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 Post subject: How bad is Riba (usury - interest)
PostPosted: Fri Nov 03, 2006 10:45 am 
Usury is prohibited in Islam this is very clear in many verses of the Quran:

275. Those who eat Riba (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitan (Satan) leading him to insanity. That is because they say: "Trading is only like Riba (usury)," whereas Allah has permitted trading and forbidden Riba (usury). So whosoever receives an admonition from his Lord and stops eating Riba (usury) shall not be punished for the past; his case is for Allah (to judge); but whoever returns [to Riba (usury)], such are the dwellers of the Fire - they will abide therein.

276. Allah will destroy Riba (usury) and will give increase for Sadaqat (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners.

277. Truly those who believe, and do deeds of righteousness, and perform As-Salat (Iqamat-as-Salat), and give Zakat, they will have their reward with their Lord. On them shall be no fear, nor shall they grieve.

278. O you who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onward), if you are (really) believers.

279. And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums).
The Noble Quran : Surat Al-Baqarah (Chapter 2)

Now that it is very clear that it is prohibited, I will try to analyze it logically and show how it destroys the economies:

Let us say there is a house that costs $50,000, if there is no banks that deal with usury few people would have $50,000 cash to buy it so the number of customers is very low, this forces the owner to keep the price low so people can buy.

Now through banks almost everybody can buy this house, so the number of customers rises exponentially! So the same owner would say why I should sell it for $50,000; I can sell it easily for $75,000 or more.

The buyer will pay the bank at least $100,000 for $75,000 s/he borrowed, so we see in this estimation the house price got doubled.

Countries print money that they have equivalent asset (gold, etc.) values of. The country is fooled to believe that its assets were doubled, while their assets remained the same so what we get is inflation that leads to broken economies and eventually wars.

The house real value is $50,000 while the country printed $100,000 or more believing its value increased while it didn't.

This is one side, I didn't get into insurances and other usury based systems that increase everything's value as well. For sure few will afford paying for their doctor visits without insurances, so doctors and hospitals won't be charging that much.


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