Even when the note is not directly bought or sold or used as collateral, it is treated as an asset in business valuation etc.
My point is: when you accept the premise that some value has been created by merely signing a promise, that "something from nothing" we call interest enters the market and competes with the real value of work.
Risk/time does not justify it. Future time and outcomes are not things that you possess today and should not compete with the work that has been done and measured by transactions in an unbroken chain.
Productivity does not cover it either. Aggregate claims will exceed the monetary based of hard money by definition, unless defaults wipe them out. (This is why I keep asking where the "extra" comes from. And why jubilee or periodic market crashes are unavoidable.)
Debt with interest must
- cause valuation inflation
- cause market distortion
- and require enforcement
Describing the mechanics of a two party loan with the word "just" attached to it doesn't make this go away. It's not a closed system.
My point is: when you accept the premise that some value has been created by merely signing a promise, that "something from nothing" we call interest enters the market and competes with the real value of work.
Risk/time does not justify it. Future time and outcomes are not things that you possess today and should not compete with the work that has been done and measured by transactions in an unbroken chain.
Productivity does not cover it either. Aggregate claims will exceed the monetary based of hard money by definition, unless defaults wipe them out. (This is why I keep asking where the "extra" comes from. And why jubilee or periodic market crashes are unavoidable.)
Debt with interest must
- cause valuation inflation
- cause market distortion
- and require enforcement
Describing the mechanics of a two party loan with the word "just" attached to it doesn't make this go away. It's not a closed system.
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