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For a long time I thought the Abrahamic prohibition against usury was bs. Yeah yield is like a natural economic law, who are these ancients to claim it is a law

For a long time I thought the Abrahamic prohibition against usury was bs. Yeah yield is like a natural economic law, who are these ancients to claim it is a law against God? The deeper I go into Bitcoin the more I understand the complications of usury. I am by no means religious, but the more you look back the more you see the corruption of man throughout history. The switch from usury bad to usury good only took 800y.

imtringued 5y ago
Actually all religions are completely right about usury. The problem is that they had no idea how to get rid of it. Banning it obviously doesn't work. >. Yeah yield is like a natural economic law, who are these ancients to claim it is a law against God? Actally classical economics predicts that there is no such thing as capital gains, i.e. a perfect market drives economic profit and capital gains to zero. Keynsian economics has the idea of liquidity preference. Once the interest rate falls below liquidity preference people will simply hold onto money at 0% because they woild rather have their money immediately available than invested or lent out over the long term. This means the interest rate gets stuck in a positive range and profits can never truly fall to 0%. Keynes' idea was an attempt at reducing the real interest rate to 0% via constant inflation as he dismissed Silvio Gesell's proposal of directly adopting a negative interest rate on cash via his famous demurrage currency idea. Liquidity preference is a general concept that applies to almost every asset. However, Henry George discovered that land is kept empty when its yield is below the liquidity preference of the owner. The owner would rather sit and wait until an opportunity presents himself even though the plot of land that he is keeping away is needed to satisfy a basic human need: shelter.

imtringued 5y ago

Actually all religions are completely right about usury. The problem is that they had no idea how to get rid of it. Banning it obviously doesn't work. >. Yeah yield is like a natural economic law, who are these ancients to claim it is a law against God? Actally classical economics predicts that there is no such thing as capital gains, i.e. a perfect market drives economic profit and capital gains to zero. Keynsian economics has the idea of liquidity preference. Once the interest rate falls below liquidity preference people will simply hold onto money at 0% because they woild rather have their money immediately available than invested or lent out over the long term. This means the interest rate gets stuck in a positive range and profits can never truly fall to 0%. Keynes' idea was an attempt at reducing the real interest rate to 0% via constant inflation as he dismissed Silvio Gesell's proposal of directly adopting a negative interest rate on cash via his famous demurrage currency idea. Liquidity preference is a general concept that applies to almost every asset. However, Henry George discovered that land is kept empty when its yield is below the liquidity preference of the owner. The owner would rather sit and wait until an opportunity presents himself even though the plot of land that he is keeping away is needed to satisfy a basic human need: shelter.