News media are providing full coverage of the euro malady, but they have failed to highlight the main reason for this crisis.
Yes one of the reasons is overspending.
To cover this some European nations resorted to the printing of money or borrowed money from financial institutions on high interest rates.
The root cause is not borrowing but the system of charging interest on unproductive spending. Since it does not generate any positive revenue, the affected countries will not be able to pay back the loan and the amount of loan will increase due to interest. It will become a vicious circle from which they will not be able to escape.
Interest is forbidden in all major religions, because of its evil effect on society. In Islam usury is condemned in the strongest possible terms. Now economists are studying the Islamic economic system to find a solution to the global financial crisis.
0 Comments:
Post a Comment