The cost of interest

[Comrade Buka]

Had the following conversation 
with a national economist today:

- If every debt has a creditor 
and thus every debt is balanced, 
what about the cost of interest?
Where will the money to pay the
interest come from?

- Economic growth.

- In a world with finite resources,
where will this perpetual growth come from?

- That is what economists are trying 
to figure out. With little success...

 

[SWP's back]

No you didn't.

 

[without a dream]

I'm no expert, but the economy isn't a closed system is it? Money can be added i.e. quantative easing.

On the finite resources aspect, it depends how you look at the resources. If you look at them as we see them now, fossil fuels etc. Then yes they're limited but you can't create or destroy matter. There are companies now than can make hydrocarbons using wind power as the input energy albeit on a small scale.

 

[TCIB]

My whole ethos on fixing it relies on tangible produce, aka make shit.

To much is it or info based now.

I emailed Cameron telling him why i am out asap with my company and some tool replied with a very sterile reoly expressing regret.

This is the issue, these people should bend over backwards to keep guys like me or other small business owners.
Not shrug it off as a nothing.

The governments whole ethos and indeed politicians in general are self obsessed and the whole lot need punching and ripping from their mounts.

The country will never fix it's self as it is.

 

[andy h]

Surely the answer to the OP is "you mug somebody" be that an individual, a company or a nation/state. Don't you strengthen your economy by getting someone else's money (another country) into your pot through investment?

 

[Comrade Buka]

Surely the answer to the OP is "you mug somebody" be that an individual, a company or a nation/state. Don't you strengthen your economy by getting someone else's money (another country) into your pot through investment?

We've already been doing that for a long time. But everything has a limit.

The economist I spoke to talked about the paradigm shift we are facing.

1750-1930 laissez fare 1.0. Goal being market efficiency.
Ending in the Great Depression.
1930-1945 Paradigm shift
1945-1970 Keynes 1.0 Goals employment and international stability
1970-1980 Paradigm shift
1980-2008 Laissez fare 2.0 Goals price stability and market efficiency
2008- ? High unemployment, high national and personal debt, extremism, social instability

Even the economists understand time for change has come. Sustainable change.

One interesting thing he mentioned as well was that bailing out Greece, is not about saving Greece, but saving major French and German banks. Too big to fail. If they fall, we have another Lehman Brothers disaster. They are all interconnected, the banks.

 

[Timmmmahhhh]

No you didn't.

I don't understand any of what the OP meant, but I am going to agree with SWP on this one.

Backing the right horse early.

 

[BWTAC]

I read this as The Loss of Interest.

 

[Dextersmate]

Wonga.com,capitalism at its best.

 

[Damocles]

No you didn't.

I'm betting on this. There's a movie called Zeitgeist: Addendum with very similar themes/questions and he probably just watched that.