Financiers, dislike equity investors, seek to avoid uncertainty and lend against existing cash flows or earnings, taking security in case these flows are lost for some reason.
Therein financiers require less return than equity investors and do. It enjoy any upside, only receiving the stipulated interest and principal in return, even if having to enforce security.
So if security is not available due to a ban, loans for personal use or small to medium business may disappear, as their cash flows or earnings are less certain that day major corporations. This the effect would be that loans would only be available to corporations.
A borrower enjoys the benefit of having much higher capital at lower cost than equity to achieve their goals. Typically in society banks provide this service transferring wealth from the old to the young to build wealth.
A lender will not lend if they think the borrower does not have sufficient money generation to repay the loan. It is logical not to want to lose your capital.
Therefore a loan that will be spent purely on consumption (not productive) and the borrower has no other source of earnings will not be made.
It may be a high cost under a sound money standard, but if the lender and borrower mutually agree to the price, shouldn’t it be allowed and considered moral?
Even more moral in that the high cost would be a high barrier or disincentive signal that a borrower would have to weigh up.
This is on the assumption both parties are well informed and reasonable people.
I do not think many people would want to lend their gold for 10 years at risk of non-payment for no return in excess of simply holding it themselves at no risk.
It is immoral for governments to intervene in the market, creating these distortions in hat hurt people in the end.
That’s why student loans should not be forgiven, send an immoral signal to the market and others pile in thinking it will be written off. Unfair and unjust to the worker that did not attend university weighing up the costs to do so.
If the world decides it is immoral to give people loans for learning or consumption because they have to pay interest, so be it, but many will be the poorer for it.
Remember, a loan is someone else’s money/capital and one should respect that and pay it back with due compensation for the risk and time it was given.
But then, no one could even get a lone for something they might need to consume.
Why should a lender give the loan even if secured if there is no compensation?
The lender certainly does not expect to need to go to the hassle of enforcing the security of which it’s value may have also fallen.
I prefer a world where I could get a loan to buy that thing even if there is a price I must pay the lender for the option.
It worked on their sons.
Men’s attraction to women that have the highest chance of bearing children naturally (18-30 year olds) is not going to change.
It is observed, instead of marriage only incentivizing both men and women to be together by halving living costs, for men (usually) the potential earth shattering divorce costs are now a major disincentive to enter such an arrangement.
This is likely part of the reason marriage has become less popular.
The exercise that there is never time for…
Democracy is majority voted politicians rule, essentially mob rule.
A Republic is majority vote restricted by geography/State, hence ensuring minority areas are equally represented, essentially protecting the minority voice or maintaining diversity of thought.
The US is a Republic because it is based on Individualist philosophy, the individual being the smallest minority.
📰📰📰 #BTC #News #Alert 📰📰📰
BlackRock suspected to own $3B Bitcoin wallet, while this new Bitcoin fork gets ready to skyrocket - - CryptoNewsZ
Source: https://tinyurl.com/2388u8yx
Doesn’t sound as good as Bitcoin:
“The Proof of Process (PoP) mechanism combines the advantages of PoW and PoS to enhance security and scalability while maintaining true decentralization.”
PoW and PoS? 🤔
Trump: The Leader Of A Faction Or A Party?
https://www.zerohedge.com/political/trump-leader-faction-or-party
Leader of a nation.
Knew this was going to happen.