The Glade 4.0

Assumptions for this question:
There is no inflation - real value of currency is standard with respect to time
The loan is covered by insurance that you do not pay so that if the entity does not repay the loan the insurance covers it. (0 risk)


Would you lend for ten years 500 dollars to an entity that would at the end of those ten years pay you back 500 dollars?

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

Depends on what they'll do with it. I will obviously get no monetary benefit, if there's an emotional benefit I might loan the cash.

Otherwise it's the same as burying a wad of bills in the backyard.

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In time, this too shall pass.

This.

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I prefer to think of them as "Fighting evil in another dimension"

Would said assets be protected from other things such as lawsuits? Would my net value place me in a lower tax bracket?

Is this the whole "OMG I got a big tax return" thing?

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Nope. Opportunity cost means they need to pay me a premium.

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“The duty of a patriot is to protect his country from its government.” - Thomas Paine

Ten years is a long time. The opportunity cost would be too high unless there was another sort of benefit. I guess I'm a Taskiss, DFK! hybrid.

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"Dress cops up as soldiers, give them military equipment, train them in military tactics, tell them they’re fighting a ‘war,’ and the consequences are predictable." —Radley Balko

I'm with Vindi.

And this is some kind of lead-in to something in which we're going to compare real inflation vs. some investment vehicle by negating the first portion of the stipulations, is my guess.

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"Aaaah! Emotions are weird!" - Amdee
"... Mirrorshades prevent the forces of normalcy from realizing that one is crazed and possibly dangerous. They are the symbol of the sun-staring visionary, the biker, the rocker, the policeman, and similar outlaws." - Bruce Sterling, preface to Mirrorshades

No, I would not lend him the money in these circumstances.

Even if the money I was loaning at 0 interest was being used as capital in some sort of venture I was invested in, maybe through owning equity or corporate bonds, I still would not loan the money because undisciplined credit can poison the acuity of the business. This, of course, assumes that interest rates aren't 0, otherwise the credit wouldn't be too cheap and therefore undisciplined. However, stating that inflation is zero makes it nearly impossible for such a scenario.

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"It's real, grew up in trife life, the times of white lines
The hype vice, murderous nighttimes and knife fights invite crimes" - Nasir Jones

Based on the information given? No.

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Ezekiel 23:19-20 

Do I know this entity?

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Buckle your pants or they might fall down.

Depends. Is this entity someone or something I care about personally? How much is 500 dollars in terms of my own financial position?

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."

If I know and care about the entity(family, for example) I am loaning the money to, I would. If it was just some faceless entity, hell no.

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Los Angeles Kings 2014 Stanley Cup Champions

"I love this **** team right here."
-Jonathan Quick

/agree

If it were someone I cared deeply for, and it was going to take ten years for them to pay me back, I would just give them the money and not worry about ever getting it back.

Random person or not someone I truly cared for, without more information, not a chance.

So, a smattering of us have answered. Why are you asking this question and why now?

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

Ok second question:

Assumptions for this question:
There is no inflation - real value of currency is standard with respect to time
The loan is covered by insurance that you do not pay so that if the entity does not repay the loan the insurance covers it. (0 risk)


Would you lend for one hour 500 dollars to an entity that would at the end of that one hour pay you back 500 dollars?

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

No. Opportunity cost means they need to pay me a premium.

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“The duty of a patriot is to protect his country from its government.” - Thomas Paine

Next question: Would you hand someone $500 if they agreed to hand it right back, correct?

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In time, this too shall pass.

Without further information, no.

I end up paying every year, so I'm not loaning the government money interest free, if that is where you are going.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

Actually this is about the Austrian theory of interest and the only response that really matters is Xeq's answers.

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

Xeq hasn't answered.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

I know

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

To the first question, with the exception of family or friends from whom I would accept the guise of "a loan" while personally considering it "a gift", no.

To the second question, maybe. It depends on the circumstances. I can envision scenarios where, although I would receive no monetary benefit from the loan, I could benefit from enhanced goodwill or perhaps an owing of a favor.

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Oh, it is bait. I understand now.

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The U. S. Constitution doesn't guarantee happiness, only the pursuit of it. You have to catch up with it yourself. B. Franklin

"A mind needs books like a sword needs a whetstone." -- Tyrion Lannister, A Game of Thrones

Not bait exactly - I've asked him in the one thread to read a book and he hasn't said he would all the while making seriously wrong assumptions about some fundamental points of economic decision making.

This was a way to get him to realize the factors he uses to make those decisions in an effort to get him to understand how everyone does.

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"...but there exists also in the human heart a depraved taste for equality, which impels the weak to attempt to lower the powerful to their own level and reduces men to prefer equality in slavery to inequality with freedom." - De Tocqueville

Probably not. If someone asks me for $500 for one hour, I'm going to be mighty suspicious of what they might do with it, insurance or not.

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"Hysterical children shrieking about right-wing anything need to go sit in the corner and be quiet while the adults are talking."