Quote:
Originally Posted by Catfish
Interest and interest on interest is the real killer of all, money that produces itself without connection to real goods, not backed up by anything, and the accompanying locust capitalism. Not even intended or planned (as you said about Mrs Thatcher who used the wrong tools to push the economy, but all going horribly wrong), but 'just happening'.
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That's not exactly how it's supposed to work. You give money to a bank and they give you interest (or at least they used too in times that seem long ago...
). Does that money they pay you come from nowhere? No, the bank either loans that money to someone for more interest than they pay you or invest into something that is supposed to return a profit. So it's not money out of nowhere. It's investing into something that will return a profit. The interest is compensation for parting with part of your money to enable other projects. The whole thing just starts to collapse when the money is invested and no return on investment is achieved....