Perpetual Money Growth To Pay Interest
Detailed Figures for Model #1
For those who like details.
Money Transactions
Grower/Seller Seed Dealer Lender/Bank Deposit Liabilities
Beginning Amounts $0 $2,250 $1,250 $3,500
Grower Borrows To Buy Seed $1,000 ($1,000) $0
Grower Buys Seed From Dealer ($1,000) $1,000 $0
Grower Sells Seed To Dealer $1,500 ($1,500) $0
Grower Repays Bank Loan ($1,175) $1,175 $0
             
Money Balances
Grower's
Money
Dealer's
Money
Bank's
Money
Total
Money
Deposit Liabilities
Beginning Amounts $0 $2,250 $1,250 $3,500 $3,500
Grower Borrows To Buy Seed $1,000 $2,250 $250 $3,500 $3,500
Grower Buys Seed From Dealer $0 $3,250 $250 $3,500 $3,500
Grower Sells Seed To Dealer $1,500 $1,750 $250 $3,500 $3,500
Grower Repays Bank Loan $325 $1,750 $1,425 $3,500 $3,500
             
Corn Seed Balances & Transactions
Corn Seed Balances Grower's Corn Seed Transactions
Grower's
Corn Seed
Dealer's
Corn Seed
Net Quantity
Grown
(Bushels)
Quantity
Bought
(Bushels)
Quantity
Sold
(Bushels)
Price
($/Bushel)
Beginning Amounts 0 BU 1200 BU
Grower Borrows To Buy Seed 0 BU 1200 BU
Grower Buys Seed From Dealer 500 BU 700 BU 500 BU 0 BU $2.00
Grower Sells Seed To Dealer 900 BU 1500 BU 1200 BU 0 BU 800 BU $1.88
Grower Repays Bank Loan 900 BU 1500 BU

 

The top section of this table shows the money transactions between the grower, the seed dealer, and the lender/bank.

The middle section of the table show the money balances at the conclusion of each of these transactions.

The bottom section shows the balances and transactions in terms of corn seed.

What conclusion can we reach from this model?...
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