Bank lending transfers future value to the present to earn interest
Evidence
8 Bankers, and other related types of financiers, create loans from thin air by an audacious transfer of future values to the present, to be invested in capitalist endeavours that will hopefully produce enough value to repay the … future, with interest too! — Yanis Varoufakis, Technofeudalism, 1028
Categorization
- DEFINE: Characterizes credit creation as harvesting future value in the present — the engine behind rent extraction.
- corroborated: 2 independent passages support this claim — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 1028
- XREF: connects to: Stock valuation discounts future dividends because present money earns interest. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 205; Over 18 trillion dollars in loans paid negative real interest rates to lenders — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 927; Banks create money out of thin air when granting loans rather than lending savings (+3 more)
Broader Connections
- Banks create money out of thin air when granting loans rather than lending savings
#complicates(0.85) - Financial bubbles burst when current production cannot repay loans borrowed from the future.
#expands(0.85) — Yanis Varoufakis, Technofeudalism, 825 - Derivatives function by binding future prices to the present and blending forms of capital.
#expands(0.80) — Andrew deWaard, Derivative Media, 170