I think people assume that banks have to charge interest or pay interest in order to operate. That really does not make sense. Banks do operate without interest and the more I think about it the more it makes sense for them to.
The Kiva loan site previously mentioned got me to thinking about interest free micro loans. This bank in Michigan added fuel to the mental fire. The Michigan bank bases a lot of it’s practices on the goal to conform to Islamic laws around money. I think a new look at money and lending from the many lenses of the major religions could be valuable. Christianity has a bit to say about interest and money as well. The religions of the world offer up a great long-term moral compass and we should use the lessons taught to make our way forward. This seems especially important in the current financial environment where morals seemed to be loose at best.
In order for people to be able to have a new system they must be able to operate financially. The best way to transition to the new is working within the current system. I hope to continue exploring the practicalities of operating in a world with no interest. Once you move beyond the idea that your money should grow just for being money you can start to get creative in regards to what it should grow for.
Steve Valenta said,
January 27, 2009 at 4:45 am
I love this topic man, I can’t get enough of it!! Start here…and the everything just gets in line for a new look at it. Everything must change brother! That article was pretty interesting – I had no idea that was going on in the U.S.