A VERY ENJOYABLE (AND INFORMATIVE ARTICLE)...PLEASE READ

As I was doing some work, I came across an article written by Dr. Husain Shahata (a professor in Al-Azhar University) on “The International Financial System Crisis in the Perspective of the Islamic Economy”. I read the articles 3 times because the paper was presented in a simple and easy-to-understand way with no big financial jargons that could confuse a normal layman – this is good because economic crisis is the “in thing” now where even the man on the street is all ears when it comes to talking about “ECONOMY”…

His introduction to the article is very catchy and it could just grasp the attention of anyone (yours truly, included) and it’s the painful truth…"The economists of the man-made economy have predicted the collapse signs of the socialist economic system because of its concepts & principles which contradict the human nature and conflict with the Islamic rules & regulations. Similarly, the economists of the capitalist economic system have predicted the collapse signs thereof because of its concepts & principles which contradict the orders of Allah The Almighty and undermines the values & morals. It is relies upon the monopoly and the usury interests (Credit and loans against interest) which are the most vicious evil in the Earth and the motive behind worshipping money, controlling the borrowers by the lenders, restricting their freedom, stealing their business & homes and causing dangerous social & economic effects.”

He further explained the aspects of the international financial system crisis and derived a statement – “The right diagnosis of the crisis is the master key for finding the right remedy”.

So, what is the right diagnosis? Have all the economists in the world been so wrong?

Well, according to the author, famous economists worldwide, including winners of Nobel Prize like Maurice Allias said: The capitalist economy system is depending on certain concepts and rules which are the main cause of its collapse if not amended immediately.

A real shocker, huh? Or maybe, not.

The authors stated 7 reasons for the current crisis :

First: The economic morals corruption such as: monopoly, deception, the fabricated rumors, lies, fraud, exploitation and the delusive transactions which all caused injustice treatment by the wealthy people and creditors against the poor and debtors. This injustice will make the wronged people complain from injustice and the creditors will complain from debtors and the result will be social revolutions when they refrain from repaying their debts and loans.

Second: Money became the substance of tyranny and the weapon of the tyrants for controlling policies and taking the sovereign decisions in the world to the degree that the materialists became worshippers of money.

Third: The usury banking system relies on the interest rate system and operates within the frame of dealing, trading, purchasing and selling of debts. Whenever the interest rate of the deposit increases, the interest rate of the loans given to individuals and companies will increase similarly and all of this will benefit the banks and financial brokers while the borrowers will suffer injustice in paying the loans taken by them for the purpose of consumption or production. Some economists, like Adam Smith, the father of economists, said: "The real development and the rational use of the production factors will not be achieved unless the interest rate became nil" and they considered the alternative method is the system of sharing profits and losses because it enhance stability and security. They further said: "The interest rate system will make the money goes to the hands of small group of people who will control the wealth totally".

Fourth: The traditional financial and banking system relies on the method of scheduling the debts against a higher interest rate or replacing the due loans with new ones of higher interest rate, exactly like what the Arab before Islam was saying: (Pay now or increase the interest rate). This process will cause additional liabilities on the borrowers who were unable to repay the first loan due to the higher rate of interest.

Fifth: The international financial system and the financial markets system are mainly depending on the financial derivates system which, in turn, depends on delusive transactions which, in turn, depend on probabilities & possibilities i.e. there are no true exchange of goods and services, it is just gambling and betting. Not only this, some of these transactions are depending on credits taken from the banks in the form of loans which can lead to a financial crisis in case of loss.

Sixth: The bad manners of the financial brokerage institutions which induce people to take loans, deceive them and exploit their ignorance to take loans from the financial institutions. They request high commissions if the risks were high and the borrower alone will bear the adverse consequences thereof and this ultimately will lead to the financial crisis.

Seventh: The expansions in applying the credit cards system (Overdraft) which caused high financial liabilities on the users who will bear higher interest rates if he could not repay the debt until he is put to jail, mortgage his car or house. This is exactly what happened to many holders of such cards, caused them confusions in the budget of their homes, and led finally to a crisis in certain usury banks.

There’s more of the article than what have been reproduced above. I highly recommend the article – it is one of the most enjoyable read I’ve had this week. The author really save the best piece of the article for last, i.e., in his conclusion :

To the people who are confused in their life, straying in darkness of the nights, hurry up to Islam again.

To those who wish to reform society and get rid of its problems, difficulties and rescue it, hurry up to Islam.

To those who are standing at the door of reform and hesitant about the right way to be taken, hurry up to Islam.

To those who were confused with means and lost their aims, hurry up to Islam, it is the right way.

To those who spent their life in fruitless experiments under the instructions of hesitant minds and confused thinking, hurry up to Islam.

To those sincere & faithful people, hurry up to Islam.

"ALLAHU AKBAR"