[MD] No more SOM and no more money!

[craigerb at comcast.net]

[David M]
What is the justification for charging interest?

Risk:  I lend $100 to 11 people.  I know there'll be one person who won't/can't pay me back   Therefore, I require $110 from each of the ten who will pay back, so that my original $1100 is restored.
Inflation: $100 will buy me a new suit now.  I lend $100 to someone but require them to pay
back $110 because that's what that suit will cost (because of inflation) later when they will pay
me back. 
Forebearance:  I lend $100 to someone.  While they have the use of my money, a $110 suit I want briefly goes on sale for $100.  I require them to pay back $110 because that's what that suit will cost (because the sale ends) later when they will pay me back.
Inflation = Risk + Inflation + Forebearance
That's my riff on interest.  (In memoriam: Milton Friedman, 1912-2006)
Craig