Recent content by rebeLemming

I understand that it would be practically impossible to legally prevent lenders from charging interest. But wouldn't it make for a more efficient economy as a whole? Doesn't the mechanism of compound interest increase the risk of debt defaulting, and thus amount to a deadweight loss overall...

But it is a return that is not directly linked to the return that the borrower recieves if the loan leads to him increasing his income, for example if his or her new business takes off. I was just theorising that if banks or other lenders are dependent on the efficient use of the money they...

Quite possibly.. But wouldn't introducing a stronger chain of risk and reward encourage a more responsible credit creation culture? I mean, if banks are rewarded for lending according to the relative economic growth resulting from that loan, isn't there the basis for an inherently stable...

I have read about the prediction that if things continue as they are going, the interest payments on US foreign debt will soon exceed the GDP of the entire country. Surely, if and when that happens, the global economy will go into meltdown. So, correct me if I'm wrong, but it seems obvious...