Essential-Islamic fin 04-interest in controlled environment

8/7/2019 Essential-Islamic fin 04-interest in controlled environment

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RibaRiba - - InterestInterest

Lecture 2


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Issue to be discussedIssue to be discussedy In terest HARAM clear ayat of Qura n

y In terest i n a co n trolled e nv iro nm e n ty The co n seque n ce of i n terest o n the societyy Co n clusio n is i n terest desirable ?y Rece n t de v elop m e n ts & the rise of Riba-

based i n tuitio n sy The future of Riba . . .


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Wh at t h e Quran DECLARES (2:275):Wh at t h e Quran DECLARES (2:275):Th ose w h o eat Rib (usury) will not stand (on t h e Day of

Resurrection)

except like t h e standing of a person beaten by S h aitn (Satan)leading h im to insanity.

Th at is because t h ey say:"Trading is only like Rib (usury),"

w h ereas All h h as permitted trading and forbidden Rib.

So w h osoever receives an admonition from h is Lord& stops eating Rib (usury)s h all not be punis h ed for t h e past;h is case is for All h (to judge ); but w h oever returns (to Rib),suc h are t h e dwellers of t h e Fire t h ey will abide t h erein

forever.


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Soora hSoora h AlAl--Baqara hBaqara h Aya h # 276:Aya h # 276:

All h will destroy Rib (usury)

and will give increase for Sadaqt ( deedsof charity, al m s, etc.)

And All h likes not t h e

disbelievers, sinners.RIBA will be DESTROYED !!!!!!


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1. Truly t h ose w h o believe,2. and do deeds of rig h teousness,3. and perform As-Salt,

4. and give Zakt,

they will ha v e their reward with their Lord.

y On t h em s h all be no fear,y nor s h all t h ey grieve.


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O you w h o believe!

Be afraid of All h and give up w h at remains

(due to you) from Rib(from now onward),

if you are (really) believers.

MUSTgive

up riba!


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And if you do not do it,

t h en take a notice of war fromAll h and His Messenger;

but if you repent,you s h all h ave your capital sums.Deal not unjustly (by asking more

t h an your capital sums),and you s h all not be dealt wit h

unjustly (by receiving less t h anyour capital sums).


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And if t h e debtor is in straitenedcircumstances,

t h en (let t h ere be) postponementto (t h e time of) ease;

and t h at ye remit t h e debt asalmsgiving would be better foryou if ye did but know.


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And be afraid of t h e Day w h enyou s h all be broug h t back toAll h .

Th en every person s h all bepaid w h at h e earned, and t h eys h all not be dealt wit h unjustly.


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Ah adeet hAh adeet h on RIBA:on RIBA:Anas ibn Malik (r) narrates that the Prophet (s), said:"Deceiving a mustarsal[an unknowing entrant into the market] is riba."(Suyuti, al-Jami' al-Saghir, under the word ghabn; Kanz al-'Ummal, Kitab al Buyu, al-Bab al

thani, on the authority of Sunan al-Bayh

Abu Hurairah ( r) n arrates that the prophet ( s) said:On the n ight of Asce n sio n I ca m e upo n people w h ose

stomac h s were like h ouses wit h snakes visiblefrom t h e outside. I asked Gibril who they were. Hereplied that they were people w h o h ad receivedriba. ( Mus n ad Ah m ed & I b n Majah:Kitab al-Tijarat, Bab al-taghlizi fi al-riba)

Abu Hurairah ( r) n arrates that the prophet ( s) said:There will certai n ly co m e a ti m e for hu m a n ity whe n

everyone will take riba and if h e does not do so , its

dust will reac h h im ( Abu Dawoud)


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Ah adeet hAh adeet h on RIBA:on RIBA:Jabir ( r) n arrates that the prophet ( s) cursed t h e

receiver and t h e payer of riba, t h e one w h o recordsit and t h e 2 witnesses to t h e transaction and said:T h ey are all alike ( Tir m idhi)

Similar to the hadeeth of Alcohol:Anas ibn Malik (r) narrates that Allah's Messenger (s):Cursed ten people in connection with wine:the wine-presser, the one who has it pressed, the one who drinks it,the one who conveys it, the one to whom it is conveyed,the one who serves it, the one who sells it,the one who benefits from the price paid for it,the one who buys it, and the one for whom it is bought.

(Tirmidhi (Hadith # 2776 ) & Ibn Ma


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Ah adeet hAh adeet h on RIBA (on RIBA (contdcontd): ):Abu Sa'id al-K h udri(r) narrates t h at t h e Prop h et (s),said:

"Gold for gold, silver for silver, w h eat for w h eat, barley forbarley, dates for dates, and salt for salt - like for like, andh and-to- h and.

Wh oever pays more or takes more h as indulged in riba . Th etaker and t h e giver are alike [in guilt]."

(Musnad Ahmed & Muslim: Kitab al-Musaqat, Bab al-sarfiwa bay'i al-dhahabi bi al-

'Abdallah ibn Abi Awfa (r) narrates that the Prophet (s), peace be on hi"A najish[one who serves as an agent to bid up the price in an auction] is a

cursed taker of riba."(Cited by Ibn Hajar al-Asqalani in his commentary on al-BukhariSuyuti, al-Jami al-the word al-najishand Kanz al-'Ummal, op. cit., both on the authority of Tabaran


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Ah adeet hAh adeet h on RIBA (on RIBA (contdcontd): ):Jabir ibn 'Abdallah (r) narrates that on the Prophet (s) in the Farewell Pilgirmage, sa

"All of the riba of Jahiliyyah is annulled.The first riba that I annul is our riba, that accruing to 'Abbas ibn 'Abd al-Muttalib [th

uncle]; it is being cancelled completely."(Musnad Ahmed & Muslim: Kitab al Hajj, Bab Hajjati a

'Abdallah ibn Hanzalah (r) narrates that the prophet (s), said:

"A dirham of riba which a man receives knowingly isthan committing adultery thirty-six times."

(Mishkat al-Masabih, Kittab al-Buyu', Bab al-riba, on the authority of Ahmad and Da

Bayhaqi has also reported the above hadith in Shu'ab al-iman with the addition tha"Hellbefits him whose flesh has been nourished byunlawful"

(Musnad Ahmed & Muslim: Kitab al Hajj, Bab Hajjati


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Categorizations of RIBACategorizations of RIBAy Riba An-Nasia h

y Riba Al-Fadl


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Is RIBAIs RIBA HaramHaram in Islamin Islamy I t is a serious kabair; if n ot left i n hell-

fire fore v er

y I t is clearly hara m in Qura n & hadith

y Th ere is absolutely no differenceamongst t h e Fuqa h a h on Riba

y I t is a si n in Judais m & Christia n ity

y I t is n ot co n sidered a good practice i n Hin duis m , Buddhis m , or Maois m


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V iews on RIBA/INTERESTV iews on RIBA/INTERESTy Plato disliked it A n ti-hu m a n

y Aristotle co n de mn ed it

y

Early Roman Empire pro h ibited it !y Lex Ge n ucia of Ro m e I llegal (340 BC)

y Federal Shariat Court A n ti I sla m ic


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FederalFederal S h ariatS h ariat CourtCourt- -Contrary to IslamContrary to Islamy Go v er nm e n t Sa v in gs Ba n ks Act 187 3y The In terest Act 18 39y The Code of Ci v il Procedure, 1 90 8y The Co-operati v e Societies Rules, 1 9 27y

The Negotiable In stru m e n ts Act, 1881y The La n d Acquisitio n Act, 18 94y The State Ba n k of Pakista n Act, 1 956y The In sura n ce Act, 1 93 8y The West Pakista n Mon ey Le n ders Rules,

1 960y The Co-Operati v e Societies Act, 1 9 2 5

( Ba n kin g & Fi n a n ce ( For BCo m , Part 1), Prof M A m in Khalid, Karachi 2 00 2)


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FederalFederal S h ariatS h ariat CourtCourt- -Contrary to IslamContrary to Islamy The West Pakista n Mon ey Le n ders Ordi n a n ce,

1 960y The NWF P Mon ey Le n ders Ordi n a n ce, 1 960y The Pu n jab Mo n ey Le n ders Ordi n a n ce, 1 960y The Si n dh Mo n ey Le n ders Ordi n a n ce, 1 960y The Ba n kin g Co m pa n ies Ordi n a n ce, 1 96 2y The Baluhista n Mon ey Le n ders Ordi n a n ce, 1 960y The Ba n kin g Co m pa n ies ( Reco v ery of Loa n s)

Ordin

an

ce, 1 9 7 9y The Agriculture De v elop m e n t Ba n k Rules, 1 96 1y The Ba n kin g Co m pa n ies Rules, 1 96 2y The Ba n ks ( Natio n alizatio n ) Pay m e n t of

Co m pe n satio n Rules, 1 9 7 4


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Consequence of RIBA in t h e HereafterConsequence of RIBA in t h e Hereaftery Barzakh: drow n in g i n a pool of blood;

bei n g fed throw n rock u n til Qi m iyah;

y Sto m aches filled with s n akes;

y In hell-fire fore v er;

y The Wrath of Allah & His Prophet fore v er

y Ca nn ot sta n d, beate n by worst e n e m y Shaita n ; i n a state of m add n ess


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Definition of RIBADefinition of RIBAy I s a Arabic word with m ea n s extra .

y An y a m ou n t o v er a n d abo v e the pri n ciplea m ou n t is R I BA.

y Late/pe n alty fees is also R I BA.

What is the fundamental problem with RI


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RIBA in a controlled environmentRIBA in a controlled environmenty In depe n de n t i n 1 94 8

y Very si m ple life; n o co m plicatio n s

y Followi n g a barter syste m

y In the case study, all other eco n o m icv ariable ha v e bee n re m o v ed


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5 simple people5 simple people use barter systemuse barter systemy Sajid Fishy Abid Woody Nasir Fruitsy Furqa n Salty Sal m a n En tertai n er

y Not always happy, but cooperatetogether i n barter syste m .

y E ach feels he is cheated, would like tocha n ge the syste m ?


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Loaned money : solution to problem!Loaned money : solution to problem!y

On

e blessed day, Un

cle Yahoodi, arriv

es withthe a n swer to their proble m .

y Loa n ed m o n ey, as aid, m in im u m in terest;

for the de v elop m e n t of the society

y Un cle Yahoodi ready of help out thesepeople;


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Loan takenLoan taken is t h is fair (is t h is fair ( h alalh alal) ?) ?

Name Principle Interesty Sajid 1000 + 100y Abid 1000 + 100y

Nasir1000 + 100

y Furqa n 1000 + 100y Sal m a n 1000 + 100=========================

Total a m ou n t gi v e n 5 , 000Th us total money supply 5000 ONLY

Is there any problem in the above transactio


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RIBA ExposedRIBA Exposed impossible to returnimpossible to return does not exist!does not exist!

y Loan taken = 5,000

y Th us, total money supply 5,000

y How will they return 5,500!

y

The Riba amount500 EXTRA does NOT exiy RIBAimpossibleto return ->ZULM=HARAM


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Returning RIBAReturning RIBAy Tryi n g to do the i m possible

y Ev ery Hara m has its price !

y In order to achie v e the i m possible,the whole society will be affectedn egati v ely!


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Negative consequence of RIBANegative consequence of RIBAy In flatio n ( in the lo n g ter m hyper-i n flatio n /sprilli n g)y S h ort money supplyy Currency devaluedy Un e m ploy m e n t ( stagflatio n ), stressful worki n g co n ditio n sy Ch eating and fraudy Deteriorating quality of good & servicesy Orga n ized cri m e, supported by i n flue n tial peopley Foreigners dictating policyy Politically dividedy Foreigners acquiring national assetsy Foreigner instructing to disable national securityy Lawlessness, h elplessnessy Rampant corruptiony Effectively a failed statey W AR!

Interest + inflation =sprilling inflation =>

Hyper inflation=ACHEIVED


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Our progress after 60 years of Our progress after 60 years of Riba Riba! !


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5 simple people sit to t h ink5 simple people sit to t h inky

Uncle Yah

oodi came toh

elp us ?AID s h ould be forgiven !

y To h elp us, Uncle Ya h oodi gave us 5000.

So we s h ould return 5000!

y Uncle Ya h oodi gave us wort h less paper,in exc h ange h e took over our country!

y Wh y did we accept h is money on h is terms?

y Wh y didnt we buy gold ?

ExtremelyProfitableBusiness

Transaction


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Th ey began to print NOTES!Th ey began to print NOTES!

y I f they had gold worth 1 00 , they couldeasily pri n t a n d distribute 2 000 worth!

y They ga v e loa n s

y They bought real assets: property,buildi n g, far m s, horses, gold m in es!

y They bega n to keep m in i ar m ies!

y In the tow n they beca m e Lords!


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At t h e national levelAt t h e national levely

They gav

e their allegian

ce to the kin

g of thearea.

y Pro m ised to fi n a n ce the war

y In retur n o n ly they would be allowed tolegally pri n t m o n ey i n the cou n try.

y Whe n e v er the ki n g n eeded m o n ey, theywould freely gi v e, i n retur n for assets of thekin gdo m . New ki n gs beca m e sla v es i n theirha n ds!


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Proof of Jewis h instigated warsProof of Jewis h instigated wars

Napolean Bonaparte:The Jews provide troops for my campai

in Poland,but they ought to reimbursemeThey are a state within the state.TheJews are master robbers of the modernage;they are the carrion birds ofhumanity

(Speeches before the Council of State May 7th, 1806, Book: Antizion byWilliam Grimstard)


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Winston Churchill, UK Prime MinisteThis movement among the Jews in not new.This

worldwide conspiracy for the overthrow ofcivilization and for the predominance of Jeis even more astounding.The same evil

prominence was obtained in the brief perioof terror (Illustrated Sunday Herald, London, February 8,


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Henry Ford, 20th Century U$ Tycoon:Get hold of 50 of the wealthiest Jewi

financiers,the men who are interestedin making wars for their own profit

Control them, and you will put an eto it all.(Cleveland News, September 20, 19


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The Bank of England was establishe1694 to help KingWilliam III out his

governments financial crisis!(Banking & Finance, Bcom Part 2, Prof Amin Khalid, Karac

What crisis ?


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Proof of Jewis h owners h ip of U$Proof of Jewis h owners h ip of U$

The real truth of the matter is that afinancial elementin the large centers

hasowned the governmentsince thedays of Andrew Jackson.(Franklin D. Roosevelt, US President - 19

What financial element


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Therefusalof King George III toallowthecolonies to operate an honest money

system, which freed the ordinary manfrom the clutches of themoneymanipulatorswas probably theprimecause of the revolution.

(Benjamin Franklin, Founding Father of U

What money manipulators ?


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Proof of Jewis h instigated enslavementProof of Jewis h instigated enslavement

I believe thatbanking institutionsare moredangerous than standing armiesIf theAmerican people everallow private banks tocontrol the issue of currency the banks &corporations that will grow up around them

will deprive peopleof their property until theirchildren wake uphomeless on the continentheir forefathers conquered.

(Thomas Jefferson, US President 1843 182


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Proof of Global Financial W ebProof of Global Financial W eb

If you want to remain slaves of the bankersand pay for the costs of your own slavery,letthem continue to create moneyand controlthe nations credit.

(Sir Josiah Stamp, 1880 1941; unofficial talk at Texas UniversityDirector-Bank of England, industrialist, Economist, British Civil Serv


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Stock market cras h & t h e greatStock market cras h & t h e greatdepressiondepression

It was a carefully contrived occurrence.International bankerssought to bring about acondition of despair,so that they mightemerge therulers of us all.(Louis McFadden (US Congressman), sought to impeach President Herbert Hoover &

the Federal Reserve of the Great Depression)


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Wh o is aut h orized to print money ?Wh o is aut h orized to print money ?


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Th e Federal Reserve, Inc TakesTh e Federal Reserve, Inc Takesover U$ goldover U$ gold- - Executive order of Executive order of

th

e Presidentth

e PresidentOn or before May 1, 1933all gold coins, gold

bullions, & gold certificates now owned by th

to a Federal Reserve Bank Branch or agency, orto any member bank of the Federal ReserveSystem.


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Intriguing quotes:Intriguing quotes:

There is something behind the throne,greater than the king himself.

(SirWilliam Pitt, House of Lords -177

The world is governed by very different

personages from what isimagined by those whoare not behind the scenes.(Benjamin Disraeli, British Statesman, 18


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Intriguing quotes:Intriguing quotes:

The Morgan Interest took advantage to precipitate the panic [of 1907]guidingit shrewdlyas it progressed.

(Fredrik Allan, Life Magazin


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Th e gains of Goldsmit h sTh e gains of Goldsmit h sy Service charge for safe keepingy Gaining real asset by issuing paper money of no intri

valuey The sole authority to print currency moneyin the countryy Selling the printed money to the government of the coy Transparency & frequently changing government insu

their designed system

Materialistic point of view: Ideal to be part of the CapiGoldsmith family


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Wh at is t h e future of RIBA ?Wh at is t h e future of RIBA ?


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S h ould Interest based loans be usedS h ould Interest based loans be usedfor national development ?for national development ?

y

Buildin

g of Dam

s ?y Buildi n g of bridges, roads, i n frastructure ?

y To acquire tech n ology ?

y For E ducatio n al progra m s ?

y To pro m ote Pakista n ?

y To spread I sla m ?


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Wh ic h is a greater sin:Wh ic h is a greater sin:Pig farming or Interest based banking ?Pig farming or Interest based banking ?

y Howe v er, there is hardly a n y pig far m in Pakista n !

y No export of pig or its products !

y Yet, abu n da n t bra n ches of i n terest basedba n ks scattered throughout the cou n try !

Essential-Islamic fin 04-interest in controlled environment

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