The basic answer is yes. Here’s why…
Access to capital is critical in a healthy economy. Both personal and business capital.
Capital is simply a fancy word for funding.
A healthy economy is one where capital is efficiently utilized to create growth and prosperity.
Central banks are not needed in a sound, gold-backed monetary system. This is why the number one priority of the central banksters was to end the gold standard since they began in 1913
On a personal level, buying a house is good for an economy because people buy goods and services to improve or enhance their home and lifestyle which supports local businesses. Borrowing the capital (mortgage funds) to purchase the home is healthy.
On a business level, borrowing capital to effectively expand and grow the business (such as purchasing new, more efficient equipment), leads to retaining or hiring more employees. Successful businesses also help support/grow other local businesses and services.
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Therefore, capital loans, when efficiently and productively used will create healthy, prosperous economies for all.
On the other hand, in fiat currency economies where the interest rate on personal and business loans can be artificially and arbitrarily manipulated up and down, capital becomes severely mis-utilized. Particularly when interest rates are artificially lower than they should be.
Super cheap loans (at super low interest rates) encourage non-efficient borrowing – because cash is cheap.
However, when interest rates are then artificially raised (like what’s happened over the part 18 months), those cheap loans become super expensive to rollover due to dramatically higher loan interest payments.
This causes people to not be able to afford a new mortgage if they need to move locations for a job change, etc.
It also causes businesses to severely struggle if they need capital to improve their efficiency (lower operating costs) or retain employees.
Economic downturns, in a fiat currency system are typically the result of manipulated interest rates which create unhealthy (shrinking and non-prosperous) economies where everyone suffers.
Well, everyone except the elite and the Banksters who profit on illicit financial trades that don’t produce any tangible goods or services.
In a gold-backed currency system, the cost of money is fixed by a specific weight of gold.
Consequently, interest rates cannot be artificially manipulated up or down by a central bank.
In fact, central banks are not needed at all in a sound, gold-backed monetary system.
This is why the number one priority of the central banksters was to end the gold standard since they began in 1913.
It took them almost 90 years, but they achieved their goal.
The only way fiat currencies can be created into an economy is through debt (via loans). Since interest rates of fiat debt can be manipulated, so can fiat currencies.
So, loans themselves are not intrinsically bad or unhealthy.
When utilized properly, in a sound monetary system, loans support healthy growth and prosperity.
However, manipulated debt issued in a fiat financial system typically distorts free market capital allocation (utilization) only to the advantage of the financial elite bankster class.
