As I understand it: and correct me if i am wrong, but im a system developer and ALL applications deal explicitly with numeric values and logic is bread and butter, but not finance:
In a double entry system. System begins without money and EVERYTHING is essencially zero sum...
> 0 = 1000 -1000
> account 1 Debit 1000
> account 2 Credit 1000
The legitimacy of this in essences is that once account 1 pays back DEBT, the Creditors (Negative values) associated variables are literally negated. (More effectively than positron-electron pairs, but lets leave that out because ENERGY exists in physics where it doesnt in logic. Footnote: energy... important.
Its just the same as a personal realtionship.
You start off on equal footing...
Someone... wont say who... attains a favor.
These favors are apparently standardised and represented by a value proposition (lets ignore moral propositions) between the parties by "agreed values" assuming theres agreement of the trade doesnt occur; and one part grants the time, energy, property bias (call it 3 "cars" for a "loaf of bread" bias, its the difference that facilitates the trade, not the total, that is recorded to the other...
This is Tracked... by the "literally recorded" value proposition system, employed to "Ideally" return the "agreed" and relative to other value propositions, bias, that burdened or otherwise cost or otherwise subtracted from the giver/creditors/now-hungry value and apparently equally advantaged, benefited or assisted the borrower/debtor/no-longer-starving partly...
So..
Why is their this "interest".
How is this non-zero apparently entity accounted for?
Its the third bookkeeper to exist...
The booky that actually gives the guarantee this eill all work out... and.. for-how-what hu?....
The reserve bank, lets cut to the chace.. these guys dont "create" anything.
They have books too...
They identify that governments exist to perform "value and moral proposition" - based, cost-benefit amalysis, and support the (whatever system, they dont care...) of government employed in said state..
Lets call it consitutitional morality, democratic leadership and and capitalist value propositions.. where it could be based on niche elite groups, biased favouritism and abhorently-unfair morality.
The REAL value of all this is: if someone can help someone, and the sum of that assistance once paid back, is in any way better than help not being provided, that is GOOD. It favours the participants. Whom the central tracking system facilitates by enabling the relative balamces to float between participants.
Why interest...
Because SOMEONE is legitimising a grand total DEBT leger, on behalf of the government.
Its saying that the govenment interest %etc.. is required to be repaid. Calculated as a valie that actually counts towards the total debt, that lends the "system" to otherwise have prodided a "Positive general account bias" within the community.
This incentivises people to hold and obtain the surplus, when healthy and able to identify trades that (ideally overall help) and grant them a positive bias.
This incentivises the taking of debt due to an inflationary environment (as the central banks overall negative balance sheet is assessed for its numeric size, and it gives the money to governments to spend based on approved budgets and in so doing hols itself a negative number.. the interest.. is a measure of the relative economic value of the numbers and serves to adjust the bias betseen the debtors and creditors balance sheets, where.. they exist in the system AS a creditor... as interest is paid the double entry system eliminates tge interest also. This interest is like saying..
Ill lend you a sandwitch, but i want 2 in return...
At which point... 1 sandwitch is manifest from nowhere and given to you...
You survive to be able to grow and provide a day for us tk sit and have lunch and someone comes with 2 coffees and were all just doing great..
Debt eliminated.
That second sandwitch tho...
Its on the first persons books.
The double entry accounts for the interest as its an expansion value on both sides as time passes.
0 =1050 -1050 after 1year month at 5%..
It should match inflation of circulating money.
Somewhere behind this curtain i sence theres a Benefit of governments having capacity to spend the newly created money first... BUT.
This is negated by budget details sharing and disclosure, as ANTICIPATED future monetary pklicy and the systems parameters are know to the population before the money is spent...
So the insider knowlege is actually where the bias is.. and THAT.. is where the corruption is morr likely to lay.
Where is the interest supposed to come from tho.. look around. If you have debt.. then someone has the credit.. And if you have the credit, someone has the debt...
If the value of your debt goes up because of interest.. so the the same relative societial actions required to pay it back... (inflationary >interest rate balance should do this in functioning economy)
If I lend you a tree that bears 1 apple per day for the cost of... 2 apples per day...
Then you had bettwe be making 1 apple pie you can see for 2 apples at least.. to pay me back.
Otherwise... why borrow the tree...
If it withers and dies.. you have made a poor choise.
Inflation.. should eat that up slightly if the tree was expensive and the interest was low...
If interest is high.. dont take risks... identify those that can do good things with hat you can give and ffs.. charge equivelant interest yourself....
IMO.... All potentially a delusion of one stacker pirate... all fictional characters not mentioned are strictly virtual, no sandwitches were harmed in the making of this stab in the dark. Its just how i see it.
