charging interest in a system with a gold standard

[MMMark]

Sat. 12/06/30 18:08 EDT
.post #187
[url=charging interest in a system with a gold standard - #11 by copycat042]

@copycat042

[/url]… the interest that is charged on the money comes from some third party that trades with the borrower?

Yes.

The borrower, in order to generate more money than he borrowed (so as to pay back the principle PLUS the interest), ultimately uses the money he borrowed to generate a good or service which he then trades with another person or other persons for more money than what he spent generating that good or service.

Edit:

So, the “extra money” (the interest) is just money that already existed in the hands of the borrower’s customers. The customers willingly gave up some of that money because they wanted the good or service they purchased more than they wanted the money they gave up.