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If this were true “by definition”, no bank would issue loans, no pension fund would buy bonds, and the only place you’d find landlords renting out homes are in
by sclarisse 3y ago
If this were true “by definition”, no bank would issue loans, no pension fund would buy bonds, and the only place you’d find landlords renting out homes are in cities with massive price appreciation. There would be absolutely no business occurring in Japan and “value investing” strategies would never have been imagined.
Growth is lucrative, but capitalism can put a price on finitude just fine.
- jacknews 3y agooh, so where do loans come from? They compare to govt money, which is constantly inflating, aka growing. growth is baked into the system.
- sclarisse 3y agoBank loans are tied to US government interest rates because borrowers are competing with the government to borrow money, not because the banks are relying on it in some economically fundamental way. (It might be fundamental to some bank’s business plan, especially in the moment, I’ll grant that.) Although I will admit, the only story in which the US government debt is anything other than insanely irresponsible, destined to become a millstone around our necks for decades to come? That one involves growth, and lots of it.