RE: virus: Bank Operates Without Interest

From: Jonathan Davis (jonathan.davis@lineone.net)
Date: Fri Mar 26 2004 - 08:13:20 MST

  • Next message: Blunderov: "RE: virus: A fuzzy story"

    Hi Blunderov,

    Here in the UK we have similar racket. Only after massive press pressure did
    the banks stop charging other bank's customers for using their cash
    machines. The cheque scam is still in operation (4 working days) .

    Recently we found out that one of the big high street banks (RBS) made over
    6 billion pounds profit last year. Meanwhile the chief of another (Barclays)
    confessed he would never use a Barclays Credit card as it was a rip off.

    You are comparatively lucky.

    On a separate matter. Do you know where I can get some pictures of
    Johannesburg? I am trying to either find a website or image gallery with
    contemporary pictures of Johannesburg (street scenes, panoramas) or maybe an
    online book shop which sells photographic books from South Africa (e.g. Day
    in the Life of South Africa or South Africa In Pictures).

    Incidentally, we here in the UK are about to be blessed with our very own
    South African TV channel - New South Africa TV. Here is the website:
    http://www.nsat.tv/ .

    Is this enough to lure you over to live with we exiles in the UK? :-)

    Regards

    Jonathan

    -----Original Message-----
    From: owner-virus@lucifer.com [mailto:owner-virus@lucifer.com] On Behalf Of
    Blunderov
    Sent: 26 March 2004 11:21
    To: virus@lucifer.com
    Subject: RE: virus: Bank Operates Without Interest

    [Blunderov]
    Here in SA we appear to be in the grip of a banking cartel. You cannot
    withdraw money or perform any transaction at all without being charged for
    it. Adding injury to insult, the charge is often a percentage of the sum.
    And in, mark you, the age of instant communication, they will hold on to
    your cheques for seven working days before they reflect the money as
    belonging in your account. The statement of interest received at the end of
    the month is a hollow joke compared to the accumulated 'fees'.
    Best Regards

    <q>
    Bank Operates Without Interest

    26.02.2004
    By SIMON COLLINS

    Imagine paying off a $200,000 mortgage and ending up with not only a
    mortgage-free house, but also $200,000 in cash.

    In our interest-driven banking system, it would be inconceivable.

    But for 26,000 members of Sweden's unique JAK Bank, the dream of getting rid
    of interest has become a reality.

    Bank co-founder Eva Stenius is in Otara this week to speak at the Auckland
    Eco Show, a five-day "tent city" of talks, demonstrations and displays on
    sustainable living, housing, energy and agriculture.

    Mrs Stenius said borrowers in the member-owned JAK Bank earn the right to
    interest-free loans after saving with the bank - also without earning
    interest - for several years.

    Then, if they take out a $200,000 mortgage, they have to keep up repayments
    until they pay back the $200,000 loan plus up to a further $200,000 - a form
    of forced saving which means that each borrower in turn finances the next
    borrower.

    The big difference from interest-based banking is that, instead of that
    extra $200,000 disappearing in interest payments to the bank, the borrowers
    ultimately get back the money they were forced to save.

    "It's among friends. We are circulating the money amongst ourselves
    independent of others who want to exploit us," Mrs Stenius said. "It is
    based on humanitarian values rather than profit."

    The system depends on people being willing to save before and after taking
    out a loan without receiving interest.

    Mrs Stenius says JAK members are willing to do that, to qualify for an
    interest-free mortgage themselves, and to help their families and
    communities.

    "You have complete control over where your money goes," she said.

    "Maybe you would like to give your savings points to your children for their
    education, or to help fund starting a business, or you might donate it for
    JAK to invest in community development or women's enterprises or sustainable
    development.

    "A typical JAK member is one with ethical values. Quite a lot are my age
    [60s] and many are well educated. And there is a big group with less money
    who are into alternative living in the countryside.

    "There are also a lot of immigrants from the Muslim community because of the
    Muslim law of no interest."

    Mrs Stenius and her then-husband, Per, helped establish the Swedish JAK Bank
    in 1970, inspired by a similar Danish bank which later merged with a larger
    commercial bank.

    The name comes from the Swedish words Jord, Arbete, Kapital - land, labour
    and capital, "the three cornerstones to economic development".

    The Swedish bank learned from the mistakes of its Danish predecessor, which
    ran out of cash because too many members wanted big loans as soon as
    possible.

    In the Swedish system, a person's loan entitlement is calculated on a strict
    formula based on "savings points".

    "We are the safest bank in Sweden," Mrs Stenius said. "You can't just have a
    big loan - you also have to contribute."

    Administration costs are covered by a $40 annual membership fee and a
    one-off loan fee based on a formula which works out at the equivalent of
    about a 2 per cent annual interest rate.

    The bank has 30 paid staff in two offices, and members do their banking over
    the telephone.

    But it also has 460 trained volunteers who organise lectures and exhibitions
    on sustainable development around the country.

    For more information about the JAK: www.jak.se </q>

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