[MD] No more SOM and no more money!

[David M]

Hi Craig

Everything then except money suffers the 2nd law of thermodynamics
just to keep the rich in their riches without lifting a finger.

How about a moral justification?

David M

----- Original Message ----- 
From: <craigerb at comcast.net>
To: <moq_discuss at moqtalk.org>
Sent: Monday, November 20, 2006 4:40 AM
Subject: [MD] No more SOM and no more money!


> [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
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