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[–] FreeSpeechForever 0 points 1 point (+1|-0) ago 

The only caveat is that time has value. Capital today is worth more than capital tomorrow, but the current amount of interest on loans far exceeds these measures.

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[–] Rellik88 0 points 1 point (+1|-0) ago 

Currency loaned for interest immediately debases the borrowed currency due to the interest being magically created into the same system.

The interest has to be paid in real money. That loan they gave is what's fake. They created the principle out of thin air, which real money has to be paid for interest.

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[–] prairie ago 

Banks crate currency. But an individual loaning actual money they hold and charging interest is different.

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[–] Post-Goat 0 points 1 point (+1|-0) ago 

What if you took out a loan and bought Bitcoin? The interest devalues the fiat currency which is hedged by the decentralised currency?

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[–] Empire_of_the_mind ago 

the value of bitcoin is irrelevant at this point in time. you are in the "distribution period" - in essence, bitcoin is like the Euro prior to when it actually went live (2002 IIRC).

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[–] daskapitalist ago 

What if I dont want equity?

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[–] virge [S] ago 

Then you'll have to learn how to make money like normal, non-parasites.

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[–] prairie ago  (edited ago)

How does interest create new currency? Imagine if the loan didn't involve any money, just labor: I'll do this work for you over the next week if you do the same in return a year from now, plus an extra day of work. No money at all, but still interest.

Interest is just recognition that things now are often more valuable than things in the future, because of the benefits they provide over time.

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[–] 0100100-100110 ago 

I lived in the middle east for a few years. Interest rates didn't exist. Instead it was tied into the price of the object. Paying in full have the cheapest price, the longer you wanted to make payments the more expensive the item became.

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[–] prairie ago 

So interest, just implicit.

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[–] whyamIevenhere 1 point 0 points (+1|-1) ago  (edited ago)

Didn't realize this site was all Muslims and commies. Holy shit, you're all economic retards. Lost a lot of respect for voat over the last two days.

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[–] 64544259864775774431 ago 

So what happens if you make a loan and no product is ever produced? What if it's to start a plumbing business?

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[–] virge [S] ago 

Plumbing business produces profit. Profit is used to pay loan/investment. This isn't a complicated principal.

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[–] 64544259864775774431 ago 

But OP says no money interest. I'm supposed to loan money at a loss? Who would do that?

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