06-13-2004, 06:33 AM
Dear all
i would like all of u to read a book on "Riba" by Maulana Moudoodi.
i have read this book and have no doubt that interest in any of its form is HARAM. the best thing about this book is that its not written in a traditional way EITHER DO IT OR U R KAAFIR, all the arguments are backed by different rations aspects and logic and with diff dimensions.
unfortunately i dont have enough time to summarise the crucks of that book, and i recommend all of u study and understand it urself.
with regards to the original question that why ineterest is Haram when inflation exists in the economy, my firend as u r a student of accountancy/economics u would know that Interest is ONE of the fundamental causes of INFLATION. i do agree that neither parties (lender and borrower) should suffer, in that case there is a very simple solution that whenever Mr X wants to lend money he should back the value of Loan with some commodity whose value is stable for eg gold, silver, or anything stable in his country's economy, in such a case neither party will suffer.
now u would say money itself is backed up by gold reserves in the central/state bank, the answer to this is NO, no country in this world back up 100% of issued currency by gold reserves, infact it is even less than 10% in most countries. u know Currency itself has no intrinsic value, it is just a piece of paper which cannot depreciate, that is why RENT is HALAL and RIBA is haram.
another dimension to support my argument is that Islam is also a Social Religion and puts great emphasis on helping poor people. if i ask u to lend me 100,000 rupees u will reject me staright way, why? because u dont have 100,000 rupess, similarly, lenders only lend that part of money which is surplus to them, Islam being a social religion encourages rich people to lend their surplus funds on a non-interest basis.
i have got many strong points, but the time doesnot allow me to write.
plz do read the above mentioned book and i m sure all queries re ineterest will be resolved.
Kind Regards
Azeem Shah Khan
i would like all of u to read a book on "Riba" by Maulana Moudoodi.
i have read this book and have no doubt that interest in any of its form is HARAM. the best thing about this book is that its not written in a traditional way EITHER DO IT OR U R KAAFIR, all the arguments are backed by different rations aspects and logic and with diff dimensions.
unfortunately i dont have enough time to summarise the crucks of that book, and i recommend all of u study and understand it urself.
with regards to the original question that why ineterest is Haram when inflation exists in the economy, my firend as u r a student of accountancy/economics u would know that Interest is ONE of the fundamental causes of INFLATION. i do agree that neither parties (lender and borrower) should suffer, in that case there is a very simple solution that whenever Mr X wants to lend money he should back the value of Loan with some commodity whose value is stable for eg gold, silver, or anything stable in his country's economy, in such a case neither party will suffer.
now u would say money itself is backed up by gold reserves in the central/state bank, the answer to this is NO, no country in this world back up 100% of issued currency by gold reserves, infact it is even less than 10% in most countries. u know Currency itself has no intrinsic value, it is just a piece of paper which cannot depreciate, that is why RENT is HALAL and RIBA is haram.
another dimension to support my argument is that Islam is also a Social Religion and puts great emphasis on helping poor people. if i ask u to lend me 100,000 rupees u will reject me staright way, why? because u dont have 100,000 rupess, similarly, lenders only lend that part of money which is surplus to them, Islam being a social religion encourages rich people to lend their surplus funds on a non-interest basis.
i have got many strong points, but the time doesnot allow me to write.
plz do read the above mentioned book and i m sure all queries re ineterest will be resolved.
Kind Regards
Azeem Shah Khan
