Growth..Japanese banks charge zero interest .. Archived Message
Posted by Shyaku on September 2, 2020, 3:33 pm, in reply to "Re: 'Slow rot' = zero growth, but an economy doesn't need to grow when population is not .."
Growth is just what you need to repay interest when all new money in the economy is created as debt with interest that must be repaid: You need 1.05 times the size of the economy just to repay it all. Such growth is essentially impossible to achieve without expropriation from outside the economy. The system was designed in the 16th centiry to fund expropriation, and as you say, created such concentrated wealth in the banking sector that nobody had the power to put an end to it. The reason the Japanese don't need growth to maintain their standard of living is that their banks lend into the economy at zero interest. By the way, ours do now, but the evil deed (concentrated wealth and power) is already done.
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