A Crucial Lesson Of History: Why Do We Have Usury?

Real Currencies

(Left/Above: John Calvin, Prophet of the Money Changers)

Usury was forbidden in Europe, during the Medieval Era. But there was no mechanism to provide interest-free credit. As a result, there was credit scarcity. This was a very real problem, hindering economic expansion. And this was the rationale for letting the Money Lenders back in.

1500 Europe was a burgeoning Civilization, that was seeing growing urbanization and specialization in the economy.

Because of Usury prohibition, there was no Banking. There was an economy based on the understanding that men share the common fate of having to wrest a living from the Earth, and that brotherly love, and not money grabbing, was the basis of the economy.

It’s hard to even fathom such enlightenment now, and certainly things will not have been all roses. But this was how they thought and operated.

However, the economy was stalling because of a bottleneck: there…

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