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/biz/ - Business & Finance

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19858546 No.19858546 [Reply] [Original]

How is charging interest on loans legal?

That interest is literally debt that comes out of nowhere because it's not covered by money.

>> No.19858626

>heh hey kid wanna trade me $1200 for $1000?

>> No.19858665

>>19858546
it's covered by your future earnings
it's indentured servitude

>> No.19858846

>>19858665
It's debt for money that doesn't exist.

Only the government can make money.
If I loan you $100,000, and I charge interest towards an effective $120,000 repayment... then where is that extra $20K coming from?

You can't just say "well theres another $20K just out and about in the world, go earn it!"
What if there wasn't?
What if we were cavedudes and there were only €100,000 stonebux in existence. If we do the same loan, I get my €100,000 stonebux back but also "-€20,000" stonebux exists, which is what you owe me on interest but also what doesn't even exist. It requires the creation of €20,000 more stonebux.

This interest debt is literally the creation of money. It ought to be illegal for any lender to do this. It's literally why inflation occurs.

>> No.19858860
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19858860

>>19858846
Yes anon interest is why inflation exists, not the fact that the federal government prints literal trillions

>> No.19858901
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19858901

>>19858860
You need to keep printing money when fucking jews committing usury keep increasing the tab on what the total available amount of money is supposed to be.

>> No.19858911

>>19858546
>How is charging interest on loans legal?

Look at it from the perspective of the lender. They could put that money into risk-free assets and earn a given rate of return. Or they could put it into assets with the same risk-profile as the loan and earn more than the risk-free rate of return, say 3-5%

If I can get 3-5% by investing that capital elsewhere, why the fuck would I ask for anything less than 3-5% to lend that money to you? Time is quite literally money and the interest covers the opportunity cost forgone by the lender in giving the cash to you and not to some other productive endeavor.

>> No.19858942

>>19858546
Hey wow. Cool it with the antisemitic remarks.

>> No.19858958

>>19858546
Interest is a conversion of time and risk into dollars (omitting outright loansharking)

>> No.19858965

>>19858911
Currency exists to trade for goods.
Currency does not exist to trade for currency. You can't sell money. It defies the whole goddamned point of switching to currency instead of bartering with goods.

>> No.19858981
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19858981

>>19858965
>nOoooOOO you cant just trade currency for currency

>> No.19859000
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19859000

>>19858981
>$1000 = $1200

>> No.19859006

Because a dollar today is worth more than a dollar tomorrow. Why is this so hard for goyim to understand? You think I should just give you my money for a few years I exchange for nothing?

>> No.19859019

>>19858546
dude we're in 2020 not 2008 get over it

>> No.19859026

>>19858546
>how
because it wasnt made illegal
>out of nowhere
like all money

if people werent paid to loan, they wouldnt. and liquidity would evaporate destroying the entire financial system.
>also people (probably you) agreed to take this debt upon themselves willingly

>> No.19859050

>>19858846
>What if we were cavedudes and there were only €100,000 stonebux in existence.
Then that money is worth a whole lot more than $100,000

>> No.19859062

>>19859026
Yes loaning would probably be less common, but that actually wouldn't hurt anything. Besides jews.

>> No.19859086

Why would anyone give you money if they can't profit from it?

>> No.19859147

>>19859062
>less common
it would be non-existant
>wouldnt hurt anything
1997 tigers, 1998 russia, 2007 global

>> No.19859149

>>19858665
>>19858911
>>19858942
>>19858958
>>19859006
>>19859019
>>19859026
>>19859086
lookat the nosenbergs in this thread.

>> No.19859185

>>19858860
>printer memes
The Fed augments the money supply primarily by lending fake money to the treasury. They say it's M2 "broad money" for a reason, and the reason is that it's not real money.
Plus the larger problem with inflation, particularly asset inflation, is that banks are able to teleport money from the future to spend in the present by writing off unpaid debt as an asset to remain solvent and spend through fractional reserve.

>> No.19859200

Why would anyone lend their money out for free?

>> No.19859275

>>19858846
Interesting way to think about it, anon. Thanks.

>> No.19859404
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19859404

Why is money creation so esoteric?

>> No.19859476

>>19858846
Islamic banking has this covered:
>no loans for consumerism, only for property or investment
>no interest, they buy the house you want and then sell it to you with a slightly higher price so it is in their interest that you pay or they will be stuck with the house
>no investing in morally wrong things like prostitution, weapons or other damaging things

With the problem you present in your post, banks get their money from the central bank and when it comes to commercial consooomer loans there is enough money to go around to assume the borrower can earn more than what he was given. The lender must always consider the risk of not getting their money back, and lending when there is no more money in the world would be stupid

>> No.19859520

>>19859000
>1000 +1year =1200
Retard

>> No.19859954

>>19859520
You can't buy time.

Analgously, the jews have been persecuted in virtually every nation and kingdom across the world probably because of their proclivity for creating a specific kind of debt that devalues the currency.

>> No.19860110

>>19858846
Short of just making 20,000 more stonebux for yourself and having 120,000 stonebux now representing what 100,000 represented, assuming a physical standard like gold, what it would really mean is that the guy who "owes" you 20,000 stonebux in "interest" would have to become your slave and do 20,000 stonebux worth of labor or work to pay off it's value.

>> No.19860131

>>19858546
Because fiat currency literally comes out of noware.