I refer to John Courtneidge's message on interest.
I'm afraid that nothing but disaster -- or, rather, economic desolation --
would follow if interest were banned. (Incidentally, it's unnecessary to
use the emotive term "compound interest". Of course, it's "compound
interest" -- by definition. If someone doesn't pay interest on borrowed
money then he owes the interest as well as the capital, so he has to pay
more interest.) Interest is about compensating someone for the temporary
loss of their own capital, and also for the risk that they take when you
look after their money. There is simply no other way that the world can
work -- unless you want to remain at a very crude level of being like the
Terra del Fuegans whom Darwin discovered. (I mention the Terra del Fuegans
as an example because, stuck where they were at the tip of South America
and separated from the rest of mankind, they were probably one of the few
ethnic groups in the whole world who were not able to trade. Their standard
of living was, consequently, little better than wild animals. )
The reason why Napoleon and others throughout history have tiraded against
interest is that they have always been jealous of the power of merchants
who, of course, need to borrow and lend money constantly in order to trade.
Governments, and more latterly the Church and Islam, have been savagely
against merchants and the charging of interest for 3,000 years -- ever
since money was invented.
The Muslim countries know full well that if their banks didn't charge
interest then their economies would suffer even more than many of them are
now. So, John, don't kid yourself: although their banks don't charge
"interest" for loans, they have "service charges" instead.
The history of the Jewish diaspora in Europe is very interesting in this
respect. Orthodox Jewry forbids usury (the charging of interest) among
themselves, but it's allowed when dealing with non-Jews. The result? In
many different countries of Europe from the Renaissance onwards, small
numbers of Jews managed to borrow from non-Jews (or, conversely, lent to
them) and became prosperous merchants, bankers and manufacturers, sometimes
becoming immensely rich. The remaining Jews who could only borrow from
themselves found that if interest was not allowed it was almost impossible
to borrow and therefore set themselves up in trade.
.
In some countries (such as England) where the number of Jews was very low,
then, in time, the prosperous Jews were able to help their poor brethren
and the standard of living of the whole was lifted up. In other countries
(such as Russia and Germany) where the numbers of Jews were relatively
high, then the rich minority couldn't help and majority remained poor and
wretched and had to resort to living in ghettoes for the limited amount of
self-help and protection they were able to give one another (where, of
course, they were vulnerable to periodic pogroms).
Keith Hudson
At 22:45 10/01/00 -0500, you wrote:
>
>
>----------
>From: "john courtneidge" <[EMAIL PROTECTED]>
>To: [EMAIL PROTECTED]
>Subject: Best News of 99 Arrives - just in time!
>Date: Fri, Dec 31, 1999, 1:58 PM
>
>
>Dear Friends, all,
>
> (Apologies to any that dislike multiple cc's, but this news seems
>mega-important.)
>
>
>First of all, my love to you all.
>
>
>Secondly: my thanks to all, for all their postings of the year.
>
>Finally, the following is a Letter To The Editor about the news:
>
> 'that Pakistan's Supreme Court has ruled "interest un-Islamic" '
>
>and
>
> ' "the country must introduce an interest-free economic system
> by 2001." '
>
>
>Wow!
>
>
>Thanks to all who helped bring this about.
>
>
>Abundant hugs
>
>j
>
>**************
>
>
>
>----------
>From: "john courtneidge" <[EMAIL PROTECTED]>
>To: [EMAIL PROTECTED]
>Subject: <no subject>
>Date: Wed, Dec 29, 1999, 3:45 PM
>
>
>Could you please consider the following as a Letter to The Editor?
>
>Thanks
>
>STARTS
>
>Canada and the whole developed world should study the Reuters' news report
>('The Toronto Star' A35, Friday December 24, 1999). This tells us that
>Pakistan's Supreme Court has ruled "interest un-Islamic" and "the country
>must introduce an interest-free economic system by 2001."
>
>Since charging interest on lent money is a cost on production, and,
>therefore, a barrier to job creation and economic well-being, Pakistan, and
>all those countries which follow this lead, will have a significant economic
>advantage.
>
>The mechanism of compound interest ('riba' in the Muslim world) was, in both
>Jewish and Christian traditions, entirely forbidden before its legalisation
>by Henry VIII in 1545 ( Psalm 15 in the Old Testament, Luke Chapter 6 in the
>New, and Verse 65 in the recently excavated Gospel of Thomas, are worth
>reading in this context.)
>
>The exponential nature of compound interest was recognised by both Napoleon
>and by Einstein as the root cause of war, poverty and distress. More-over,
>this exponential math diverts resources away, not only from the poor, but
>from middle income families too. This is why 450 people in the world own
>more than the 3billion poorest, and that the net effect of interest is to
>impoverish all but the most wealthy 10-15%, even in a country as wealthy as
>Germany.
>
>If we in the Western world don't follow the Pakistani lead, we will find
>ourselves falling prey to these ills in the Twenty-First Century, as the
>economic advantages of interest-free economics show them selves: our present
>life-styles will slip into mass poverty, insecurity, crime and fear.
>
>However, the solution, for us, is straight-forward.
>
>Our Public Libraries show that the community can operate an 'interest-free'
>lending system where books, and so on, are available, free of loan charge
>to responsible borrowers, all overseen by professionally trained, Public
>Service librarians.
>
>One can easily see a Public Service Banking system, lending interest-free,
>overseen by Public Service Bankers. Such a service would retain global
>competitiveness and create economic well-being for all.
>
>Now, wouldn't that be a gift to the next generations!
>
>ENDS
>
>Dr John Courtneidge
>
><[EMAIL PROTECTED]>
>
>107 Golden Avenue, Markham, Ontario, Canada
>
>(905) 471 0320
>
>
>
________________________________________________________________________
Keith Hudson, General Editor, Handlo Music, http://www.handlo.com
6 Upper Camden Place, Bath BA1 5HX, England
Tel: +44 1225 312622; Fax: +44 1225 447727; mailto:[EMAIL PROTECTED]
________________________________________________________________________
