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This is why interest is harshly condemned in Islam. One of the major major sins with servere punishment. Is it an evil which keeps the rich richer and the poor
by monlockandkey 4y ago
This is why interest is harshly condemned in Islam. One of the major major sins with servere punishment. Is it an evil which keeps the rich richer and the poor poorer (and miserable).
Islamic finance is the solution to a balanced and fair economy.
1. It prohibit interest to outlaw debt based exploitation and instead replaces it with loans of generosity (pay back exact amount, no interest ) or fund raising through investment. Whereby the risk of the person receiving investment is shared with the lender. This is in contrast with a conventional loan where if your property or business burns down, you still have to pay off the loan to the bank.
2. Zakat - a wealth tax on every Muslim. The value of 2.5% of cash, stocks, investment each year is given to the most needy of society.
Implement these systems and you will have a just economy that prevents hoarding and exploitation. Literally money is forced to move down societal class and acquiring more wealth is with increased risk. Islamic finance is the solution.
- Lionga 4y agoWhich country is poster child for your Islamic finance? Turkey? Sri Lanka? Or Quatar?
- monlockandkey 4y agoNone. There is no Muslim majority country on Earth at this moment which fully abides by Sharia. There are some Islamic laws here and there mixed with secular rulings. As such Muslim countries of today unfortunately engage with interest. The thing with interest, there is very little in terms of going back. As mentioned in this thread the entire modern global economy is built on usurious financial instruments. This was not really the case a few hundred years ago where the level and extent of debt was not to the extremes of today. Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said, “A time will come upon people in which they will consume usury.” It was said, “All of the people?” The Prophet said, “Whoever does not consume it will be affected by its dust.” Source: Musnad Aḥmad 10191 Grade: Sahih (authentic) according to Ahmad Shaki
- pixl97 4y agoI know I look back a thousand years when I look for reliable ways to operate a modern global financial economy. Their insights are just filled with relevant information on how to run my business, and treat my concubines and slaves.
- monlockandkey 4y agoWith that attitude you would need to condemn democracy as it is a 2500 year old system that we championt to run our modern political agenda. Maybe we would not be in this mess in the first place if we sustained insights of the past.
- pixl97 4y agoWhile conveniently ignoring the messes of the past. When this system was made 2500 years ago it worked, because it was new and adapted to the conditions then. Then guess what, the world changed and those systems stopped working because the assumptions they are built on no longer exist. If you brought a lifeform from 2500 years ago to the world today it would get sick and die. It's defense system would not be adapted to the threats it would experience. Yet this is the first thing people try to do with the complex systems we create and they will suffer the same fate.
- throwaway3838g 4y ago> Whereby the risk of the person receiving investment is shared with the lender. Is this not already the case? > This is in contrast with a conventional loan where if your property or business burns down, you still have to pay off the loan to the bank. Isn’t this what insurance is for? Interest seems like it can be both good and bad. Condemning it completely seems a bit harsh
- bombcar 4y agoInsurance doesn’t cover all possible ways for an asset to lose value, and personal recourse loans exist. Amusingly enough, California mortgages for purchase are non-usurious and compatible with this definition, because the lender can only go after the property in case of default, not the borrower.
- monlockandkey 4y agoThe borrower is left with nothing. They pay thousands on monthly mortgage, if they are late, they are charged a penalty (more interest). If they fail to pay all together, then the property is gone. All the money the borrower dedicated to paying off the mortgage gives them nothing in return. Essentially robbery.
- quesera 4y ago> All the money the borrower dedicated to paying off the mortgage gives them nothing in return. Essentially robbery. This is exaggerated to the point of nonsense. I.e. it's literally not clear whether you are hyperbolising for effect, or have no idea what you're talking about. You pay the bank for the use of the money. After 1 fully-paid year of your 30 year mortgage, you own 1.2% of the property. Or more precisely, your debt obligation is reduced by 1.2%. After 15 years, you own 32%. After 20 years, 50%. After 30 years, 100%. It's not linear, which upsets people, but it makes perfect sense if you do the math. In the mean time, if the property appreciates in value, all of that extra value belongs to you. If you stop paying the mortgage at any time, yes the bank will repossess the house to get the money you still owe them. Not all of your future payments, just the remaining debt. If the sale price is in excess of your remaining debt, they send you a check. Moral of the story: Do not mortgage short-term housing, except in rapidly increasing markets. And even/especially then, beware. Corollary: Rental property is a necessary thing, and landpeople provide an essential service. Reality: Some landthings suck.
- bombcar 4y agohttps://zippycatholic.wordpress.com/2014/11/10/usury-faq-or-money-on-the-pill/ https://zippycatholic.wordpress.com/2014/11/10/usury-faq-or-...