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|User Info||THE NATURE OF MONEY PART 2...; entered at 2010-11-03 11:01:12|
Registered: 2007-07-07 Cape Cod
Karl...you are so missing the point.|
One final example then I really must give up
Your cousin comes to you with an idea. He tells you how he will produce some product and sell it. You like the idea. He needs 10,000. You hand him $10,000 on the condition that he pay you back the $10,000 and in consideration of your risk, 10% of his profits for 10 years. You both agree. He launches his venture and is successful. He accumulates 10,000 above and beyond his costs. He pays you back. For the next 10 years he profits $10,000 each year and gives you $1,000 of it per your agreement. He is successful, you are happy, all is well.
Now do not get hung up on the semantics here...follow along.
There has been no interest in this deal. There has not been $1 more added to the money supply of the world you and your cousin live in. If there had been money interest involved more money would have had to be created which can only happen by the creation of more debt. His profits came because he took business from an inferior idea or consumers who chose his product over some other. The system remains steady state. No interest money was needed and no debt created money needed to pay back the loan. It is a closed and sustainable system vs one of usury where money has to be perpetually created by ever greater amounts of debt.
Just look at the charts you post!! Parabolic increases in debt all of them...why? Because of interest!! Parabolic increases cannot exist.
This really is my last attempt to explain this