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.
[–] 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.
[–] whyamIevenhere 1 point 0 points 1 point (+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.
[–] FreeSpeechForever 0 points 1 point 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.
[–] superspathi 0 points 3 points 3 points (+3|-0) ago
That's not logical or desirable. I wouldn't take out a mortgage if it meant the lender was getting an ownership stake in the property.
It's only not logical in your current brainwashed slave state. You actually like being a serf?
Educate yourself on the Greenback. Literally Government money given, interest-free, for Ameircans to live their lives. Your mortgage lender would be the Government using it's own currency (which today it does not have, we have a foreign banking mafia controlling our currency) and you would repay the full amount of the loan without interest.
Wake the fuck up.
[–] superspathi 0 points 2 points 2 points (+2|-0) ago
Oh that's even worse. The government is the only mortgage lender? Get the fuck out of here with that retarded faggotry.
Just because you want to gas kikes doesn't mean you understand economics you fucking nigger
So what happens if you make a loan and no product is ever produced? What if it's to start a plumbing business?
[–] daskapitalist ago
What if I dont want equity?
[–] virge [S] ago
Then you'll have to learn how to make money like normal, non-parasites.