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Written by Abdun Nur J   
A few of the finer points of usury.

Firstly we must understand the driving force, manifest through indoctrination that has been ingrained to make men love usury with such passion. Take the argument for inflation, if your money does not increase in denomination it will through the mechanism of inflation become less valuable in real terms, therefore we must have interest.

In fact inflation is a mechanism of interest, if the banks create money as a certificate of debt, where does the money for the interest come from, as all money is only the loaned amounts, there are just two ways, the bank can print money and spend it on wages, buildings, giving it to shareholders etc. this devalues the currency by increasing its volume, the second way is through default, as it would be impossible for all the debtors to repay with interest without the money in the system, they are certain to foreclose on a certain number, stealing their assets.


For a more detailed explanation of this visit: www.hazariba.com/index.shtml (Hazariba.com)

Another argument for interest is working capital. As opposed to you working your capital works for you, this is Riba, almost as its definition.

If I was to invest money in a company which paid dividends, if it made a profit, I would in the existing system own shares, which would possibly increase in value, or decrease in value, this is a form of gambling, you have no active role within the company as a general rule so are simply betting on your choice as a possible winner. The value is produced, not through the assets or profitability of the company, but through demand for share certificates which can be artificially exaggerated, as is evident by two facts, the stock market doubles in value every ten years, which necessitates the value of money been reduced as this value is not physical, and in the event of a crash in an instant billions of dollars can be removed from share values, this is only possible if the value is based on deception.

In the usury based financial system only the bankers can create money, which in truth are simply certificates or account entries of debt, however in an Islamic financial system anyone with the inclination can manufacture gold and silver coins (or of any valuable metal) creating real money, as long as they make them the specified thickness and width to comply with the standard as set, this makes it simple to identify forgeries as if placed in a holder will have an exact weight for their size, so to check for purity of the metal a simple scale will do.

COPYRIGHT

 

Copyright is usurious or Riba, to restrict or prohibit anybody copying or improving and marketing any invention or technology simply because you hold a monopoly (as detailed further on) upon it, is exploitation, which impedes fair trade. To handicap society by intentionally restricting the use of a technology or invention simply because you own a copyright, retards the growth and development of industry and the evolution of society through the advancement of new ideas and developments.

The fact you are the first is advantage enough, if you fail to take advantage of this and gain no benefit you can blame nobody else. They argue they have development cost, this is a falsehood, everyone has development costs, if theirs are a little higher the advantage of been the first will out weigh this considerably. Take for example products that are commonly referred to by the manufacturer as opposed to the invention, a vacuum cleaner is called a Hoover, a toilet is called a Crapper, a policemen is called a Bobby, after the prime minister Robert Peel, a demolition saw is called a Stiyl saw, a utility knife is called a Stanley knife, etc. These were the first, but not always the best, given the advantage some lose it, take Hoover, an inventor created a better machine and now Dyson vacuum cleaners are seen as the best.

ROYALTIES

Royalties are usurious or Riba, they represent a form of taxation, and therefore a form of usury, to pay somebody for nothing every time you buy a recording of music, video or software, or a book, is a again a monopoly, to be paid millions for a song that you may have spent a few hours creating can be nothing else, to expect to be paid for a job again and again and again, if everyone lived on this concept how would society manage, the existing system reduces diversity, making individuals with dubious talent world famous, creating idols, idols that represent the very lowest paradigm, selected and promoted by vast conglomerate monopolies, irrelevant of talent. They argue the large production costs of movies demand the protection of their creation, but they also are the first on the market a enormous advantage, without copyright it will force them to price their product realistically, while still generate a great profit, just not an obscene profit.

If a natural system existed a musician, would be just that, a musician, not worshiped or idolised, employed to entertain, working for a living. A writer would write for the love of writing, making a living from the books they sold, people would naturally buy their book as opposed to a copy if they wished to read more of their work, and of course they would be the first to have them available. A right would exist of authorship, you would have the right to stop others from laying claim to your work, plagiarising or altering your work, but only in as far as acknowledgement of authorship.

This is true of film and software, it would naturally keep the cost low, it would remove monopoly and expand the opportunity for many others to produce and create, innovate and invent.

Any intentional monopoly is Riba, this is a fundamental understanding, to control, restrict, or prohibit any market supply would be a situation in which one company controls an industry or is the only provider of a product or service, this is not a natural order.

RENTAL OF DOMESTIC PROPERTY.

 

The bankers have established a business model widely followed, they lend you money at interest, you invest that money in property, whether private or commercial, you extort rental from the inauspicious excluded from the lending of money, they suffer hardship and work hard to maintain their poverty while you live off the immoral earnings of you usurious deal. From the asset you created through the investment of the banker’s money, the bank will lend you more money, which you invest in property and so the cycle continues.

This increases the cost of property to a level of obscenity, making it ever more difficult for the people blocked from borrowing at interest to save themselves from this business model.

To own a thing for no other purpose than to extort money from others, through the creation of money from nothing, is a criminal deception, you in truth have no right to the property, you and the banker claim you own through unnatural debt. Islam forbids such a business model.

(If you intentionally purchase a second property simply for a usurious investment, this would in my opinion forfeits that property within an Islamic system), you can own a commercial property as well as a home, this would be perfectly acceptable, in fact as long as you were using the commercial properties for your own business you could own many.

Letting property is exactly the same as the charging of interest on money. You’re producing an income from your money if its lent at interest; you produce an income from property when letting or your asset in hiring out, the production of wealth for yourself without effort, from the premeditated theft of the fruits of someone else’s labour.

One exception may exist through common sense, but not expressed within the Qur’an itself, of an allowance within strict guidelines for the rental of property as detailed below.

If you inherit a property and do not need it, free from debt, and you are incapable of earning a living for physical reasons, or you are too young to live independently, you could rent out the property until your situation improved and you were able to live without this crutch.

It is argued that there are exceptions to this concept based on utility, for example the renting of a holiday home, it would seem reasonable that when not in use it could be rented out as a service, it also appears that some understand rental as bed and breakfast, this is not usurious, it is a service and totally Islamic, just like hotels, so this is not rental based in usury, being a service and therefore trade.

You might argue that property rental (homes) is a service, under the same logic you could argue that lending money at interest is a service, the difference from the service of bed and breakfast been trade is the return on labour, but there is no labour in rental of homes nor the lending of money, beyond the creation of the facility at the genesis of the exploitation.

THE RENTAL OF COMMERCIAL PROPERTY AND CAPITAL INVESTMENT.

 

The definition of Riba (usury) within business is, ‘the premeditated theft of the fruits of someone else’s labour’, under this concept, it is easy to establish the correct and allowable practices of trade.

In my view if you lend money to a business, the business should simply repay your loan as early as is possible, but some people argue, money should make money and in a moment I will explain their logic, although I disagree, as they earned none of the profit, and once their money is return are no worse off, as for business premises, if you had no use for them, sell them, or make a business with them, but do not rent them, so here’s what they think, namely Mr Masud:

You can lend money to a business on the understanding you would be the last person to take your share of the profits, and you share the risk of loss, beyond any other, as all others would be paid before you.

So if the business venture were to make a loss you would lose some, or all of your investment, the same principle would stand if your were allowing a business to use your business premises‘, you would be the last to take a share, and if no profit were available, no share would be payable.

The workers and suppliers would be paid first, the workers would also above this receive a share of the profit, if any were available, the risk of loss would be held with the investor of money or property, never with the worker or suppliers.

Under this principle the lending of money would not take the fruits of anybodies labour, therefore would not be usury, and so is a form of trade, the investor trading his money or property use, in exchange for a potential share of the profit of the business, this share is established as a portion of the increased profits, above the amount of profit expected without the investment, so if your profits remained the same the investor would receive no share.

If you wish to provide an investment of capital, or to supply property rental, within a new business venture having unknown parameters, no power of control is engendered to the investor, they invest of their own free will, and if they wish to receive a profit without physical effort, they must take the risk and powerlessness that affords, making no demands or requirements that would transform the deal into one of usury.

As a final point against the concept of investing capital, or property, for endless profit payments, if an Islamic financial system were in force, it would be a simple task to organise funds at the cost of repayment alone, making the concept of capital generation redundant, the only difference between a conventional loan would be in the obligation of the individual, or individuals, borrowing it being directly responsible for its repayment, as it would represent physical worth, so the limiting of the liability would not exist, you would be personally responsible for your actions.

SAVINGS

 

If you understand how fiat money is created, you will understand, this itself, is Riba or usury, so to accumulate this money would be Riba, we are forced to exist, through the ignorance and idiocy of the people of the past in this system of oppression, and exploitation, created by the bankers, burdening everyone with debt and stealing the fruits of their labour.

Exchange your fiat money for physical metals, ideally coins, silver been the best investment, hold them physically or outside of the fiat banking system, preferably in a predominantly Muslim country, if you get them through the repository system make sure they are allocated coins.

Muslims are looking for a system of finance that would be Islamic yet run in competition or in parallel to the existing usury system, they seem to be attempting the impossible, searching for a mechanism to achieve the same results as a usurious system. Islam does not allow this present structure, making it impossible to create an Islamic system running in parallel to the existing one. Firstly we must as far as possible abandon the banking system in it present form, both personally and through the fervent educating of Muslims and potential Muslims at every opportunity.

COMMISSION

 

To receive an agreed payment upon a deal, upon the first completion of the agreement is fine, but to receive commission upon the instalments or future payments based on the initial deal is usury, you are receiving payment for no effort.

2:275 On the other hand are those who eat Riba (usury). In greed of money, they run around like someone who has been bitten by a snake. They claim that trade is like usury. This is not so. [Trade is the return on labour that is permissible (53:39), while usury is the return on money.] That is why Allah, in His Infinite Wisdom, has permitted trade and forbidden usury. One to whom the clear Admonition has come from his Sustainer, must abstain from taking usury forthwith. What he has taken in the past, he may keep and his judgment rests with Allah (Not God). (It is better for him to return the interest he has earned if possible, but the law shall not force him to do so). As for him who returns to usury, such are the companions of the Fire wherein they shall abide.

TAXATION

 

As I have explained at length in my previous essay, ‘Sovereignty’, taxation is Riba, to pay a sovereign power is fundamentally against the concepts of the Qur’an, please refer to that essay.

2:276 Allah (Not God) blights usury and blesses charitable deeds with prosperity. Allah (Not God) does not love those who defy His Laws and drag down the potential of the human society.
(Mankind will eventually realize that the interest based economic system will have to be replaced with an equitable System. Allah’s (Not God’s) Laws of Economic Development will erase usury and nurture welfare).


2:219 [Certain things that hinder humans from attaining the aforementioned Noble Objective are now mentioned.] They ask you (O Messenger), concerning alcohol, intoxicants, games of chance, and gambling and money earned without labour. Say, “There is great detriment in these things as well as some benefits for mankind. But the detriment of them is much greater than the benefit of them. They drag down the individual and collective social potential.” And they ask you what they should give. Say, "All that is surplus." Thus Allah (Not God) makes His Messages plain for you, that you may reflect –

The Qur’an is a book based on fundamental concepts, the aspect of Riba, usury, is such a concept and must be comprehensively understood to be in compliance with this foundation, the bankers and those that wish to live off the labour and misery of others have created a system based in Riba. Those that believe themselves to be Muslim have allowed this to pass without impediment, through a comprehensive ignorance of the foundations of Islam, blinded by greed, Hadith or apathy.

Consider again this definition of usury, and apply its principle to your actions; ‘The premeditated theft of the fruits of somebody else’s labour.’ This is the understanding described as the return on money, a return on an asset held with rental taken without labour.

The bankers have created Islamic banking, they buy your selection of goods, then sell it to you at an inflated price, which you then pay back over an extended period, this is usury, you are still stealing the fruits of someone else’s labour, you are gaining not from trade, as they pretend, but from the premeditated theft and exploitation of others. Once again they attempt to dress themselves up in Islam, it is impossible to create an Islamic bank, and equally impossible to have an Islamic system running in parallel to a usury system. They are mutually exclusive.

3:130 Your prime duty remains to preserve a benevolent society, to which usury is a big detriment. Usury is the return on money while trade is the return on labour. Usury or interest appears to you ever-increasing, but Allah’s (Not God’s) Law blights usury and nourishes the acts of caring 2:275-279.

 

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