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Tuesday, 25 August 2015

Interest

The Bible and the Qur'an both have passages that denounce and in many cases downright prohibit collecting interest on loans.

The First Council of Nicaea, in 325 AD, forbade clergy from engaging in usury, which was defined as lending on interest above 1 percent per month.

The Pilgrim Fathers borrowed £4,000, to be repaid at the rather hefty rate of 43% .from a London company of investors for their voyage to  New England. They spent the next 23 years repaying their loan.

At the beginning of 1974, interest rates in Britain were precisely equivalent to those which the bankrupt Philip II of Spain had to pay after the loss of the Armada.

In November 2013 the European Central Bank cuts its bank rate to 0.25%, an historic low point.

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