In human health, all sorts of nasty bugs are present at any time, but it is when one's immune system is down that the disease takes over and the person gets sick or even dies.
In Italy we have a real time play of how usury happens and what it does to the body politic. In this article, 450,000 businesses shut down for a loss of 300,000 jobs. (The discrepancy is likely due to sole proprietors are not employees, so this emphasizes that these are small businesses.)
According to this mainstream article, the culprit is inability to get access to loans. The story reports although loan sharking is on the rise, complaints among victims is is decreasing. Is this a sign of desperation? It would make for a good study.
What do we know about usury? It is made possible by fraud: only with the fractional reserve lending of money, which mestasizes into the fractional reserve lending of credit do we subsequently get an excess capacity for credit.
This excess capacity of credit distorts the natural market, and borrowing to finance anything becomes a rather risky proposition, since the very medium that reports prices, that is money, is no longer reporting accurately. We cannot know what a reliable price is, and thus economic calculations are dicey.
Normally a business is opened to serve a customer. If credit is cheap and easy, then businesses can open without customers, or customers can be had for below cost, since the price of money is subsidized by state action. Talk of "burn rate" or "hockey stick sales growth" which was once the narrative of a Charlie Manson parole hearing, become common chatter in the boardroom.
Small businesses that opened without the foundation of a solid customer base find themselves unable to survive when the cheap supply of credit dries up, or usury rates rise.
Now, the "criminal class" lends money out at usury and finishes off the people who took risky loans. That is what we see in Italy today.
The damage is done during the boom, when so many people make so many economic decisions based on faulty economic signals,e specially money. So should usury be outlawed? It was, and it did no good. The problem occurred when we allowed the state to emerge. It first outlawed, and then regulated, and then took control of usury. To our universal distress. Usury is just one example of how the state harms us. The problem is with people clamoring for state control, instead of submitting to the will of God.
,Please feel free to share this post with three of your friends.
In Italy we have a real time play of how usury happens and what it does to the body politic. In this article, 450,000 businesses shut down for a loss of 300,000 jobs. (The discrepancy is likely due to sole proprietors are not employees, so this emphasizes that these are small businesses.)
According to this mainstream article, the culprit is inability to get access to loans. The story reports although loan sharking is on the rise, complaints among victims is is decreasing. Is this a sign of desperation? It would make for a good study.
What do we know about usury? It is made possible by fraud: only with the fractional reserve lending of money, which mestasizes into the fractional reserve lending of credit do we subsequently get an excess capacity for credit.
This excess capacity of credit distorts the natural market, and borrowing to finance anything becomes a rather risky proposition, since the very medium that reports prices, that is money, is no longer reporting accurately. We cannot know what a reliable price is, and thus economic calculations are dicey.
Normally a business is opened to serve a customer. If credit is cheap and easy, then businesses can open without customers, or customers can be had for below cost, since the price of money is subsidized by state action. Talk of "burn rate" or "hockey stick sales growth" which was once the narrative of a Charlie Manson parole hearing, become common chatter in the boardroom.
Small businesses that opened without the foundation of a solid customer base find themselves unable to survive when the cheap supply of credit dries up, or usury rates rise.
Now, the "criminal class" lends money out at usury and finishes off the people who took risky loans. That is what we see in Italy today.
The damage is done during the boom, when so many people make so many economic decisions based on faulty economic signals,e specially money. So should usury be outlawed? It was, and it did no good. The problem occurred when we allowed the state to emerge. It first outlawed, and then regulated, and then took control of usury. To our universal distress. Usury is just one example of how the state harms us. The problem is with people clamoring for state control, instead of submitting to the will of God.
,Please feel free to share this post with three of your friends.
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