a) Money (100%) loaned at interest (4%) cannot fully be paid back (104%), because the money used for the interest itself is never released into the economy.
b) Upon becoming indebted, one’s goods and services are used as a basis for the loan, making the money a title-deed to those goods and services. A title-deed should not be sold at a percentage-rate, but a fixed cost of production (which is closer to 0%).
c) There are two forms of value: exchange-value and use-value. Exchange-value is that value a commodity has in the market, but the use-value is one’s utility for keeping it. If exchange-value rises above use-value, exchange occurs. Otherwise it is kept. Money, however, is not a commodity, it is a means of exchange. As means of exchange, its *use-value* is its ability to be exchanged, and therefor it should carry no *exchange-value* (interest). If a means of exchange has a price (interest, say 4%) it hampers the amount of exchanges that are possible (96%).
d) Under conditions of fairness (free banking, mutual ownership), the prices of goods and services tend toward the cost of production. Money is not a good or service, but banking (money creation) is. The cost of banking is the cost of paying the staff, paying the bills of the bank, and manufacturing money. Considering most banks have a large number of members, the cost of staff and bills drop considerably as the ratio of members to cost rises. The cost of creating money, since most money is digital these days, is included in these costs. There should be no interest, only small bank membership fees. One should receive student and capital loans for free (no interest). We should all have access to mental or physical capital.