Aha! A definition of Money vs. Credit

Market Ticker just gave me an ‘Eureka!’ moment.

Remember folks that money and credit are not the same thing even though they spend exactly the same way. In the essence money is the economic surplus generated through past economic activity while credit is a promise to perform economic activity in the future.

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Posted on December 19, 2011, in economical. Bookmark the permalink. Leave a comment.

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