Re: Pakistan Supreme Court outlaws interest

["John Gelles" <jjgelles@xxxxxxxx>]

            Virtually all interest is charged by lenders who
            calculate it in nominal termes -- not real ones.

            Therefore, interest rates that look positive are
            often zero or negative in real measure.

            If we ever switch to a real money system,
            in which fiat money is indexed to hold
            purchasing power, it may well be in use
            with a real rate of interest of, say, 1 %.

            If real growth can be kept at, say, 3%,
            that would allow 1/3rd of it to go to lenders
            with 2/3rds left for labor and other
            deserving partners.

            In all events, if real money ever becomes
            practical, interest as a concept will also be
            rationalized in terms of future effect. We
            may assume the objectives of a real money
            system will be more democratic and less
            corrupt than what it replaces.


        John Gelles
         email    1944@xxxxxxxx
             url    http://1944.org