Quote from: Rassah on July 01, 2011, 08:03:25 PM

Hmm. I guess in this case I would ask, why would the producing member of society, one waiting for someone who is sitting on money, want something that deteriorates, too? I would think deteriorating money would also not be wanted by those getting it, just like it wouldn't be wanted those hoarding it? In which case, wouldn't it be inevitable that someone who is selling goods will start to refuse this free-money, and ask for something else instead (any other more durable commodity)?

Ok. You don't believe merchants would accept such a money. A common approach.
With bitcoin and freicoin in circulation, merchants would prefer to be paid in bitcoins, but buyers would prefer to spend freicoins first.
I bet merchants would accept both. Maybe even paypal dollars.
Also entrepreneurs would prefer to borrow freicoins (because of the lower interest rates).

Quote from: Rassah

Also, I would likely not rent (loan) money to someone who will just have it sit and deteriorate, and since they are able to pay back at least the same amount, they are likely increasing the worth (amount) or my money by putting it to work. So, again, what's to stop me from asking them to pay me back more (interest), besides competition from other money hoarders?

Only competition with other money hoarders. But these time all hoarders have the same disadvantage (or lack the same privilege) when negotiating with borrowers and that is that free-money rots like carrots.

Quote from: Rassah

Where is that metaphor?

In the pdf:

Quote from: jtimon on July 01, 2011, 06:44:14 PM

Also Bernard Liater explains how interest promotes short term thinking. In the page 34 of this pdf (chapter "What do we invest in?") there's a simple example.
He states "Short-term thinking is not intrinsic to human nature, but created by todays money system".
I have not read his book "The future of money" but I want to do it (if anyone finds it for free in the web, please give me the link).
I've just read some of his articles and watched some interviews, but he's an interesting man.