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  • What are the pros and cons of credit unions?

    In a recent debate with a mutualist, we've been discussing credit unions and interest rates as "theft" in general. He believes that charging interest on loans is theft, except for simple transaction costs. In his mind, credit unions can then push down interst charged on loans dramatically...
    Posted to Economics Questions (Forum) by The One Freeman on Sun, Nov 25 2012
  • Re: Where does interest come from?

    I'm not saying you're wrong, but I have a few questions. 1.) If the capitalist only ever gets $1100 back, what is the point? That's what he started with so why keep getting the same amount? 2.) What is to stop the capitalist/bank from charging 50% interest? If they did that, would your example...
    Posted to Economics Questions (Forum) by ouchris on Tue, Apr 19 2011
  • Re: Inflation, interest rates, and bonds

    The bolded might help the most for your particular question, but these all provide great insight into what interest is and what it does, and how the manipulation of it affects the economy. Articles: The Phenomenon of Interest The Nature of Interest The Unlimited Power of Suppressing the Interest Rate...
    Posted to Economics Questions (Forum) by John James on Thu, Apr 14 2011
  • When the FED returns it's profits to the Treasury, what does the Treasury do with it?

    I know that the FED pays dividends to it's shareholders (banks) 6%. Question #1: Is it 6% per shareholder or do all the shareholders split that 6%? Question #2: Does "Profit" pertain only to the money the FED makes on interest - or also the money it "created" to buy the government...
    Posted to Economics Questions (Forum) by philjohnston on Fri, Oct 15 2010
  • What does FED do with the interest it earns?

    FED came into existance in 1913 for the purpose of controlling the money supply by lending to banks at higher or lower interest rates. I just read from wikipedia that this interest after expenses goes to the treasury. I think this interest must be a LOT. What does the treasury do with this amount? Case...
    Posted to Economics Questions (Forum) by Gautham Anil on Sun, Sep 5 2010
  • Am I saying this correctly? (Question on originary interest)

    Hello brilliant people. I would love to get your advice on the way that I'm wording the concept of originary interest and how it relates to credit expansion. Here's what I wrote down after reading HA today: "Originary interest, or the price spread between future goods and present goods becomes...
    Posted to Economics Questions (Forum) by Andy on Wed, Aug 25 2010
  • Sound Money Leads To Stagnant Economy?

    Hey guys, I have a question regarding sound money. I'm having an argument with someone who says that sound money would inhibit investment. Here's what the guy has to say: "A strong gold-backed currency, high interest rates and so on would make money so expensive that investment just wouldn't...
    Posted to Economics Questions (Forum) by SG875 on Thu, Jul 15 2010
  • Re: Interest rate: deflation, inflation

    [quote user="LibertarianfromGermany"] Am I the only one thinking that the reason the interest rate tends to stay above the inflation rate is because if it didn't (ie lending out would equal a loss in purchasing power) potential borrowers would just switch to commodities (i.e. gold) to at...
    Posted to Economics Questions (Forum) by onebornfree on Tue, Mar 23 2010
  • 100% reserve...where does new money come from?

    I have been in discussions with friends regarding 100% reserve banking and a commodity standard, and I was asked a question that seems simple but has me stumped. It's best to look at it in the form of a hypothetical situation: A country has a gold standard and practices %100 reserve banking (loan...
    Posted to Economics Questions (Forum) by Jonas on Mon, Oct 12 2009
  • Mini Interst Payments

    Wealth is exchanged on a daily basis without regards to compensation. Individuals exchange monetary assets for goods and services and then proceed to wait for the return of their change. While this process takes place there is a surplus and a deficit of wealth that remains stagnate. Let me offer an example...
    Posted to Economics Questions (Forum) by Jeremiah Dyke on Thu, Aug 13 2009
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