So amazing and insightful session with the expert. All Al Hakam Inspire Podcasts I have watched so far have been an amazing experience and this one was too amazing. JazakAllah million billion times for bring up such sessions. Keep it up! May Allah the Al Mighty bless you all!
Thanks, great interview. I have subscribed and will checkout other interviews. Professor Sachs didn’t seem to answer your interesting question about interest. I don’t think it really matters in this case. The US can borrow large, almost unlimited amounts as long as interest rates are less than the rate of economic growth. As long-term interest rates are still less than the US GDP growth rate, the US can still pay interest on its debt. It can even do so by “printing money” as long as international investors still have faith the US will honour its debts. But this borrowing capacity is not limitless. One day investors will no longer trust the US government. It will happen suddenly (just like past financial crises). Interest rates will shoot up and exceed the US GDP growth rate. It’s possible this day is not far off as interest rates are starting to climb up again.
The interest-based system of credit prevailing in global economy today is destructive to the peace of the world in two ways. On the one hand, it helps the accumulation of wealth in a few hands, while on the other, it facilitates war. Moneylenders are always creating circumstances that may cause conflict between one nation and another so that war can break out and the belligerent nations may be compelled to borrow money from them. The concentration of money in the hands of fewer individuals and multinational corporations, through banking interests, creates tensions between the interests of different economic actors and a constant pressure for large scale investments (atomic power plants, arms, etc.). Why is this? Because inequality secreted by an interest-based financial system creates insecurity. In any society where the rich control a huge proportion of the country’s wealth, they end up controlling, even taking hostage, the political system. Many of the wealthy somehow own shares in the military-industrial complex. They then demand that state policy expand the military sector. So the insecurity caused by the increase in inequality feeds the insecurity inherent in the status of a heavily armed military giant attacking other nations on the planet. It functions as a spiral. Military production is the only area where the “saturation” point can be postponed indefinitely as long as the “enemy” is equally able to develop faster and better weapons. Profits in the military sector are far greater than any profits made in the civilian sectors of our economy. Similarly, Margrit Kennedy’s research showed that one penny invested at the birth of Jesus at 4% interest would have bought, in the year 1750, one ball of gold equal to the weight of the earth. In 1990, however, it would have been raised to 8,190 balls of gold. At 5% interest, it would have bought one ball of gold by the year 1466. By 1990, it would buy 2,200 billion balls of gold equal to the weight of the earth. The example shows the enormous difference 1% makes. It also proves that the continual payment of interest is arithmetically, as well as practically, impossible. The reason is quite obvious. The economic necessity and the mathematical impossibility create a contradiction, which, in order to be resolved, has led to innumerable feuds and wars in the past. (Interest and Inflation Free Money, p. 7)
NATO Norway has been on "Russia's Border" since 4th April 1949 right near the Murmansk HQ of the Russian/USSR Northern Fleet. NATO Estonia has been on "Russia's Border" since March 2003 next to St. Petersburg Russia. NATO Finland has been on Russia's border since last summer next to both Murmansk and St. Petersburg . I think Dr,. Sachs ought to reexamine his underlying ideas and what Russia's imaginary 'red lines' are. Obviously for Dr. Sachs RUSSIAN Imperialism is the elephant in the room that should NEVER be mentioned (even though its been around for 350+ years longer than the USA has been a country).
