Comment: Sorry

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In reply to comment: I understand (see in situ)


Sorry, but this is simply faulty economics. Sure, when we are discussing the Federal Reserve which literally creates money out of nothing and then charges interest on that money. That is understood.

But in free market banking, which I agree we have nothing resembling, interest is an absolutely vital function. The rate of interest is dependent upon the amount of savings a bank has, and is determined by market forces.

If I take out $100 loan to start my business and pay back $110 when my business takes off,how was there "not enough money in the system".

It has nothing to do with "money in the system", but how investors and savers interact through money.
*Advancing the Ideas of Liberty Daily*