Republic with interestfree economy
-
Hey
I am wondering for some time now how to put up in some country a monetary system without interest. From internet you can find many articles and videos about riba and interestfree banking but there is not much about interestfree monetarysystem or economy. But how can you establish an interestfree banking system if country's monetary system don't back it up and has interest and inflation - its just not gonna work (properly)!
How to put it to work in real life? I mean, to build up (some small) country's monetary system which- has no interest (thereby also no inflation)
- so this system must be absolutely independent (it cant be tied up with some big currency like USD or EUR)
- how to make it stable (to tie it up with gold price or etc)
- it should also be protected from international moneysharks attacks
- there are also many other important points, but you get the picture
Iam not sure about how nowadays "islamic countries" have their monetary system. Maybe some are fine but its hard to believe. Most of them are tied with USD propably? So there are also interest.
If you know some works concidering the subject, I would be glad to read about them.
Peace
Tarmo -
Salam Alaikom,
2500 pageview and no answers confused
Well, there is a system in Canada call Let-System
http//en.wikipedia.org/wiki/Local_Exchange_Trading_SystemsThere is an intrestfree bank in Sweden call JAK, (normal money) and they use a fee insted. But their system is abit unik, founded in Denmark in the 1940. If you want to ask question they have a forum www.schystekonomi.se with a english section.
I read about a man who printed his own money and value them to a bottle of honney. Then he exechange the money for real money insted to take a lone for his buisness, and lateron they could come back and get their honney... This was insted of the goldstandard, he made a honeystandard
In Switzaland there is something call WIR-Ring (WIRtschaftsring-Genossenschaft), a system where they exechange things, work without normal money.
I can recomand a book by Margrit Kennedy from Germany, "Interest & Inflation Free Money"
http//www.margritkennedy.de/index.php?modus=BUE&inc=ENG&lang=EN
Its free to download if you want... -
You can avoid micromanaging the banking system by simply interpreting this to mean a real interest rate of zero, instead of a nominal interest rate of zero.
So you can have the central bank lend to commercial banks with no interest. The commercial banks will lend to the public and 1 or 2 % above this to cover their costs. Then the government can pursue an inflation target of 1 or 2% by fiscal policy, i.e. raising taxes when inflation is too high and lowering taxes when inflation is too low. The net result will be a real interest rate (interest minus inflation) of zero.
-
i think we all just need to chip in and buy the principality Sealand, an old oil rig in the north sea that has enjoyed completely independent economic, social, political, and geographic independence but little else. we can set up a server farm there and sell domains for revenue if we can get a good suffix. a similar ploy has been working out for the island nation of Tuvalu (.tv). we could even let google station their new latest patent pending project there..a floating server farm powered By ocean waves. well...its all coming together in my head...just need to follow through on my ideas.
