Why Islam restricts us from Interest (sood) ? There are several reasons behind it, which I would like to highlight in Practical world. Before understanding it all we must need to understand how Money & Financial Markets are operated. . Gold and Silver is real money while currency and notes represent this money, Central banks should hold an amount of gold and issue currency against that, But whole of the currency is not supplied to public. Based on money, local banks hold, can lend up to 10 times of the money they hold so actually they Own less money but virtually Lend money to public 10 times and charge interest 10 times. . Now we start; Banks would like to lend more and charge high rate of interest so they borrow money at low rates and lend 10 times of it. Imagine if a Bank borrows 100 Rs. but can lend 1000 Rs. so when it lends suppose 100 Rs. it means it lends money worth 10 Rs. remaining 90 Rs. are withheld, so shortage of money occurs and Poverty increases because of low level of money circulating in the country. As I described earlier that banks can Lend 10 times of money they Own, so 14% interest means 140% simply, so major income of a company and as whole of a country shall be used to compensate interest. so low income, increases poverty. Same fact shall be the cause of high level of unemployment, again increases poverty. A further is that when low level of money is circulated and more be held it shall affect Purchasing power and thus low level of production and thus low GDP again increase shortage of substances and products in markets so a competition increases for buying a product available in the market so prices increase and inflation increases and poverty increases from all sides and you dip and drowned down in to interest day by day and one day shall come you ll forget principal amount and interest will be difficult to pay, if simple interest is charges, and if it is compound rate then you shall not be able to pay your debts even you become a slave. . Islam the most modern and updated religion of the world forbids the slavery and teaches us that everybody has been created Free. Interest system designed by Jews just to make the world a Slave and Poor. . Think
Posted on: Tue, 04 Mar 2014 06:28:01 +0000
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