Thursday, October 1, 2009

Gold-based Banking In The Islamic World And In The Free Market!

Especially interesting was the freedom that Congressman Paul described when he discussed the Islamic banking system. Gold was established during the interview as the common foundation between classical liberalism and Islamic banking. Just like the errors of the Christian Church, Islam has misinterpreted interest (or usury) due to an early (non-scientific) misunderstanding of time preference which really wasn't scientifically discovered formally until much more modern times. In fact most economic systems and their proponents (ie., fallacious economic systems and their quacks) even today are still confused about time preference.

Back to the point, Ron Paul actually encourages those in the Islamic world to develop their system of banking so to fit their cultural requirements and recognizes that any system based on gold, as is the Islamic system, has great merit!

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