Along with Bill Gates, I believe Mohammend Yunis does incalculable evil to the poor and marginal worldwide with their evil programs inflicted on the defenseless. Giving away mosquito nets wipes out the mosquito net dealers, microfinance traps countless people in loans they cannot repay and covenants that destroy their communities. Is there no end to the assaults on the poor by the rich?
Lending money at interest (usury) is a crime in Islam and Christianity. Defying Church teaching is not remarkable, something like 94% of Catholics reject the Church teaching on artificial birth control, so if 99% reject the teaching on usury (interest), no big deal.
So my head spins when I see a group form and spontaneously offers loans that are Sharia-compliant and Catholic-compliant. I suppose what is good and true and beautiful cannot be forever discounted by Church leaders, at some point good will come forth. It is just too bad no Catholics presented this. Perhaps when your theology is reduced to Sola Obamacare other matters of faith and morals take a back seat.
The astonishing good thing is here. I'll be kicking in a "section" for a usury-free loan. For what? To whom? Who cares! Here is a chance to be ethical in business in USA. Rare!
Now I am pretty sure these lenders will suffer IRS problems since we'll have to declare imputed income from interest on the loans since the IRS forbids usury free loans, or be liable for failure to declare taxable income. (And the recipients will be in trouble for undeclared income in the measure they did not pay imputed usury.) My daughters gained scholarships at college and were obliged to pay taxes on the scholarships, since the IRS views scholarships as taxable income. (Imagine a poor family getting a full ride scholarship at Harvard for $60,000 per year, and owe the IRS $20,000 per year for it. In this way we make sure smart poor kids can never get a break in USA, or if they take it, we break their families.) Under capitalism, even imaginary income is taxed, because capitalism is relentlessly evil in practice.
The economy of the United States has already failed, it is just a matter of time before enough people realize it, and the system collapses. http://www.communitysourcedcapital.com/grow-your-business/ is an example of things done right, and I hope that enough of this makes it so we can grow something good out of the coming ashes.
Francis Cardinal George of Chicago says he expects to die in bed, his successor die in prison, and his successor executed in the public square. Sounds about right, but for what? Will they understand it was for failure to teach the immorality of usury? And how the acceptance of capitalism, with its heart of usury, brought down the country? Probably not. Do you think the people of Sodom and Gomorrah had any idea what they had done wrong?
Cardinal George said he expects a renaissance after that last Cardinal is executed to cheering crowds in Soldier Field. Renaissance of what? Resurgent usury-based economy? Romney/Obamacare? Capitalism?
The free market is essentially ethical. Usury is unethical. Out of nowhere comes an ethical capital provider, in essence a bank like what has not been seen for 250 years. Astonishing.
http://www.communitysourcedcapital.com/grow-your-business/
Encouraging. ἀπὸ μηχανῆς θεός!
Feel free to forward this by email to three of your friends.
Lending money at interest (usury) is a crime in Islam and Christianity. Defying Church teaching is not remarkable, something like 94% of Catholics reject the Church teaching on artificial birth control, so if 99% reject the teaching on usury (interest), no big deal.
So my head spins when I see a group form and spontaneously offers loans that are Sharia-compliant and Catholic-compliant. I suppose what is good and true and beautiful cannot be forever discounted by Church leaders, at some point good will come forth. It is just too bad no Catholics presented this. Perhaps when your theology is reduced to Sola Obamacare other matters of faith and morals take a back seat.
The astonishing good thing is here. I'll be kicking in a "section" for a usury-free loan. For what? To whom? Who cares! Here is a chance to be ethical in business in USA. Rare!
Now I am pretty sure these lenders will suffer IRS problems since we'll have to declare imputed income from interest on the loans since the IRS forbids usury free loans, or be liable for failure to declare taxable income. (And the recipients will be in trouble for undeclared income in the measure they did not pay imputed usury.) My daughters gained scholarships at college and were obliged to pay taxes on the scholarships, since the IRS views scholarships as taxable income. (Imagine a poor family getting a full ride scholarship at Harvard for $60,000 per year, and owe the IRS $20,000 per year for it. In this way we make sure smart poor kids can never get a break in USA, or if they take it, we break their families.) Under capitalism, even imaginary income is taxed, because capitalism is relentlessly evil in practice.
The economy of the United States has already failed, it is just a matter of time before enough people realize it, and the system collapses. http://www.communitysourcedcapital.com/grow-your-business/ is an example of things done right, and I hope that enough of this makes it so we can grow something good out of the coming ashes.
Francis Cardinal George of Chicago says he expects to die in bed, his successor die in prison, and his successor executed in the public square. Sounds about right, but for what? Will they understand it was for failure to teach the immorality of usury? And how the acceptance of capitalism, with its heart of usury, brought down the country? Probably not. Do you think the people of Sodom and Gomorrah had any idea what they had done wrong?
Cardinal George said he expects a renaissance after that last Cardinal is executed to cheering crowds in Soldier Field. Renaissance of what? Resurgent usury-based economy? Romney/Obamacare? Capitalism?
The free market is essentially ethical. Usury is unethical. Out of nowhere comes an ethical capital provider, in essence a bank like what has not been seen for 250 years. Astonishing.
http://www.communitysourcedcapital.com/grow-your-business/
Encouraging. ἀπὸ μηχανῆς θεός!
Feel free to forward this by email to three of your friends.
5 comments:
According to their website, businesses repay their loans using a predetermined percent of their revenue.
Regarding the IRS and usury problem, what about giving equity ownership or stock in the company when the loan is made? Stocks can pay dividends (revenue) to shareholders. Have the stock expire or be bought back when the loan is repaid? (maybe this is a new type of security?).
Why put a bandaid on a gunshot wound? Why not just stop the shooter?
"Giving equity" is selling stock. That is something else. Paid dividends are taxable income too, so how does this improve things? Further, the convoluted path you lay out is essentially charging interest on a loan, precisely the opposite of this bank's mission.
In both cases, the loan giver receives payment from the business. This was just a suggestion since the IRS forbids usury free loans as the blogpost stated.
I do not understand how a stock or equity share dividend is the same as interest?
Also, isn't it proper to invest in the business and be at risk with everyone else, and isn't this what stock ownership does? See your own previous blogpost:
"If it is your desire to make money with your money, then the proper means is to invest in a business, at risk with everyone else. "
http://hbhblog.blogspot.com/2014/02/all-you-need-is-credit.html
No, not in both cases. A loan is a charitable event in ethics. Under ethical loans, no payment for the loan is made. IN this instance no payment for the loan is made. The problem is the IRS IMPUTES a payment was made, and taxes accordingly, so your solution in no way addressed the circumstances.
It was never suggested dividend and interest are the same. Only both are considered taxable income.
Yes, if you want "profits" out, you invest. If you wish to exercise charity, make a usury free loan.
Why would you bring up stock ownership in a discussion of usury free loans?
John, this is one of the points with which I disagree with you. Interest rates, or usury are a measure of risk, and they WOULD exist in a free market society too.
If we were to follow the Scripture and its teachings, we would still be in the Dark Ages. Think of all the restrictions that the Bible imposes on us: "Don't X, don't Y. Don't desire your neighbor's car, etc, love of money is the root evil." All this nonsense has been passed on generation to generation.
Love of money and greed are good. They motivate you to be more productive and do more for your fellow man. The only thing I would follow from the Bible is the Golden Rule. That's all is needed. I would put away the financial knowledge (usury is evil) of savage shepherds.
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