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10 sats \ 9 replies \ @LibertasBR 6 Jun \ on: Why Lending Money (at Interest) Is Not Usury in the Modern World econ
I understand that usury shouldn’t exist, especially not within the Bitcoin system.
You first have to define usury correctly. What is usury?
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Usury in our current system is the charging of interest. Banks take no real risk when extending credit, since they benefit from fractional reserve banking and freshly printed money — and on top of that, they still charge interest. It’s a completely unbalanced operation that, in my view, qualifies as usury and shouldn’t exist.
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What about time preference in your definition of usury and interest?
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What time preference do banks and governments have when they lend money backed by debit and that doesn’t even belong to them?
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Banks and governments do not derive the natural rate of interest! They arbitrarily create a number pulled out of thin air for their convenience and the convenience of their closest cronies. The time preference is determined by individuals.
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That’s exactly what I’ve been saying all along.
The time preference is determined by individuals.
Now, at this point, usury doesn’t seem entirely right to me either. What would be fairer, in my view, is to collateralize something proportional instead of charging interest.