A New Banking Product: The Buy Down Charge Card By Anthony Faber, B.A., J.D., M.B.A., Phd.

Perpetual (C)Copyright and (P)Patent by Anthony J. Fejfar and Neothomism, P.C. (PA) In the typical Charge Card from a Bank, the Charge Card Account is a Credit Entry Account, so that when a charge is made at a store a credit entry for that amount is made, and when a payment is made by the card holder at the end of the month, a debit entry is made to reduce the credit balance owed with the charge card. Now, any Bank can become a Federal Reserve Economic Development Bank, and in that regard, if the Bank is using a single entry accounting system, a special type of account can be created and used by the Banks customers. It works like this: The Bank Customer pays a $100

a month service fee with a Credit Card Account, where, at the end of the month, if the Bank Credit Card Holder has charged $5,000, for example, the Bank makes an Adjusting Entry debit entry of 90% of the balance owed, such that an adjusting entry debit entry of $4,500 is made and as a result the Credit Card balance of the Bank Card Holder Customer is reduce to $500. A typical credit card credit limit would be $25,000 per month. Additionally, every month before the credit card statement is sent, a charge for the $100 bank service fee is put on the card balance as a charge. As you can see, the more you use this credit card, the better off you are. From a macroeconomics point of view, this type of Credit Card account increases the M1 money supply and promotes economic activity without the use of tax dollars. Essentially, the money is produced, ex nihilo, or out of nothingness, for free. The only possible downside is inflation which can be guarded against by the strict enforcement of anti-trust laws against grocery stores and gasoline stations, etc.