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>Where's the money coming from....

That is literally how all credit card purchases work. And yes you are right. Based on that looks like that inflation rocket is headed to the moon. The general population is just not capable of seeing even one layer beneath the surface of a system.

Its like that skit where the people ask the programmer why they cannot have three parallel lines that intersect (or something like that) and he says "geometry."

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You all are getting way to much into money theory. If a credit card processor charges 2-5% per purchase the business is going to pass that cost directly to the customer. Its not "inflation the definition" but it causes all prices to go up as they include that in their price model. Even if you don't use a credit card. Very few large business give a cash discount to consumers.

>Based on that looks like that inflation rocket is headed to the moon.

???

Surely you realize that unsecured revolving credit is going to have higher interest rates than government debt?

Credit spends exactly the same as cash. All outstanding credit card debt is essentially an increase in the money supply.

>All outstanding credit card debt is essentially an increase in the money supply.

And how big is credit card debt compared to M2 supply?

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