DEATH TO COMPOUND INTEREST

Thank you, Murthy sir, for explaining.

It seems that I have been in error, then. I've checked and what little I can understand is that Amortization seems to be followed by most banks.

So it seems that because of their daily balancing method, nationalized banks are the ones to borrow from instead of private banks. 

Murthy sir, I have a question: Why should money increase in value over time (via the mechanism of interest) whereas everything else depreciates? 

I mean, money is only a symbol which is supposed to help ease the barter system. But the concept of money accruing value by itself, has made the situation worse. 

I posted the marked text block below as an answer to a question but I feel that this could be a topic for Debate/Ideate. 

Let's start with a debate. GOOD, BAD, OR UGLY - Post your views.

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You may call me mad but COMPOUND INTEREST IS A FINANCIAL CRIME perpetrated on the common people by bankers/financiers. 

This crime of compound interest is committed by all - from little "mohalla" i.e. street financiers right upto the pan-global banks.

As if that is not enough, these guys calculate this interest periodically! This means that every time there is a calculation, your debt will increase. Most street financiers do NOT allow you to pay off the principal before the loan period because they claim that they will "lose" money.

I've personally seen many common people, such as unskilled labor and semi-skilled labor, fall prey to this SIMULATED/IMAGINARY DEBT.

It is this type of imaginary debt that puts an economy into inflation. 

Just think about it. Why should interest rates vary? Shouldn't there be something like a fair & fixed percentage? That too only Simple Interest should be charged.

Ok, you might say that the demand should decide why should there be regulation? 

In that case, won't it be excellent if there was NO regulation at all? After all, we should let demand decide, isn't it? Can you imagine what the situation would be in one year if you allow all bankers and businesses to charge what they like as and when they like. 

Oh, would you like a concrete example maybe?

What if there was no MRP on any product? All agencies will try to fool as many people as possible saying that if the customer doesn't want to take it, let him not.

After some time, I'm pretty sure riots are going to break out and most of the financial community will have to run for their lives - literally. 

Hey that makes me think that it may be very scary and hard on the country but maybe the end result - DEATH OF THE FINANCIAL INDUSTRY - would be great. 

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