Unpayable Interest: The Illusion of a Solvent Economy
Loan Payoff Simulator

Before we begin, let’s ask a few simple questions.

📌 Is the aggregate economy solvent?
📌 Where does money come from?
📌 Can all debts be paid off, or is there something fundamentally wrong with the system?

Most people assume that if you borrow money and work hard, you can pay it back. But have you ever stopped to ask: Where does the money to pay the interest come from?

If every dollar in circulation was originally borrowed into existence, then money begins as debt. When interest is paid, purchasing power can shift from borrowers to bank equity. In a small closed model, the system can still “balance” on paper while the borrower runs out of spendable cash.

🔹 Borrowers can become insolvent even when aggregate balances still add up.
🔹 Interest payments can concentrate circulation into bank equity over time.
🔹 The key stress is often distribution (who holds liquidity), not just accounting totals.

This means the system can feel like musical chairs: claims remain, but the person who must pay may run out of money first.

💡 This simulator tests that pressure directly: can the borrower complete repayment using only the deposits available to them?

Even if Bob is perfectly responsible, he may still go broke before obligations are cleared.

👉 Let’s use a simple loan to see where the money ends up and who is left short.
If the system is healthy for borrowers, Bob should be able to finish repayment without refinancing.

🚀 Let’s begin.

Alright , we're going to be borrowing from

, we have a problem. The terms of this scenario are that you can only pay off your loan with this loan. Don't just sit there, let's double down! I checked for you, and your credit is still good 😁 . are willing to give you another loan. So what do we do? Go back to your life of ignorance and bliss, or double down and pay off this loan?