumer Debit (Saving) increased ??? Billion.
Not so easy to find.....
Searching..........
A debit card is only used to pay directly from savings. Checks too but who uses them anymore? Then there are direct payments from our bank accounts that are done with neither checks not credit cards. Direct payments called.....Direct Payments! I guess. Debit card use in terms of total money amounts is not what I want to know.
Searching....
Wow! I posted this to search later and as soon as I could do a Google search on the phrase "savings is revolving" this blog post came up as the only hit on Google.
First to the top...where is the T-shirt?
Any fool can be the first to coin a nonsense phrase, only a genius can be the first to coin a phrase that makes sense.
Genius is the first to see what everybody else sees but to give it a name that defines what is seen to be understood.
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