Ah wow of course, I think you just made something click for me.
It's strange how we take interest on cash as a law of nature, when the original intention might have been nothing more than compensation for the risk the lender was taking on.
Now the risk (on bank deposits, govt bonds etc at least) has effectively been removed so the interest rate is the baseline expectation.
So compound interest is underpinning the infinite growth forever delusion...
It's strange how we take interest on cash as a law of nature, when the original intention might have been nothing more than compensation for the risk the lender was taking on.
Now the risk (on bank deposits, govt bonds etc at least) has effectively been removed so the interest rate is the baseline expectation.
So compound interest is underpinning the infinite growth forever delusion...