Liberating Community Finance from Compound Interest

In Denmark in the 1930s, another group of farmers facing repossession by banks set up a system that continues to operate successfully today.  Building upon earlier practices of interest-free systems in Germany, Christian Christiansen championed the founding of a number of rural savings and loan co-operatives that went by the acronym JAK, short for Jord Arbete Kapital ("Land Labour Capital").  The personal savings and community benefits that have accrued to members of this democratic co-operative finance system are testimony to the dramatic impacts that can be realized by moving from charging compound interest to a fee-based approach to lending.

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