Search results

We as a a society have an incentive to create an efficient barter system. We as a society would have a government (who works for us) regulated barter agency that makes sure the barter dollars mean something by enforcing asset seizures and possibly charges depending on severity (if fraudulent)...

There is no borrowing of foreign credit it would just be a way to regulate a barter system. Japan is most likely choking up the supply of the %0.4 percent loans otherwise they would see significant growth in production. Their inflation is at %0 right now so they are only lending to the...

If everyone switched to a barter system everything would start right back up. If there was a trusted organization to appraise assets, credit ratings and give zero percent term loans the economy would start right back up. They would also need to be able to enforce the loans through asset...

When I wrote that I was thinking of my Grandfather so it would be more like the 50's. He was a plumber with a wife and 2 kids. He had the same equivalent of all the toys we have now for that era. Now the wife would also need to work to have that life. That is pretty subjective though. I have...

Answer this question for me. When everything starts collapsing like it is now and lets say hypothetically it becomes a depression. Why do people stop working and go hungry. People could start some sort of barter system in a community. Our production capacity does not disappear because there...

You never stated if any other money was lent out. The problem with what you are saying and with our economy is that there is $100 dollars in circulation and $105 owed. If only a $100 exists you could not pay back $105. Banks do not spend money they lend it out. In our system that 5...

All money comes from a bank on average the difference between interest an inflation is %1. So you gain %4 and lose %5. The difference is how much less the dollar would be worth every year on average. This is mitigated by a trade surplus where you are bringing in more money from outside the...

Interest causes our money to be worth less because it gains %4 inflation and costs %5 this equals out to the money being worth 1% less on average leading to rising costs for everyone. If someone makes %4 through wheeling and dealing they are taking it from someone else who now has %5 less...

The average inflation across the entire nation is caused by interest in the way I posted before.

All money at some point in time came from a bank so on average it causes a loss.

You are right but as I said in my previous post on average everyone loses the difference between the inflation and interest.

Sorry I misread it. Their are ways to make money of interest but on average everyone loses the difference between inflation and interest. If you took all the houses in the country their price would go up go up %4 but they would all pay %5 a net loss of %1. Over around 70 years that starts to...

Interest does drive inflation because when you make a loan your money is worth less since you have to pay the interest.

You are wrong I already stated how interest creates inflation.If I got a capital loan on a house worth $100,000 and payed the interest immediately I would have roughly $95,000. My money has just lost %5 of it's purchasing power which is the same as the cost of the good going up. If there was...

%90 of people do not have 2 houses so that does not work out for the majority. If there were no interest wealth would be gained through efficiencies. Before Ford created the assembly line it probably took twice as many man hours to build a car. If their was no interest then the price of cars...

Since they can take the house if I do not pay or put me in jail I do think that the risk vs reward for banks is reasonable. In order for the risk reward to be right they should make around %5 profit since their are huge sums of money being lent. In order for them to make %5 that would mean that...

No you are misunderstanding what I am saying. Their would be an institution that would basically print money. They could only print money if you were qualified like today. If you defaulted there would be asset seizures or charges laid They could only print money for those 2 reasons. There would...

All I know is that my house would require half the labor to pay off and that the cost of most goods would drop.

No it would have to be a economic reform that people want to put into effect in great numbers.

No all I accept is that I pay $550,000 dollars for a $250,000 dollar house. That is proof to me.