the direction of all capital is determined by the rate of return its owner pursues

in short, investors are believers because investment requires faith

by virtue of the legal definition theyve received from the state, lending firms referred to as "banks" currently possess the privilege of defining a scientifically untested equilibrium price of capital for an entire economy

in the united states of america, a federally chartered firm called the federal reserve defines the economys scientifically untested equilibrium price of capital

in great britain, a collection of nationally chartered firms define the economys scientifically untested equilibrium price of capital (libor)

either way, the price of capital offered on either side of the pacific is 1) not scientific, and 2) not easily rejected by members of the public who only wish to store and move currency ownership in a modern economy

most all cash is forcefully converted into capital that chases state-sanctioned, scientifically untested rates of return—this is how the path of capital is planned in the direction of a state-chartered "banking" or borrowing & lending system

how does giving firms the privilege to define the economy's scientifically untested equilibrium price of capital cause inflation? see: inflation