Quote:
Originally Posted by guerilla
There is another option. Instead of a fixed rate of return, you make an investment and profit from it. You buy into a company, and you receive dividends on your capital investment. If the company does well, you do well. If the company does poorly, you don't get a return.
That is how it was done in the day.
The only reason we don't do it that way anymore and conform to the interest model instead, is that the banks issue all of the credit in the economy. They are allowed to "print" money out of thin air, and no private capital holder can compete with the superpower of legal counterfeit.
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That's a wonderful dream ... but you're still creating wealth out of nothing. Investing is not a physical product and it is not labor capital (like tilling a field). You will still have a buildup of speculative wealth which eventually surpasses real wealth and creates the need for a crash (or reset of the system).
There ARE things that make the problem worse, like FRB and debt currency, but you can take away all those things, and there's still the fundamental problem of usury.
Even a barter society won't get rid of usury. If I'm trading 2 chickens for a bushel of hay, but you don't have hay right now ... we might cut a deal that says I'll give you the 2 chickens NOW for a 1.5 bushels of hay 6 months from now. That's usury. That's creating wealth from nothing tangible. Plus, no trade is equal for both sides. And if you make more trades that favor you than the next guy, then again, you're creating wealth from nothing.
The reality is this. Economies must expand and contract. If the global economy tanks it will suck. But it woulda sucked less if they let it fail 20 years ago. And it's gonna suck more if they keep it alive for another 20 years.
You can talk all you want about making a fairer system, but you can never change the fundamental physics of the system to get rid of speculative wealth. You can only navigate the ups and downs skillfully.
And if you don't, someone else will.