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At least inflation has to be added, and that's without calculating any risk. Otherwise I'll borrow from you $100K and return it 30 years later
by bsullivan01 13y ago
At least inflation has to be added, and that's without calculating any risk. Otherwise I'll borrow from you $100K and return it 30 years later
- harrytuttle 13y agoNot really. a) growth isn't required in all economic models so inflation isn't necessarily valid. b) goods and services are perfectly good interest. Not that you'd have to borrow it if interest wasn't profitable (it would drive asset value down). c) risk is irrelevant if lending isn't required. you're too in the bank and growth model mindset. It doesn't work like that everywhere.
- venomsnake 13y agoDepends. The money in the current system is created with debt. If you remove it than it may lead to some interesting stuff.
- hansjorg 13y agoI think usury refers to 'excessive and immoral' rates in this context.