Searching for a US model
The JAK Bank provides us with an important model for interest free saving and lending. It is a fully fledged alternative for interest bearing Full Reserve Banking.
The Swedish JAK Bank is based on a Danish concept from 1931. It started in 1965 and obtained a banking licence in 1997. It’s a cooperative bank owned by its members, of which there are about 38,000. JAK stands for Jord Arbete Kapital, which is Swedish for Land, Labor and Capital, the factors of production.
Its main goal is to provide its members with interest free loans.
It operates under four basic principles:
- Charging interest is inimical to a stable economy
- Interest causes unemployment, inflation, and environmental destruction
- Interest moves money from the poor to the rich
- Interest favours projects which yield high profits in the short term
The Jak bank basically works as we expect a bank to function: it takes in…
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