There is no difference between a bank lending money for interest, and lending based on fractional reserves.
Where do you think growth in the economy comes from?
If you were to average all the failed business startups, do you think economic growth could ever outstrip the interest rates banks charge on loans? No, it could not. It only does so because banks engage in fractional reserve lending. This is the greatest source of economic growth we have.
Moreover, you and I can freely lend money to and from each other, correct? Freedom of contract, right? And nobody owns your money, or my money, but us, and we can agree to the terms, right? Well, if I don't mind if you use that money for productive purposes (As if this is going to hurt me, or be socially damaging...) while I lend it to you... if I know the terms and conditions, exactly what is your beef with people doing this?
You're being fooled by the fact that the gov't has taken a role here, which would be covered by the marketplace anyway if the government weren't there.
READ THIS ON FRACTIONAL RESERVE & FREE-MARKET BANKING (http://www.livejournal.com/talkread.bml?journal=faustin&itemid=10406)
no subject
Where do you think growth in the economy comes from?
If you were to average all the failed business startups, do you think economic growth could ever outstrip the interest rates banks charge on loans? No, it could not. It only does so because banks engage in fractional reserve lending. This is the greatest source of economic growth we have.
Moreover, you and I can freely lend money to and from each other, correct? Freedom of contract, right? And nobody owns your money, or my money, but us, and we can agree to the terms, right? Well, if I don't mind if you use that money for productive purposes (As if this is going to hurt me, or be socially damaging...) while I lend it to you... if I know the terms and conditions, exactly what is your beef with people doing this?
You're being fooled by the fact that the gov't has taken a role here, which would be covered by the marketplace anyway if the government weren't there.
READ THIS ON FRACTIONAL RESERVE & FREE-MARKET BANKING (http://www.livejournal.com/talkread.bml?journal=faustin&itemid=10406)