Money is Amazing

I'd want to write about all the fine things that money can buy: wheels, wine and wild parties, but I'm not as aware of the before mentioned, as I'd like to be.

In a small village, the village moneylender (sahukar) would give out loans against collaterals that you'd have to rip you heart to give and interests rates like 40% and above. And if you ask for a Rs100 loan, all the fees/commissions etc wouldn't entitle you to more than Rs90 from it. Thus an exploitative system where the poor become slaves, the overall produce/prosperity goes down and in the long run, you have a slightly richer sahukar and half-dead slaves or runaway debtors.

Microfinance saved so many. Nobel Laurete Yunus showed loans of Rs.100 would go out and come back, at a high recovery rate with interest something above the Libor-equivalent of Bangladesh, and at before the stipulated time, much to the merriment of the lender since prepayments didn't hurt him much. That money went back into the system and returned, each time buying a household/farm a much needed tool/device... Money flowed faster, created more prosperity for both the lender and the borrower and joy for the village/community.

One of the properties of money is that its meant to flow like water. The more it flows, the more lives are touched. Money is happiest if it flows to where it can be used most efficiently, to provide the greatest benefit. Money parked, because it's being hoarded, is like water in a pond, just waiting for algae to form in it. If you have money, send it into systems that need it the most and can use it most optimally, read: little old me.