Sharia Banking Deception :-
Q: According to the scholars of Muhammadan Islam, interest is prohibited.
How is it possible to conduct trade in any manner without interest?
Is it possible that Muhammad - who was a trader on behalf of his wife Khadijah - would forbid common interest?
A: Since 9/11 the financial world in the West has been awash with the Islamic version of commercial transactions, without INTEREST.
In Fact and Reality no such transactions can exist even among family and friends because interest is exactly what makes the world trade functioning.
Let me now, step by step, DEBUNK this another vile conceptual Muhammadan Muslim deception to add to the others that I have already revealed regarding who Allah truly is; that Muhammadan Islam is a CULT belief system and not a religion; the Islam means SUBMISSION and not PEACE; that Jihad is Physical war against all unbelievers -currently 80% of humanity who are not followers of Muhammad called Ummat al Kuffar or Nation of Infidels - plus many more such mendacities.
Usury is from the Latin usura meaning "interest". It was defined originally as charging a fee for the use of money. This usually meant interest on loans, although charging a fee for changing money (as at a bureau de change) is included in the original meaning.
In modern terminology, Usury is the action or practice of lending money at UNREASONABLY high rates of interest.
It is very important that the listeners should be made aware of the following traditions regarding Muhammad and trade:
According to the biography of Muhammad as accepted universally by his followers, he was taken as youth on trading trips by his uncle Abu Talib who had become the guardian of the orphaned Muhammad.(Ibn Ishaq, p81).
The following is the tradition regarding Khadija & Muhammad:
Khadija (who was a successful businesswoman) needed the services of an honest individual to manage her trade. At that time, Muhammad who was 22 years of age, was recommended as a suitable choice for the job by several notable people of Mecca. Due to his success in various commercial related ventures, Khadija prospered in her business.
*** From the above, one must logically assume that Muhammad had to deal with very important trading transactions, both before and after his marriage to Khadija, that required the use of INTEREST on money, either lent or borrowed.
It is a historical FACT that such commercial agreements and transactions were taking place thousands of years before Muhammad. Hence he must have understood very well that NO BUSINESS could be conducted WITHOUT the use of the medium of INTEREST excepting in the cases of BARTER dealings.
He also may have encountered cases when EXORBITANT Interest rates were either demanded or applied.
In any case, based upon Muhammad's background as a merchant, it is INCONCEIVABLE that he would have PROHIBITED the ORDINARY use of INTEREST by his followers ***
In the Quran, Interest is called (Riba) which is copied from the Hebrew (Ribbith) and is vehemently condemned. In the Bible, paying interest on loans is NOT prohibited. What is prohibited is interest at an exorbitant and unconscionable rate.
The Quran rightly condemns such rates of interest in the following Quranic verses~
Al Baqara 2:275 "Those who devour usury [ya^ akuloona^l riba] will not stand except as stands one whom the Evil One by his touch hath driven to madness. That is because they say: "Trade is like usury but Allah hath permitted trade and forbidden usury"
*** Since Allah permitted TRADE and TRADE had been functioning with INTEREST for several thousand years, then logic dictates that in Muhammmad's mind, USURY meant actually EXORBITANT rates of interest ***
Al Baqara 2: 276 "Allah will deprive usury [riba] of all blessing .. …"
Al Imran 3: 130 "O ye who believe! devour not usury [riba] doubled and multiplied but fear Allah; that ye may prosper"
*** The fact that in the verse above the terms "...doubled and multiplied..." is used with such vehemence, could have only applied to EXORBITANT INTEREST RATES ***
Al Nisa 4: 161 " That they [the Jews] took usury [al riba] though they were forbidden; and that they devoured men's substance wrongfully..."
*** If Usury in the verse above means common interest, then Muhammad's Quran FALSELY, IGNORANTLY and of course Maliciously ACCUSES the Jews of breaking their own Law regarding interest.
Moreover, there is no concept of 'usury' in the Torah since lending with interest is considered a commercial freely agreed bilateral conract between two parties***
Interest, CONTRARY to the Quranic verse above was NOT FORBIDDEN at all, especially between an Israelite and a stranger since a stranger also would not lend money to a Jew without interest.
Deuteronomy 23: 20 "You shall not lend upon interest to your brother; interest of money, interest of foodstuff, interest of anything that is lent upon interest;21. To a stranger you may lend upon interest; but to your brother you shall not lend upon interest…"
It should be understandable that since a non Jew would only lend a Jew with interest, then the reciprocal should also be valid.
But if Usury in the earlier Quranic verses meant EXORBITANT interest then the verses makes PERFECT sense since under this circumstance it should be PROHIBITED.
It beggars belief that Muhammad - who was after all a trader before and under his wife Khadija - would prohibit common interest especially concerning his own Quraysh trading tribe. There is absolutely no doubt that Riba could only have meant EXORBITANT interest.
All the misunderstandings regarding interest in trade in the Islamic world is due to the fact that unfortunately for his followers, Muhammad died before having had explained the meaning of the word to them.
It was his ignorant, unlearned and mostly illiterate companions, because they lacked his guidance, extended it in a very illogical uninformed manner.
Al-Tirmidhi Hadith 2830 Narrated by Umar ibn al-Khattab
The last verse to be sent down was that on usury, but Allah's Messenger was taken without having expounded it to us; so leave aside usury and whatever is doubtful...
*** Al Khattab's comment "...so leave aside usury and whatever is doubtful" is one among the most astute regarding the subject of usury.
He is implying that, since Muhammad had not detailed its meaning, 'Muhammadan scholars' should not make a huge and contorted system to circumvent what should be a natural state of affairs***
That is why the Muhammadans scholars (Ulama) worked out an impressive but convoluted body of literature on interest to circumvent it 'theologically' but not Logically.
All their contortions and shenanigans do not change an iota of the fact that interest is still collected but by another name.
Thus they try their utmost to defy the truth of "A rose by any other name, is still a rose".
Although interest is prohibited - under Sharia' law - for the allegedly noble reason that all earnings should be as the result of one's own sweat and effort, none the less, based entirely upon their own Arabic historical records, Muhammad and his followers - unemployable thugs in general - found much simpler ways of enriching themselves.
They did so by dispossessing, enslaving, conquering and plundering others of their produce and wealth, over three continents for the last 1400 years.
In modern times the Muhammadans have created an elaborate methodology to circumvent this prohibition and disguise it under an 'Islamic' cloak of terms and financial arrangements but with exactly the same results, which is, to either pay or receive interest but under other names.
What the Muhammadan records prove is, that when it was applied to those who were not his followers - UNBELIEVERS - such as Jews and Christians to start with, he demanded and EXTORTED through a poll tax called Jizziyah in some cases up to 50% of their produce without any physical or financial input from him or his followers' side.
The Zoroasterian Persians, later suffered the same fate. This of course was and is not considered by the Muhammadans as an unfair or unjust deal.
Al-Tirmidhi Hadith 2826 Narrated by Abu Hurayrah
Allah's Messenger said, "Usury has seventy parts, the least important being that a man should marry his
*** The term 'usury' used in the above context, has no commercial connotation whatsoever. In fact, it is used as a means of expressing an OBSCENE degree of IMMORALITY, that a son should marry his mother.
Since no commercial transaction is involved, then USURY in this instance, can only confirm that its meaning applies ONLY to exceptional cases pertaining to totally IMMORAL, and or UNJUST circumstances, such as, EXORBITANT INTEREST RATES ***
Sunan of Abu-Dawood Hadith 4858 Narrated by Sa'id ibn Zayd
The Prophet said: "The most prevalent kind of usury is going to lengths in talking unjustly against a Muslim's honour..."
*** Once again is the term 'usury' used without any relationship to commercial INTEREST.
Once more it is addressing the issue of EXCESS.
Hence, based upon the Muhammadan records themselves, regarding Muhammad's trading endeavours on behalf of his wife, the commercial needs of his Quraiysh tribe and the use of the word RIBA to mean EXCESS not related to business, shows that the IGNORANT followers of Muhammad got it all wrong, and put themselves in a totally unnecessary straight jacket***
Principles of Sharia banking:
Islamic banking has the same purpose as conventional banking: to make money for the banking institute by lending out capital.
But, because Islam forbids simply lending out money at interest (riba), Islamic rules on transactions (known as Fiqh al-Muamalat) have been created to avoid this problem.
The basic technique to avoid the prohibition is the sharing of profit and loss, via terms such as profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijar).
In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the bank's profit cannot be made explicit and therefore there are no additional penalties for late payment.
In order to protect itself against default, the bank asks for strict collateral. The goods or land is registered to the name of the buyer from the start of the transaction. This arrangement is called Murabahah. Another approach is EIjara wa EIqtina, which is similar to real estate leasing.
Islamic banks handle loans for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paid).
An innovative approach applied by some banks for home loans, called Musharaka al-Mutanaqisa, allows for a floating rate in the form of rental. The bank and borrower form a partnership entity, both providing capital at an agreed percentage to purchase the property. The partnership entity then rents out the property to the borrower and charges rent.
The bank and the borrower will then share the proceeds from this rent based on the current equity share of the partnership. At the same time, the borrower in the partnership entity also buys the bank's share of the property at agreed installments until the full equity is transferred to the borrower and the partnership is ended.
If default occurs, both the bank and the borrower receive a proportion of the proceeds from the sale of the property based on each party's current equity. This method allows for floating rates according to the current market rate such as the BLR (base lending rate), especially in a dual-banking system like in Malaysia.
There are several other approaches used in business transactions. Islamic banks lend their money to companies by issuing floating rate interest loans. The floating rate of interest is pegged to the company's individual rate of return. Thus the bank's profit on the loan is equal to a certain percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-sharing arrangement is concluded.
This practice is called Musharaka. Further, Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank so that both profit and risk are shared.
Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing the lender to monopolize the economy.
Islamic banking is restricted to Islamically acceptable transactions, which exclude those involving alcohol, pork, gambling, etc. The aim of this is to engage in only ethical investing, and moral purchasing. Islamic Banking and Finance Database provides more information on the subject.
In theory, Islamic banking is an example of full-reserve banking, with banks achieving a 100% reserve ratio. However, in practice, this is not the case, and no examples of 100 per cent reserve banking are observed.
Islamic banks have grown recently in the Muslim world but are a very small share of the global banking system. Micro-lending institutions founded by Muslims, notably Grameen Bank, use conventional lending practices and are popular in some Muslim nations, especially Bangladesh, but some do not consider them true Islamic banking.
However, Muhammad Yunus, the founder of Grameen Bank and microfinance banking, and other supporters of microfinance, argue that the lack of collateral and lack of excessive interest in micro-lending is consistent with the Islamic prohibition of usury (riba).
Islamic banks now position themselves as the moral alternative to Western banks, and 3 in 4 Muslims in England prefer sharia-compliant banking products over their Western banking counterparts. In Europe, Islamic banking is now reaching beyond the Muslim community, seeking to become the preferred choice of non-Muslims for banking transactions, citing their products (and banking ethics) are superior to the Western banking system. In London alone, some 20% of inquiries into Islamic banking products is now coming from non-Muslims.
As Sharia banking becomes increasingly accepted as an alternative to the Western model, the opportunity to spread Islamic ideology to non-Muslims increases. According to Sheik Yousef Al Quardawi (a leading Sunni cleric, spiritual leader of the Muslim Brotherhood, and head of the fundamentalist European Council for Fatwa and Research),
the introduction of Islamic banking into the West will be the vehicle through which Islam will establish a caliphate (Islamic government rule based on the Quran) throughout the world.
According to Helena Christofi of The Brussels Journal, "Replacing western institutions with a global Islamic order is, in fact, the goal of Al-Qaradawi's Muslim Brotherhood. According to its founder, Hassan Al-Bana, the Brotherhood seeks to "[reclaim] Islam's manifest destiny; an empire, founded in the seventh century, that stretched from Spain to Indonesia," and its 1982 "secret plan" exhorted its members "to channel thought, education and action in order to establish an Islamic power on the earth."
The Muslim Brotherhood is a central link between Islamic banking and Islamic fundamentalism; the first Islamic bankers were members of the Muslim Brotherhood who wanted to use "the structural power of bank ownership" to advance the fundamentalist movement in the Gulf States in the 1970s.
Today, its most powerful progeny, the Kuwait Finance House, covertly finances fundamentalist groups in Kuwait and abroad."
As Islamic institutions gain a financial foothold in the Western banking and investment community, they could exert political pressure or force these institutions to offer Sharia-compliant banking products (which in turn further solidifies Islamic ideology into the West).
Should Sharia banking become the accepted form of commerce in the Western world, the Islamic clerics would have a powerful platform to espouse their ideology and significantly alter how life in the West is lived.
The influence and control Sharia banking could impose on life in Europe and the US, both in the governmental and private sectors, is considerable.
And once financial control is wrested from the Western banking system, the Golden Rule of Finance becomes the governor of life.
The Golden Rule of Finance simply states, "He who has the gold, makes the rules." For Europe, it may be too late....and the US isn't far behind, unless they wake up"
That is why I have repeatedly pointed out that Sharia in any shape or form must never be allowed to take root in our democracies to pollute or soil our soil.