When I was still in Catholic high school between the years of 2011 and 2015, I found the “Liquidity Preference” of the OECD-Type Student Economy to be tantamount to living an inauthentic existence. It became obvious to me at the secondary educational level that Student Loans are dependent on the concept of a Liquidity Preference, long before I graduated and moved on to university. And that is why I had never bothered to borrow a Student Loan. Both the “Quantity of Kapital” and the “Quantity of Schuld” rely on the same “Interest Rate” as part of the “Fractional-Reserve Banking System.”
The potential is there for the concept of Liquidity Preference warrant some ridiculous arguments in favor of Usury. Usury does not have to only affect the Borrower; it can even affect the Lender in the case of “Negative Interest Rates.” As of 2021, most of humanity in dozens of countries on Earth are suffering from COVID-19 and Usury.
It was John Maynard Keynes who had provided the justifications for Usury in Chapter 15 (“The Psychological and Business Incentives to Liquidity”) of his 1936 book, The General Theory of Employment, Interest and Money. Yes, the same Keynes who also came up with this cringeworthy “Beauty Contest” in Chapter 12 (“The State Of Long-Term Expectation”) of General Theory:
“It is not a case of choosing those [faces] which, to the best of one’s judgment, are really the prettiest, nor even those which average opinion genuinely thinks the prettiest. We have reached the third degree where we devote our intelligences to anticipating what average opinion expects the average opinion to be. And there are some, I believe, who practise the fourth, fifth and higher degrees.”
This is definitely unlike the Solidarity Preference of the Work-Standard, which I had introduced in “Third Place: Total Educational Effort (Pt. III of V), where it was more about students than the bankers. There are some youths who have no problems living together in a Soviet-style Kommunalka (Communal Apartment), while other students would rather prefer living separately at a Mansion. Personally, if I had to relive my Catholic high school years again in the SSE of a Socialist nation, my school life and social life will be spent simultaneously at a Medieval hilltop castle, complete with 21st century European amenities and standards of living as well as a Catholic chapel for receiving the Sacraments. Why would I not want to have the best of my young adult years be spent at a Medieval hilltop castle?
Categories: Blog Post
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