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0/Near 0 interest is the end-game of fractional reserve banking. Consider the alternative: Rates climb back to 20%. You (and everyone else borrowing) now need t
by jsprogrammer 11y ago
0/Near 0 interest is the end-game of fractional reserve banking. Consider the alternative: Rates climb back to 20%. You (and everyone else borrowing) now need to somehow collect an additional 20% (ignoring compounding and early payments) money each year. 1) that's not going to happen unless massive amounts of money are borrowed by lots of people 2) that money must move fast enough (and be continually reborrowed) to make it out to everyone who has an upcoming (very large) interest payment.
The banks are a serious drain on the system. They get to extract percentages from the economy year over year, while contributing nothing (except interest obligations).
- shostack 11y agoDo you see a potential solution?
- jsprogrammer 11y agoSome type of "normalization" process can probably be used successfully for a while, but more seriously: I think we need to track dependencies; as in, the full supply chain. Then, perhaps, we try to figure out how to engineer solutions that will guarantee certain certain conditions will be met (e.g. Enough food for every person in an area will make it to that area for everyone there to live satisfactorily). As the dependencies are mapped out and tracked, it will become obvious which tasks are necessary to fulfill the current economic objectives. Then, it's simply a matter of performing the tasks.