oh please, this is total bullshit. A crisis can be executed by speculators, they do not create it. If the fundamentals are wrong, something will give sometime.
I don't want to bash your religious anti-interest stand, but interest is not bad. As suggested, read something about the basics of how the economic system functions. You will see (if you read the right books) that capitalism tries to achieve the standards you think are important (equality, but not absolute), prosperity for all, etc). Why capitalism doesn't work in some countries? I'll tell you why. For capitalism to work properly, you need two things, provided by the government: Stability: no military conflicts, no political uncertainty, economic stability (low and stable interest rates), etc, etc. Trust: property rights, rule of law, no/little corruption, etc, etc. The rest is for you to find out.
i'm afraid that is incorrect. straight-up capilatism has absolutely no interest whatsoever in "prosperity for all", its purpose is to maximize wealth in the aggregate. unfortunately wealth is a relative term and this is satisfied equally well by squeezing the teeming masses downwards as by raising oneself upwards. laissez-faire at its purest is actually the quickest possible path from new industry to monopoly/cartel. "prosperity for all" is a socialist twist to laissez-faire, which should be obvious since it clearly implies a redistribution of wealth. unfettered american capitalism took the natural resources of this incredible continent and produced nothing but a endless wave of depression after depression until it was finally tempered by the starving citizenry literally rioting in the streets.
"oh please, this is total bullshit. A crisis can be executed by speculators, they do not create it. If the fundamentals are wrong, something will give sometime." To me the speculator is a catalyst not the sole factor for financial crisis. This is not a speculator bashing argument as that would be bashing myself up too in the process but I meant it to be just a reminder of some extreme situations that might arise when speculation takes the turn for the worst.
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I think you misunderstood me. I favour government action on specific areas to provide stability, property rights, rule of law, anti-trust regulation, no-curruption, etc, etc. Capitalism can not function properly without these aspects. 'unfettered american capitalism took the natural resources of this incredible continent and produced nothing but a endless wave of depression after depression until it was finally tempered by the starving citizenry literally rioting in the streets. ' Then environment is indeed an exeption; it should be protected. I don't agree that American capitalism is laissez-faire. Not even close. depressions were caused by failing systems, or changing conditions, not capitalism itself.
To tradingWise, you claim that interest is not bad yet in a llater post, you write that stability is good and one of the things it comes from is low interst rates. no interst is better. but interest is a broad term and it is not my intention to go into this. What I would like tyo know from you and other knowledgeable persons is that would the world be better off with one currency and no interst rates?? Better meaning less greedy, corrupt, etc. Note greedy is not the same as being driven. Being driven is very good and recommended. Your thoughts...
I doubt having one currency and having no interest rate would result in less greed or corruption since these are instinctive characteristics of human beings as Adam Smith can attest, which he learnt the hard way after experiencing a perversion of human attitudes, which by the way was not the ideal end result he hoped for when writing "The Wealth of Nations". In short, his assumptions or hopes about human nature isn't what he liked it to be. However, this is becoming too philosophical as we speak.
Terry, The world without interest rates system is not a good idea. How we're going to deal with inflation? How are we going to compensate the inflation rate if there's no interest rates? Sure, for those countries and people with great devotion to Islamic law (in fact there's been a lot of Syariah Banks emerging here in Indonesia), refusing interest rates is not a big problem, and non-muslims can't prohibit such things. Indonesia, dubbed as the most populous muslim country (but not an Islamic state/country), has only begin a rapid development of Syariah banking not too long ago (about a year or two). People will run into other assets which are speculative in nature, such as real estates and stocks. I think you better ponder on why interest rates occur in the first place, and what's the benefits of having it, versus the disadvantages on having it. I don't want to justify my belief on you, but I think God wouldn't mind if money gained from interest rates are to be used for the good of the mankind. (This is just a thought of mine, I'm not implying it to you). Rzar, The riot in Indonesia on 1998 was given the opportunity to occur by the economic crisis. The crisis provided the chance, but not necessarily the cause. If it had been the cause, why would it just happen in Indonesia. Internal conflicts were the cause. Perhaps you ought to look more deeply to Indonesian issues. Cheers!