Is it possible to have one economy, one currency in this world and no interest on borrowings?

Answer 1

It may theoretically be possible to have one world currency (but the thought scares me).

But there is no way that the world wide financial institutions would ever agree to no interest. That is how they make their money.

And believe me, money runs the world and these powerful institutions would not give theirs up, ever.

Answer 2

This is actually three questions.

1.) The world already is a single economy. If a country, let's say North Korea, decides to play inside its own borders and not let anyone else play, it is still a member of the "global economy". The still consume scarce resources, such as land, air and water. Or in other words, just because you never leave your house, it doesn't stop the sky from being blue.

2.) Can the world exist with one single currency? Yes, however this would be difficult, considering the fiat nature of money and how it is controlled. If the Europeans can do it, anybody can do it, frankly.

3.) Can an economy exist with no interest on borrowings? Yes, because there is always an economy. But, what kind of an economy there would be... now that is the question isn't it? As a previous poster said, no interest = no incentive save. Very quickly, here is how that works.

You lend 100 dollars to a bank. The bank, in turn, lends out 90 of these dollars and keeps 10 of them in reserve. These 90 dollars filter out through economy and eventually end up back in the bank. So, now there is 190 dollars total in the economy. The bank then lends out 81 of these dollars and keeps 9 on reserve, raising it's reserve to 19. These 81 dollars get lent out and then filter their way back into the bank again and so on and so forth.

With no interest this entire process would never happen and we would be back in the dark ages, literally, when the Christian Church banned the lending of money.

Answer 3

No, this is because the Economy is influenced by politics, for example, if we had only one Economy then we could not Embargo. As for one currency, that would damage the economy because some country will decide that they could improve their lot in life by procucing money to improve wealth, that will drive up inflation, since more money will have to be produced to compensate the rich whom have suddenly found themselves poor, eventually it will be $1000000 to buy a candy bar. As for the third, if there were no interest no one would get up and pay, some people only pay off loans to avoid Interest.

Answer 4

Sure it's possible, but not practical. It will never happen. Economies are all relative to each other, and basically all currency is based on the value of things like gold and such anyways.

Answer 5

Sure if perpetuation and ascendent advancement such as keeping the function well lubricated so as to satisfy the need to have an economy in the first place are not prerequisites to a well functioning society.

Answer 6

I remember reading about some kind of system like that in the book "For Us, The Living" by Robern Heinlein. It seems to be called "social credit" -- anyway, you might check it out:

http://en.wikipedia.org/wiki/For_Us%2C_the_Living

http://en.wikipedia.org/wiki/Social_credit

Answer 7

That's like having caviar without Champagne. You could do it, but why would you want to? It would leave a bad taste in your mouth.

Answer 8

no, and why would someone lend you money with no interest? What would be the point of working for free?

Answer 9

If you had no interest on borrowings, there would be no incentive to save.


Wave bye-bye to future growth.

Answer 10

it would be posible but hard to do and probibly wont happen ever