[ExI] Micro-loan programs not as successful as hoped

[Samantha Atkins]

On Nov 22, 2010, at 9:00 AM, Stefano Vaj wrote:

> 2010/11/22 Mr Jones <mrjones2020 at gmail.com>
>> From what I've been told,the 'high' interest rates are 'low' when compared to typical rates paid in these corruption riddled areas. All the same, I think It's wrong.
> 
> Let me say first that I am a fan of the views expounded in things such
> as Money as Debt, and very little of bankers.

The one gripe I have with the money is debt crowd is not that money as currently created is debt.  I agree that combined with fractional reserves is a pretty bad idea.   Unfortunately though, many in this camp seem to assume everything would be a-ok if the government just printed its on money at will whenever it felt a bit pinched.   This is the road to unlimited inflation.  At least seeing new money as debt incurred slows that down a little bit.  I would generally have little problem with newly created money being seen as a debt if it was not instantly multiplied by fractional reserve banking.   Ad hoc creation of new money is either out-right counterfeiting or it is something that should have a price that is considered at time of creation.  It has nothing to do with the bankers who may receive the interest per se but with being honest about what one is doing. 

> 
> OTOH, if we accept the idea that loans for an interest are the right
> way to deal with matter, interest rates cannot really be "right" or
> "wrong", provided that no oligopoly exists, and depend on comparative
> risk and profitability of alternative employments of the capitals
> concerned.
> 

Yes.  I agree.  Interest is paid for risk assumed and for opportunity cost in the case of existing funds being loaned. 

- samantha