The End Of Usury

niphtrique
By niphtrique on Sat, Apr 29, 2017 - 9:53am

The End Of Usury

http://www.naturalmoney.org/endofusury.html 

Are negative interest rates to be feared? Maybe not. Maybe they are wonderful. And maybe they are here to stay. Maybe you better get used to negative interest rates.

A few takes:

Why is it inevitable that interest rates go even lower, at least if our leaders act wisely? That is because a dynamic in the economy drives down interest rates. Several factors contribute to this dynamic. These factors are still in place and do not go away when interest rates reach zero. The most significant factor is the room for capital to grow. Interest rates on capital were higher than the economic growth rate for most of history. This is unsustainable in the long run.

It would be wise to allow interest rates to go even lower if that is where market forces push them. Lower interest rates make more projects economical so that there can be more capital and wealth. In this way lower interest rates can help to end poverty and make the economy sustainable. Lower interest rates are beneficial to most people. 80% of the people pay more interest than they receive. Interest is hidden in rents, taxes, and the price of everything we buy
 

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