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The Price of Capitalism by Karl Denninger
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The Price of Capitalism by Karl Denninger

January 8, 2009 by · Leave a Comment
Filed under: Opinion 

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This is a must read period, I have had the chance to exchange some email with Karl and he is quite a guy and if you follow his writings, he has been able to show take current problems in our financial crisis and show the technical side, while at the same time he explains it in plain English.  

In this article he takes about how Capitalism needs to work and why you have to accept when assets go up and down and not panic and try to use bailouts to prevent the natural process of Capitalism.  I think everyone should print this out and mail it in letter format to your national representatives.

Article:

“As a followup to my previous Ticker (“There Is No Unicorn That Craps Skittles“) I wish to address the myriad people who have written over the years about the “E-Viles” of debt-based monetary systems, which inherently ends up in a call to bar the imposition (or payment) of interest, or at least a ban on private collection of interest.

The problem with this folks is that it won’t work.

Let’s first define what INTEREST is.

It is the price that you pay to use someone else’s capital for a given amount of time and purpose.

That’s all.

The riskier that venture is, the more INTEREST you will be charged.”

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