A further matter is the charging of interest. The Campaign as such can have no view on this subject, but that this is problematical was recognised in biblical times (Leviticus 25) and put under restrictions. These were reiterated over the centuries, down to 1745 when the first Papal Encyclical, Vix pervenit, was issued.
Associated with these issues is another. When banks create credit for land purchase, with land being used as security for the loan, they are in effect becoming landowners for the duration of that loan. What is labelled and thought of as "interest" is in reality rent. Experience shows that this drives cyclic credit-fuelled land price bubbles and places the banks in the role of land speculators. As the cycle proceeds the ratio of land price to rent rises, with yields falling to the point of instability. This is what happened in the mid-1970s, the early-1990s and again a couple of years ago. Regulation of the banks will not curb the forces that drive this process.
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