Re: Third Worlder on Free Markets

From: Technotranscendence (neptune@mars.superlink.net)
Date: Wed Oct 17 2001 - 09:01:02 MDT


On Monday, October 15, 2001 6:46 AM Robert J. Bradbury bradbury@aeiveos.com
wrote:
> One would have to develop a totally different model of development
> where one avoided the concept of "interest". The only things that
> I can think of would be something like a credit union or a co-op
> where everyone participating would pay in a certain monthly amount
> and have access to a certain amount of capital.

But this would be the "moral equivalent" of interest rates, no? I.e., it
would be interest rates by another name.

Which reminds me, I once met a loan shark. His business did not match the
Hollywood stereotype of a loan shark. Instead, he operated by charging a
legal interest rate for loans, then adding other services -- which he
charged for -- into the mix. This worked just like a "usurous" interest
rate. I estimated his debtors were paying somewhere around 30 or 40%
interest on loans.

Also, his goal was not to break anyone's legs or drain his customers of all
money. Instead, people who came to him couldn't get money elsewhere. He
provided that to them, BUT took extra measures to protect his investment.
In fact, he did not have any enforcers. Everything he did was legal.

Cheers!

Daniel Ust
http://uweb.superlink.net/neptune/
    Please visit:
http://antiwar.com/



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