Inducing and Exploiting the Growth of the Intrinsic Value, 3

Back to Example Island: Farmer A loans farmer B 1 unit of wheat at an interest of 10%; farmer B grows the wheat and that 1 unit produces say 5 units of wheat; farmer B returns farmer A 1.1 units of wheat, and still has 3.9 units of wheat left. Pebble beach owner loans farmer C 10 pebbles at an interest of 10%; farmer C will have to return 11 pebbles: where is he going to find that extra pebble? Earn it by dealing with other people? This merely defers the problem. Let’s look at the whole scene: pebble beach owner loans to 99 people 10 pebbles each, which amounts to 990 pebbles loaned, at an interest of 10%, which amounts to 99 pebbles of interest. How are these 99 people going to scrape together those additional 99 pebbles, since they do not exist in the hands of them all in the first place, and all those that exist are in the beach owned by the pebble beach owner?