@RAMB0IV - I agree, interest is the killer. Imagine what it would be like it there were no private banks and instead just 1 government owned bank who did not charge interest on loans. The incentive for a government owned bank would not be profit, but instead the sucess and growth of business. Further more, I dont think its right that a bank should charge interest that both isn't thier money and monsey which they have just created into existence.
Look it at it this way, the first factory built in a country in an emerging economy could only be built by credit or money created by it. And not only that, the first salaries to the employees of that factory could only be paid by money created by credit. Therefore without bank credit there cannot be economic growth. Bank credit fuels economic growth, and this is possible as long as the country has the physical assets to transform that currency into industrial capacity.
so company x promisses to repay the loan and interest in 5 years then uses that money to get material stuff like water electricity windows walls and chairs to make other phisical matter like an human brain and muscle do an task what the heck did the money create in terms of growth , nothing its more numbers that wont make plants grow or an wall to materialize, we just like the numbers to allocate a little to do productive work more to management and even more to marketing and the people who build all that stuff get the fewest of all the numbers invented
Consumers, entreprises and governments, through what they buy, are allocating money... Of course, the banks will ease the process depending on the credit worthiness
Incredible insights, makes you really wonder why we don't learn about this in school. If we did, what would be the outcome?
muffin man
Prosperity and freedom. That's why school don't go near the subject.
@RAMB0IV - I agree, interest is the killer.
Imagine what it would be like it there were no private banks and instead just 1 government owned bank who did not charge interest on loans.
The incentive for a government owned bank would not be profit, but instead the sucess and growth of business.
Further more, I dont think its right that a bank should charge interest that both isn't thier money and monsey which they have just created into existence.
Look it at it this way, the first factory built in a country in an emerging economy could only be built by credit or money created by it. And not only that, the first salaries to the employees of that factory could only be paid by money created by credit. Therefore without bank credit there cannot be economic growth. Bank credit fuels economic growth, and this is possible as long as the country has the physical assets to transform that currency into industrial capacity.
so company x promisses to repay the loan and interest in 5 years then uses that money to get material stuff like water electricity windows walls and chairs to make other phisical matter like an human brain and muscle do an task
what the heck did the money create in terms of growth , nothing its more numbers that wont make plants grow or an wall to materialize, we just like the numbers to allocate a little to do productive work more to management and even more to marketing and the people who build all that stuff get the fewest of all the numbers invented
Consumers, entreprises and governments, through what they buy, are allocating money... Of course, the banks will ease the process depending on the credit worthiness
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