Re: Question regarding Mortgage???????
Peace again ... just another question and some thoughts ...
Firstly, if free market economy is so desirable then the World Bank should allow rival banking systems to exist. Countries can then choose which organisation to get loans from ...
Secondly, when paying back a loan on a moving target what do we pay back every month? Do we average the rate of inflation over the whole pay back period? Or over each year? Or over every month? And inevitably we will always be playing catch up to a moving target. It's not ideal is it?
I agree, free market means there should be competitors. It would be nice if the gulf and oil rich Arab countries could come up with an arrangement of this sort. This would be a big help to introduce Islamic finance into the global scheme of things.
I agree, but this too depends on the stability of currency. There will always be some variance whenever time is involved in a transaction. An interval of time should be chosen in which we can have relative stability of the currency and then renewed each interval on the remaining balance. This is just a thought not something concrete. It has its problems but what other alternatives do we practically have. Gold cannot be a currency or its standard now.