Oct 28, 2019, 1:23 PM
Interest vs Usury.
Interest is necessary for the organization of complex production. it is beneficial for production of generations. It is risky for the purpose of consumption. It is harmful for the production of entertainment. It is very harmful for the production of anti-social behaviors.
What demarcates Interest from Usury?
(a) credit for consumption rather than production.
(b) borrower beware rather than lender beware.
If lending is limited to production, lender risk, and un-recoverability for anything other than fraud, then it’s shared risk. And it increases use of stock markets where access to liquidity is possible instead of collateral recovery.
The enemy’s technique consists of false promise, baiting in to moral hazard, pilpul, critique, and profiting from capture of hazards, and capitalizing those captures as systems of rents.
Usury is the most common example of baiting into hazard, by the extension of credit for the purpose of consumption, the use of collateral, and the use of the court to transfer assets to the lender.
The enemy’s technique uses every possible means of baiting into hazard, defending this bait by pilpul and critique, profiting from the hazard – both private and public – then taking the accumulated capital and seeking rents against the population until they revolt and prosecute their revenge. …
There is a reason this technique works with high trust europeans but not elsewhere. There is a reason it works with women and underclasses but not established men. Because our democracy makes us vulnerable to false promise, and the underclasses are easily baited by false promise, we are tolerant of meritocracy until too late.
Worse, it is easiest to exploit our social order of MARKETS and LAGGING legal codes in defense of those markets and our people. And lagging technology for replacing each of the means of parasitism: financial, commercial, educational, informational, political, social, normative, and traditional