Monday, July 16, 2012

Advantage 45 – Win-win situation for lenders and borrowers

Excerpt from the book »Gradido – Natural Economy of Life«

»We believe that economics does not necessarily have to be a zero-sum game; it can be a win-win proposition for everyone involved so long as they have the tools in which to succeed.«
– Ron Kind
American politician

We have already written about the advantages for the lender, who can save the value of their money by making a loan. These advantages are so great that there may possibly even be negative interest for loans.

And now we come to the advantages for the borrower. Anyone who has to build a house with borrowed money may, under certain circumstances, have to repay the threefold amount in the course of the years. The longer the duration of the loan, the more the borrower has to pay back.

In the Natural Economy of Life it is completely different. The maximal amount a borrower has to pay back is the amount of the loan. Both parties – lender and borrower – thus enjoy great advantages from the loan and the result is a real win-win situation. 

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