Usury in the context of "Ship of Fools (satire)"

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⭐ Core Definition: Usury

Usury (/ˈjʒəri/) is the practice of making loans that are seen as unfairly enriching the lender. The term may be used in a moral sense—condemning taking advantage of others' misfortunes—or in a legal sense, where an interest rate is charged in excess of the maximum rate that is allowed by law. A loan may be considered usurious because of excessive or abusive interest rates or other factors defined by the laws of a state. Someone who practises usury can be called a usurer, but in modern colloquial English may be called a loan shark.

In many historical societies including ancient Christian, Jewish, and Islamic societies, usury meant the charging of interest of any kind, and was considered wrong, or was made illegal. During the Sutra period in India (7th to 2nd centuries BC) there were laws prohibiting the highest castes from practising usury. Similar condemnations are found in religious texts from Buddhism, Judaism (ribbit in Hebrew), Christianity, and Islam (riba in Arabic). At times, many states from ancient Greece to ancient Rome have outlawed loans with any interest. Though the Roman Empire eventually allowed loans with carefully restricted interest rates, the Catholic Church in medieval Europe, as well as the Reformed Churches, regarded the charging of interest at any rate as sinful (as well as charging a fee for the use of money, such as at a bureau de change). Christian religious prohibitions on usury are predicated upon the belief that charging interest on a loan is a sin.

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Usury in the context of Cato the Elder

Marcus Porcius Cato (/ˈkɑːt/, KAH-toe; 234–149 BC), also known as Cato the Censor (Latin: Censorius), the Elder and the Wise, was a Roman soldier, senator, and historian known for his conservatism and opposition to Hellenization. He was the first to write history in Latin with his Origines, a now fragmentary work on the history of Rome. His work De agri cultura, a treatise on agriculture, rituals, and recipes, is the oldest extant prose written in the Latin language. His epithet "Elder" distinguishes him from his great-grandson Senator Cato the Younger, who opposed Julius Caesar.

He came from an ancient plebeian family who were noted for their military service. Like his forefathers, Cato was devoted to agriculture when not serving in the army. Having attracted the attention of Lucius Valerius Flaccus, he was brought to Rome. He was successively military tribune (214 BC), quaestor (204), aedile (199), praetor (198), consul (195) together with Flaccus, and censor (184). As praetor, he expelled usurers from Sardinia. As censor, he tried to save Rome's ancestral customs and combat Hellenistic influences.

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Usury in the context of Islamic banking and finance

Islamic banking, Islamic finance (Arabic: مصرفية إسلامية masrifiyya 'islamia), or Sharia-compliant finance is banking or financing activity that complies with Sharia (Islamic law) and its practical application through the development of Islamic economics. Some of the modes of Islamic finance include mudarabah (profit-sharing and loss-bearing), wadiah (safekeeping), musharaka (joint venture), murabahah (cost-plus), and ijarah (leasing).

Sharia prohibits riba, or usury, generally defined as interest paid on all loans of money (although some Muslims dispute whether there is a consensus that interest is equivalent to riba). Investment in businesses that provide goods or services considered contrary to Islamic principles (e.g. pork or alcohol) is also haram ("sinful and prohibited").

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Usury in the context of Loan shark

A loan shark is a person who offers loans at extremely high or illegal interest rates, has strict terms of collection, and generally operates outside the law, often using the threat of violence or other illegal, aggressive, and extortionate actions when seeking to enforce the satisfaction of the debt. As a consistent or repeated illegal business operation or "racket", loan sharking is generally associated with organized crime and certain criminal organizations.

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Usury in the context of Loans and interest in Judaism

The subject of loans and interest in Judaism has a long and complex history. In the Hebrew Bible, the Book of Ezekiel classifies the charging of interest among the worst sins, denouncing it as an abomination and metaphorically portraying usurers as people who have shed the borrower's blood. (See Ezekiel 18:13 and 18:17.) The Talmud dwells on Ezekiel's condemnation of charging interest.

The Torah and Talmud encourage lending money without interest. But the halakha (Jewish law) that prescribes interest-free loans applies to loans made to other Jews, however not exclusively. Rabbi Isaac Abarbanel, however, declared that the acceptance of interest from non-Jews does not apply to Christians or Muslims, as their faith systems are also Abrahamic and therefore share a common ethical basis.

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Usury in the context of Riba

Riba (Arabic: ربا ,الربا، الربٰوة, ribā or al-ribā, IPA: [ˈrɪbæː]) is an Arabic word used in Islamic law and roughly translated as "usury": unjust, exploitative gains made in trade or business (especially banking). Riba is mentioned and condemned in several different verses in the Qur'an (3:130, 4:161, 30:39, and the commonly referenced 2:275-2:280). It is also mentioned in many hadith (reports of the life of Muhammad).

While Muslims agree that riba is prohibited, not all agree on what precisely it is (its definition). The term is often used to refer to interest charged on loans, and the widespread belief among Muslims that all loan or bank interest is riba forms the basis of the $2 trillion Islamic banking industry. However, not all Islamic scholars have equated riba with all forms of interest; nor do they agree on whether riba is a major sin or simply discouraged (makruh), or on whether it is a violation of Sharia law to be punished by humans rather than by God.

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Usury in the context of Murabaha

Murabaḥah, murabaḥa, or murâbaḥah (Arabic: مرابحة, derived from ribh Arabic: ربح, meaning profit) was originally a term of fiqh (Islamic jurisprudence) for a sales contract where the buyer and seller agree on the markup (profit) or "cost-plus" price for the item(s) being sold. In recent decades it has become a term for a very common form of Islamic (i.e., "shariah-compliant") financing, where the price is marked up in exchange for allowing the buyer to pay over time—for example with monthly payments (a contract with deferred payment being known as bai-muajjal). Murabaha financing is basically the same as a rent-to-own arrangement in the non-Muslim world, with the intermediary (e.g., the lending bank) retaining ownership of the item being sold until the loan is paid in full. There are also Islamic investment funds and sukuk (Islamic bonds) that use murabahah contracts.

The purpose of murabaha is to finance a purchase without involving interest payments, which most Muslims (particularly most scholars) consider riba (usury) and thus haram (forbidden). Murabaha has come to be "the most prevalent" or "default" type of Islamic finance.

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Usury in the context of Enrico Scrovegni

Enrico Scrovegni was a Paduan money-lender who lived around the time of Giotto and Dante. He was the son of Reginaldo degli Scrovegni and Capellina Malacapelli, and was married twice, first to a member of the Carrara family, then to Jacopina (Giacomina) d'Este, daughter of Francesco d'Este, Marquis of Ferrara. He may have been a member of the Cavalieri Gaudenti.

Enrico is most famous as the patron of Giotto, commissioning the great painter to paint the famous Scrovegni Chapel, c.1303-5, which he also commissioned. There is a tradition that he hired Giotto to atone for the sin of usury, although there is debate about whether this idea has any foundation. Dante placed his father in the Seventh Circle of Hell for his notoriously ill-gotten gains, and Enrico himself was a moneylender on a grand scale. Against the idea that he founded the chapel as an act of atonement may be cited the fact that it was a very sumptuous commission for his own personal use, attached to the grand palace that he built for himself. In 1320 Enrico Scrovegni fled the wars and civil strife that plagued Padua at the time, and settled in Venice. He was formally banished from Padua in 1328, and died in Venice in 1336.

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Usury in the context of Antisemitic trope

Antisemitic tropes, also known as antisemitic canards or antisemitic libels, are antisemitic allegations about Jews as an ethnicity or Judaism as a religion.

Since the 2nd century, malicious allegations of Jewish guilt have become a recurring motif in antisemitic tropes, which take the form of libels, stereotypes or conspiracy theories. They typically present Jews as cruel, powerful or controlling, some of which also feature the denial or trivialization of historical atrocities against Jews. These tropes have led to pogroms, genocides, persecutions and systemic racism for Jews throughout history. Antisemitic tropes mainly evolved in monotheistic societies, whose religions were derived from Judaism, many of which were traceable to Christianity's early days. These tropes were mirrored by 7th-century Quranic claims that Jews were "visited with wrath from Allah" due to their supposed practice of usury and disbelief in his revelations. In medieval Europe, antisemitic tropes were expanded in scope to justify mass persecutions and expulsions of Jews. Particularly, Jews were repeatedly massacred over accusations of causing epidemics and "ritually consuming" Christian babies' blood.

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