Why Compound Interest is Impossible: Physics vs. Finance

Описание: What happens when a Nobel Prize-winning chemist and medieval Islamic scholars reach the exact same conclusion from completely different starting points? In this video, we explore the shocking connection between the laws of physics and the prohibition of Riba (interest).

💡 IN THIS VIDEO
We uncover the work of Frederick Soddy, a scientist who argued that "Compound Interest is at war with Physics." You will learn why the financial system demands infinite growth while the physical world faces limits, creating a dangerous gap known as "Phantom Wealth." We also dive into how true Islamic Finance (risk-sharing) offers a structural solution to this global economic crisis.

👇 TOPICS COVERED
• The Conflict: Why debt grows exponentially (J-Curve) but nature grows logistically (S-Curve).
• Thermodynamics: Why money is actually a "claim on energy" and how entropy destroys real wealth while debt keeps growing.
• The Solution: How the Islamic concept of Musharakah (risk-sharing) aligns with biophysical economics.
• The Reality Check: Why modern Islamic banking is failing to implement this physics-compliant model.

📚 KEY CONCEPTS EXPLAINED
• Rule of 72: How fast debt doubles regardless of reality.
• EROI (Energy Return on Investment): Why interest rates are collapsing as energy becomes harder to extract.
• Riba vs. Risk-Sharing: The difference between transferring risk and sharing it.


🔗 RESOURCES & FURTHER READING Read the full analysis at FinFormed: https://www.finformed.org/compound-in...
Follow FinFormed on LinkedIn:
  / finformedeas  

❓ DISCUSSION Do you think the financial system can survive without reforming compound interest? Let me know your thoughts in the comments!

#IslamicFinance #Economics #CompoundInterest #Sustainability #FrederickSoddy #BiophysicalEconomics #Riba #FinFormed