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Ahsen Mukhtiar

Student & Researcher,

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Can we live without compounding interest rate?

It is an established fact that interest is oppressive in any form to anyone. Individual debtor or government all have to suffer. I am not an expert but to me it seems to be a vicious trap. Compounding rate are always on the rise increasing debt many folds in no time. Some would say that same compounding applies to savings account then why its bad? but time value of money shows that currency depreciates more quickly than other specially in Debt seeking countries.

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  • Aug 13 2013: Limited energy supply will fix all of this.
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      Aug 23 2013: Mr Brian can you elaborate your view please.
      • Aug 26 2013: Well besides governments being overzealous with the printing press, interest expands the money supply. This growth is only legitimate if there is more corresponding goods or services in the economy. Goods and services require energy. More things can be made or done with a plentiful cheap supply of energy.

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