Interest is prohibited in colourcash. Just for argument’s sake I will explain what reasons Capitalists use to raise interest. They assume there is growth (I’ll come back to this in a minute). With this growth you can invest your money in a profitable way... A typical example is the tree, because it grows and after x amount of time, the tree has grown y number of centimetres. Because it’s an apple tree, you will get always more and more apples and so you will have a profit. Money lenders lend you the money, so they couldn’t buy trees themselves. They missed the growth of the tree, and that is your fault, because borrowed the money. There you have it; interest is compensation for a missed income generated by property. Because there is nothing but growth.
But they miss one important thing: there is such a thing as wood rot. Worms plagues. Besides growth there is also decay. Death.
They had forgotten this for a minute. A collective brain malfunction you could call it. When a tree dies, it doesn’t produce any apples and more and so the investment is lost- This could happen to anyone. But not to the money lender, he has a guaranteed tariff of 7.6% interest per annum, whether the tree lives or dies. And when the tree dies, the borrower goes bust and has to leave his house, out in the street to give the lender some of his money back. The tree is cut down by the next investor to make space for a cooling cell to store Chilean apples...
I’m not saying interest is unreasonable, it’s irrational. Based on deceit. A big lie. That is why I refuse to borrow and I should stop lending... Shall I take all my money out of the bank?
The story of the last tenner is famous. It shows how money is created and how we get our sky high, never to be paid back debts.
Imagine a man shows up in a village where there is no money. He lends ten Euro to ten men. But, as interest, each of the men has to pay back 10% interest, so 11 Euro.
After a year 9 of the 10 men are able to repay those 11 Euro. But the tenth man only has one Euro. He’s a tenner short!
Guess how that’s possible? There were only 10 x 10 = 100 Euro emitted in the village. The ten men have to pay those back, plus interest. Interest at 10% over 100 Euro is 10 Euro. In total 110 Euro have to be paid back. However there were only 100 Euro in the village to begin with!
The last 10 Euro are the cause of the first bankruptcy. Say that the lender generously allows the village to pay back a year later. But then you pay 10% interest on 110 Euro, because that is the amount owed after 1 year. Can you predict if the man will have the money year later?