And that is then when you have no risk, the guy who borrowed carries the complete risk of failure and still would have to pay you anyway. And that is unfair.
While you should get something for investing in him, the amount he owes you should be fixed there and then. Indeed, if you invest a gold piece into his life against a dime a month, you would be owed a dime a month for as long as the venture exists - but would never get the coin back - AND can't take anything else off him. In order to avoid all those hassles, you might just want to invest into the local property union or finance bank, participate in the profits and your friend gets his investment from them. Given that he already has a house, he might actually sell the house for a gold coin and contract to buy it back for a coin and pay a dime rent for the month. That is actually in simplified terms how it is really being done. This is why you will find in most Islamic countries that title deeds in a property purchase are changed very late. After up to three months the application for a change is submitted - or a temporary change in ownership is entered. A mortgage if you will. Now, the reason for the exercise is actually two-fold. It should be hard for people to obtain funding in which they themselves carry the risk and it should be even harder to disown anyone. The ancient precedessor of the cooling off period of an agreement, so to say. The system is meant to discourage accepting third party funds for whimsical purposes, while still facilitating trade and profiting from commercial activities. It is meant to make the idea of being debt unthinkable. If that would mean that there are less McDonald's outlets and less people buying tanks, SUVs, airplane tickets, etc. then so be it. After all, this would only be for a brief while. Once the initial shock has passed people will realize that due to not paying off this and that they suddenly have more cash left every month. Consider this: The US populace pays $62 billion of interest on credit card debts per year! This is interest only, does not include compounding interest, nor indeed does it include installments. About half of the credit card debts are for consumables (restaurants, holidays, groceries, etc.) So, no lasting value has been created or changed ownership. What is worse, is that through compounding interest and high fees the original price of the combined items three years ago would have been less than half of what is being paid in interest now. Imagine, if people were not able to use credit for consumables. Imagine that cards would have to be balanced by the end of each month. Even better, imagine all cards became debits cards and people would spend money they have. That's an additional $62,000,000,000 in availavle cash to the US economy every year. So, while at one time there would have been less money spent (less card purchases), there would be overall much more liquidity. The problem is, everybody gets easy credit because banks want to profit at any expense. People who could never qualify for a mortgage or a loan to start a business are carrying 5 credit cards... Cheers, Robert. budget & privacy website hosting http://www.cyberica.net e-commerce & e-business services http://www.cyfrocash.net budget domain registrations http://www.u2planet.com --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
