Your problem is that you're giving shallow counter cases and counter examples. For example, mining on the moon. These things are good for jokes. But repeatedly hammering with shallow cases can be annoying. Since you're awaiting my reply so eagerly I'll try to give you answers.
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because banks are owned by capitalists. zero interest kills their profit. their motive is profit not welfare. and if they are doing any welfare it is with taxes and by giving loans to other nations.
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If zero interest kills their profits then what's the incentive for a financial firm to give you loan? You already said their incentive is profit. See:
You haven't answered what will be incentives to give loans when there is no interest rate and money is depreciating.
Your answer: profits
That's argument for the sake of argument. Shallow reasoning. Reason I was going to avoid this thread.
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1. have you heard of the Phillips curve? it is a negative relation between unemployment and inflation. i.e increase inflation and reduce unemployment. now these are the two ills you want to cure right? so what are you going to choose? in the long run (sorry unemployment comes back to its original level at a higher inflation! the solution is to reduce the long run unemployment level. how? by supply side economics: build schools and institutions, infrastructure etc. how are you going to do that? by investment? where will that investment come from? foreign loans or domestic loans? or are we going to wait for foreign countries to take pity on us?
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That Phillips curve! Unemployment gonna decrease as inflation goes up only for the short run while your whole argument is based on the LONG RUN. Why even bother stating it when it doesn't even help your argument? Trying to be technical?
That whole development thing of supply side economics can be done without making the interest rate zero. Building school and infrastructure is not dependent on making interest rate zero. Making it zero will cause hyper-inflation. The money you think will be liquidated to be invested is going to be inflated and not of much use!!!
Inflation is not good, that's why policy makers try so much hard to keep it low.
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2. Inflation is something you will have to live with. today the policy rate was announced at 10 % (or was it yesterday?). why? because inflation has been constant at 8.6%. now tell me why do we have inflation presently? is it right to have it or not? is it affecting the poor? the hell with the poor. aren't resources scarce? let them die. economics does not care as it is a positive science right? or does it care?
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That's called rambling. Economics is a positive science and policy makers will use it to make humane decisions one of which is changing interest rates to control inflation so that poor won't die because of high inflation. We know because economics tells us that.
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3. were there banks in the beginning? no. was the world working? yes. why do we have banking system now? changing needs you might say. efficiency of paper money you would say. was there inflation before banks were introduced? if yes give an example. if no then does it not mean that banks are a cause of inflation?
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The world was working without factories, huge population, modern communication and transportation system. World was working even when we were in caves. What kind of shallow reasoning I'm dealing with
As regards as the other question, let me quote Adam Smith's The Wealth of Nations
"The discovery of the abundant mines of America reduced, in the 16th century, the value of gold and silver in Europe to about a third of what it had been before"
Prices in Spain rose by 400 percent in 1500s and 1600s which was called Price Revolution. Banks are the only cause of inflation????
I think I have dealt enough with shallow reasoning.