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I don't know if it's the most important. I think monetary policy is the most important. But I agree that it could go a long way if governments would make the d
by cryptica 5y ago
I don't know if it's the most important. I think monetary policy is the most important.
But I agree that it could go a long way if governments would make the distinction between value-creation and value-extraction. The way things are now, people simply do not acknowledge that there is a difference at all.
The reason why I think that monetary policy is the most important thing is that it naturally favors value-extraction (rent seeking). Why bother creating value for consumers when you can just tap into easy money from banks and government contracts?
- User23 5y agoI basically agree. Here’s why I think interest is so odious though: barring rounding errors like minted coins and federal reserve notes, our civilian money supply is bank created deposits. Anyone who borrows at interest from a bank will have to get more money than the bank initially created when it originated the loan. In aggregate it’s clear that it’s impossible for all borrowers to pay back usurious loans. It’s a fundamentally unjust system that guarantees that no matter how well they manage their finances, some borrowers must be forced to default.
- cryptica 5y agoAgreed. I guess it could be said that usury is an integral part of our current monetary system. It looks amazingly profitable from the bank's perspective. You just print money, loan it out to PersonA to buy a house, then collect interest payments on that for 20 years, then PersonB comes along, you print even more money, loan it out to PersonB to buy the same house from PersonA at a higher price, then collect interest payments on that for another 20 years... Repeat ad-infinitum.