Under the current system, the interest for loans comes from new loans. That's why M2 only goes up to the right, and any pause collapses the entire financial system.
That's a consequence of the debt/fiat system based on the fraud of usury, where banks charge interest to loan out money they don't have.
Imagining a Bitcoin standard is tough right now, because we're in a brief blip with Bitcoin rapidly appreciating in value as in gets monetized. Eventually that process slows down and stops. At that point Bitcoin deflates at the rate of economic growth. That's a lot slower than the current value appreciation. At that point loans become possible, as long as it's for a genuinely productive use that beats the overall rate of economic growth. Loans don't go away, but massive misallocation of capital does.
f0xr
npub1h3…uwlmn
2024-06-17 22:45:58
in reply to nevent1q…e5kt
Author Public Key
npub1h3kv6yar972dxetymty0t936p45utq7fj6p5rw7ly79jrafsnrjqvuwlmnPublished at
2024-06-17 22:45:58Event JSON
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"content": "Under the current system, the interest for loans comes from new loans. That's why M2 only goes up to the right, and any pause collapses the entire financial system. \n\nThat's a consequence of the debt/fiat system based on the fraud of usury, where banks charge interest to loan out money they don't have. \n\nImagining a Bitcoin standard is tough right now, because we're in a brief blip with Bitcoin rapidly appreciating in value as in gets monetized. Eventually that process slows down and stops. At that point Bitcoin deflates at the rate of economic growth. That's a lot slower than the current value appreciation. At that point loans become possible, as long as it's for a genuinely productive use that beats the overall rate of economic growth. Loans don't go away, but massive misallocation of capital does. ",
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