American Express . . . dodged a bullet

I tell people I only need four pieces of plastic in my wallet:
A driving license, my carry permit, an Armed Forces ID card, and a bank debit card.

This is somewhat misleading because I also have a credit card, but it's not plastic.
It's titanium.
I have no idea what the Apples charge for interest on their card (VERY ironically, it's actually a Goldman Sachs card )
I've never paid any interest.
My first test-purchase, years ago was for a NIB Beretta M9, and I found out that the Apples don't really care WHAT you buy with their card, and they might not even be keeping tabs on what you buy.
I also found out that if you buy a pistol (or anything else) in a military exchange store not only are you excused from paying a horribly confiscatory 6% in sales tax, but like any other Apple Pay merch you get two percent back on your purchase.
My last purchase (a few hours ago) was for a Fenix EDC flashlight - also 2% cheaper with the card - and another 10% cheaper because Fenix is a veteran owned company with a good discount programme for teachers, vets, and first responders.
Apple and I do not always see eye to eye politically, but they are at least honorable enough to treat public accommodation as a public good.
My own sweet daughter teaches kids about how we haven't always been good at that.
MSM teaches me that sometimes we still aren't.

As a bonus, the Apples have also been on the right side of right and wrong where government privacy over-reach is concerned.

What's in YOUR wallet?

 

I doubt other credit cards would be any different.

 

I also avoid paying interest on my credit cards, but they do show the interest rate on every statement and I do look. Mine are variable, but have never shown a number anywhere near 28% (as anything other than a hypothetical penalty rate should I miss payments).

Sometimes I pay attention to the relation between what a bank would pay me for my money and what they want me to pay them for their money (an interesting comparison, as both kinds of money are the same color green).

When I was a lad and a bank savings account paid 5¼% without you having to ask, and my credit card asked about 15%, they were asking about 3✕ for their money what they'd pay me for mine.

15 years ago when recovery from the financial crash demanded such reduction in rates that we had to keep a straight face looking at savings accounts posting 0.1 or 0.05% interest and got used to that for years, I did notice that credit card rates had not also dropped to 0.3 or 0.15%. They were staying right around 15%, meaning you now had to pay a bank to use their money 150✕ or 300✕ what they'd pay you to use yours. (Maybe 600✕, for people with worse credit looking at near-30% card rates.)

The last year or two, with bank interest rates finally returning to more historically familiar levels, that spread has come down again; even a 28% card rate is no longer hundreds of times what a savings rate would be. Still, not something I'd expect to be offered with a straight face.

Wasn't American Express's original pitch that they only accepted full payment each cycle and interest wasn't a thing?

 

Maybe AMEX hired "Quitters Inc" to help them out with people who are addicted to over-spending......

I can see the initial consult in their office right now!
...."Ninety-eight percent of our clients will never be late with another credit card payment again! .......After the tenth transgression, you become one of the unregenerate two percent, but hey....even they never pay a late-payment fee again!!!

...We guarantee it."

 

Amex has had some cards that work like other credit cards for some time now.

 

Credit cards are a problem for many citizens
Total credit card debt in the US just reached a new record (usatoday.com)

The real problem however is the credit card problem the Federal Government is racking up for us- scratch that - for our children and future generations
U.S. National Debt Clock : Real Time (usdebtclock.org)
You had better believe you are indeed paying tremendous interest rates on this debt already and indebting future generations.
Inflation, imminently increasing tax rates, dollar devaluation, shrinking value of your saved money (401k's,Bank Accounts, Savings etc.) are all just a few of the ways we are already paying.

 

The debt clock was working mightily during the years 2017-2020, but not much talking about it then. 1/20/21 12 noon, talking about it started again.

Amex has or had a deal where if you start a checking account and a direct deposit from employer etc you get $250. I took advantage of that and they did what they promised. Don’t even need to keep the direct deposit going after that.

 

Yep, get those offers all the time - mostly from airlines and cruise ship affiliated credit cards. They look great on the surface, but as soon as you dig into the terms - it's pretty obvious how they're getting their money back.
I've actually taken advantage of a few airlines CC, to get access to their sky lounges and extra checked bag. I cancel the CC before I have to pull money out of my pocket; first year free. It's strange that I don't get those offers anymore.

 

As one of the people the national debt is owed to, I think I'm earning maybe a couple percent on most of it; better than a poke in the eye, but hardly loan-shark material.

 

Guaranteer or Cosigner responsible for the debt is more accurate.

 

Nope, creditor. I'm getting interest, and will get my principal back when the notes mature.

Unless somebody decides the country should default. Still hasn't happened so far.

 

The great federal-debt Ponzi scheme - Asia Times
"The Federal Reserve and the commercial banks that depend on the Fed are virtually the only buyers of US government debt.
As long as the Fed is willing (and the market allows it) to buy arbitrarily large amounts of government debt, the price of US government debt is whatever the Fed says it is. It’s like the pump part of a pump-and-dump scheme in the stock market, except without the benefit of an exit strategy."

 

Written July 5, 2021. Took him a few months. All quiet Jan 20, 2017- Jan 20, 2021. Jan 20, 2009-Jan 20, 2017 “ponzi scheme” outrage.

 

See if this date is more acceptable
‘The world’s largest Ponzi scheme’: Peter Schiff just blasted the US debt ceiling drama. Here are the 3 assets he trusts amid major market craziness (yahoo.com)

If not, this is dated yesterday - maybe more acceptable
US 'Debt Debasement' Trade Ramping up Amid Big Pace of Spending: BofA (businessinsider.com)

Just for kicks look how much the debt went up since the last post
U.S. National Debt Clock : Real Time (usdebtclock.org)

 

5 facts about the U.S. national debt | Pew Research Center



The 58.9% held by "other public investors" is held some by me, some by my niece, and some probably by a number of other readers of this forum.

The Federal Reserve system is the largest single holder, because the bigger 58.9% chunk is held by a bunch of public investors like me who don't happen to hold as much as the Federal Reserve system does.

 

The I bond I got with the tax refund came in this week. Also have other bonds.
Home — TreasuryDirect

The point was that those worried about the debt only become worried when their party isn't in the White House.

 

I think the problem is much deeper than that and you know it.

Ask Detroit pensioners who lost their pensions when Detroit declared bankruptcy because they had accumulated so much debt bankruptcy was their only option.
Detroit defeats pensioners' appeal over bankruptcy cuts | Reuters

California Faces $68 Billion Deficit Amid Steep Revenue Decline - The New York Times (nytimes.com)

In our neck of the woods -a planned refurbishment of a City Hall was voted down because it wasn't fiscally responsible- we couldn't afford it right now.

Also there is a big debate currently to curb state spending until assets meet commitments.
we'll see how it works out.

The Federal Debt is a very troubling - it is not political - it is simply a disgrace- no matter what party is in office.

It will be interesting to see how the younger generation react to the current generation writing bad checks on their future earnings to support a growing aging population and whole social network of other entitlements.

As we are posting the dollar is devaluing.

Funny how some find financial responsibility repugnant.

Just for kicks see how much the National Debt and your part of it have grown since the last post.
national debt clock real time - Search (bing.com)

I do realize I'm in the vast minority.
Americans Are Carrying Record Household Debt into 2024 (marketwatch.com)
For many Americans the Federal Debt Ponzi scheme is just a reflection of how they live their own lives-they see nothing wrong at all.

Because of the way I was raised and my value system, debt and especially bad debt is not something that appeals to me.
I probably should quit posting on it as both debt and bad debt are trigger points for me!

 

What were the yields Detroit was having to offer to sell a bond, prior to declaring bankruptcy?

I don't know the answer offhand. Maybe someone here does?

 

Expand your horizons by noticing a vast number of people have very high rent. I wouldn’t want to pay what the rents are now, with no hope of ownership in sight. We may sit with low or no housing costs, fully owned, and ponder why others have to struggle and go into debt.