| Just saw this. Thanks for clarity/responding on your point. Two things. First? Interest also represents the reduction in value of the currency unit, over a period of time. I keep a few thousand hidden around the house. In case of need. Yet, each year... even with 4%, 2%, whatever inflation, that $3000 is worth less. It has less value. Interest exists for three reasons. Risk, as you talk about above, but also as profit for being nice enough to lend capital, and lastly to combat inflation. Why would people park their money, and lose both value in that money due to inflationary pressures, AND, make 0% on that capital when they could literally park it many other places and make even double digits? It seems odd to me, that you completely ignore the for-profit motive in money lending, and the inflation issues in lending. As if they simply do not exist. Even in down markets, historical a wise lender (like a massive bank, which tends to lend to a federal level goverment) makes more by parking that capital elsewhere. In terms of the Canadian Government paying 'high interest rates', I merely stated that it pays 'market interest rates'. |