Mises made a distinction between credit that is backed by savings, and credit that does not have any backing. The first type of credit he labeled commodity credit the second he labeled circulation credit. It is circulation credit that plays the key role in setting the boom-bust cycle process.I use other words.... "backing" is the key word... asset-backed... he refers to all assets not employed available to lend in the form of money as credit.
And then currency credit is ex nihilo credit, out fof nothing..
I like credit and ex nihilo credit, not credit modified two ways, when the word credit is perfectly good on its own when to mean credit.
Mises assumes an interest based market, of which paying or taking is not legitimate in business or life. Just sayin'
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