3 ms·
I find it interesting that some religions forbid interest in loans. I think they are into something as it's evil to first lend someone money at say 2%, then inc
by z3t4 4y ago
I find it interesting that some religions forbid interest in loans. I think they are into something as it's evil to first lend someone money at say 2%, then increase it to 4% interest. Inflation is created by "printing" more money, usually when a bank issue a loan "new" money is created. This "new" money leads to increasing prices aka inflation.
Almost all goods on the market today are auto-made by robots in a factory, meaning it almost doesn't cost anything to produce, and the prices for goods are solely determined by how much people are willing to pay. People are willing to pay 2x for a house, but not 2x for a good. Then at some random point in time news sites starts to print articles about inflation (maybe because of a temporary shortage in some raw material) and sellers of goods decide it's a good time to increase prices, because people are now willing to pay more due to "inflation". This freaks out people who has lended money to others and starts to liquefy their assets. This causes inflated prices to go down. It's self correcting. But then there's interest rates that is just evil as it screws with the economy.