In the name
of God the Compassionate, the Merciful, is the formula a
Muslim recites at the beginning of any and all undertakings. It
is likewise the fundamental starting point of Islamic economics. Compassion and
mercy are two elements without which our humanity is lost, and if our
humanity is to be maintained within any system, these two elements are required.
Capitalism never had these elements and never wanted them
as they interfered with its primary policies of maximum
accumulation and maximum profit.
Islam rejects these
aspects of capitalism. Islam rejects the ethos whereby the measure
of human worth is degraded to a toting up of bank balances. We as
Muslims reject that system of economics whereby millions of human
beings have to starve to death and suffer utter deprivations in
order that a country can pay off extortionate interest payments on
foreign debts. We also reject that system of economics whereby a
food mountain in one part of the world is refused to the starving in
another, so that the international price of this or that commodity
is not threatened.
Islam, the religion
of serenity, humanity and practicality, seeks the alleviation of
economic degradation and suffering and seeks to re-establish human
beings at the centre of its economic considerations with the
furtherance of humanity as its ultimate goal. And as humanity cannot
progress one iota towards contentment without a recognition of God,
Who lies at the very heart of that humanity, Islam seeks the
implementation of the revealed instructions of God as its day to day
practice.
Therefore, as God is
compassionate, His revealed system of economics is compassionate. He
informs us:
'I, Allah, am the best knower. This book, there is no
doubt in it, is a guide to those who keep their duty (Qur'an, 2;1-2)
... Those who swallow usury cannot arise except as he whom the evil
one has demented by his touch. That is because they say trading is
like usury. But Allah has allowed trade and forbidden usury. ...
Allah will blot out usury and cause charity to prosper.... 0 you who
believe, keep your duty to Allah and relinquish what still remains
due to you, if you are indeed believers. But if you do not, then
expect war from Him and His messenger; and if you repent then you
may keep your capital. Wrong not and you shall not be wronged. ...
And if the debtor is in difficulty let there be a postponement till
he is in ease, though if you remit it as alms it would indeed be
better for you, if you only knew.' (Qur'an 2;275-280).
God is just,
therefore His Qur'an promotes justice and ethics in our commercial
and economic activities.
'O you who believe, when you contract a
debt for a fixed term, commit it to writing. And let a scribe record
it between you with fairness.... And let him who owes the debt
dictate the terms, and also observe his duty to Allah, his Lord, and
not diminish anything from it."" (Qur'an 2;282)
As God is Wise, the
economic system in Islam is supremely practicable and conducive to
human survival insisting on recognising human efforts and labour as
the primal element and not capital, which should be a useful servant
and not the cruel master it has become under the present system
devoid of mercy. Islam recognises the link between economics and the
relationship it defines, and the socialisation of the individual
operating within that system. The alienated relationships defined by
the institutions of interest are dehumanising resulting in the
primacy of money as a self-reproducing all powerful entity which
subjugates the human being and his skills to the status of a
commodity to be hired or fired at will. Islam rejects this concept
most vehemently.
Interest, or usury
for the two are the same, is not only socially destructive, but it
is without question economically unstable, inequitable and all too
often leads to war. Every truthful Western economist and every great
thinker has denounced interest and those who profit by it. Adam
Smith, David Ricardo, John Ruskin, John Maynard Keynes, Rodger
Scruton, have all criticised the ethos of usury. Abraham Lincoln of
course was assassinated because he had the public interest as his
priority, when he issued his greenback dollars in line with the
constitution of the United States which had enshrined in it the
exclusive right of the state to introduce all currency into
circulation free of interest, a right which has been denied to us
since 1694 with the establishment of the Bank of England, and to the
American people since 1913 with the setting up of the privately
owned Federal Reserve. The privatisation of money took place in
England almost three hundred years ago following the inglorious
revolution funded by the Amsterdam banking families and their
dream-ticket king, William of Orange, who with the now confirmed
financial support of the Amsterdam banking families established in
perpetuity our national debt. This had grown from the original 1.3
million in 1694 to a staggering 171,000 million by 1985/86. Mrs.
Thatcher has, believe it or not, doubled it since 1979 when it stood
at around 84,000 million.
Lord Robert Boothby
in his book 'The New Economy' published in 1944 states that:
"it was
a tragedy to watch the nation savaging herself trying to maintain an
economic system and theory, which had long since ceased to have any
validity",
and before his retirement he wrote to Mr. Arthur Swan
regarding the foreword to his as yet unpublished magnum-opus 'The
other Road to Serfdom' that the only way out of our present
difficulties was a complete reform of our monetary system which he
had been trying to bring about for 64 years.
It has often been
the case that anyone who dared to question the validity of the
interest system in the past was assassinated or slandered in order
to preserve its hegemony, and as the Holy Qur'an is the last
remaining obstacle in the way of total global control, it has
naturally come under fire from these self same institutions which
emasculated the Christian opposition to the abandonment of the laws
of usury some 160 years ago. Thus the attack on the veracity of the
Qur'an, the angel of revelation and the prophet Muhammad is evidence
of this continuing crusade to extinguish its standing in the eyes of
close to one fifth of the world's population and discourage the ever
growing interest in this book among the disillusioned thinking
people from the traditionally non-Muslim population.
It is no longer
acceptable or wise to disregard the conclusions reached by these
patriotic pillars of Western civilisation who through sound
reasoning and compassion recognised the destructiveness and
irrationality of this institution which was condemned by God from
the beginning: the institution of interest.
But can interest
really be that bad, are there any direct, tangible effects of
interest whereby we can determine its impact? Yes, there are. So
many in fact that it is hard to see the wood for the trees. If you
have a mortgage and are beginning to feel the pinch, you may wonder
why on earth with your mortgage repayments it is you who has to foot
the bill for Mr. Lawson's futile attempts to reduce inflation by
ever increasing interest rates when the solution is elsewhere? Why
are you having to pay for his mistakes? Or why is it that when the
third world has in aggregate terms paid off the original capital
loaned to them many times over, through interest payments they are
still being bled dry by the continuing burden of debt repayment? Why
is it that Sudan, which five years ago was a food exporter, ploughed
up its food producing areas to grow cotton to earn foreign currency
in order to pay off its debts, and let its people starve? This is
the legacy of interest. As Winston Churchill said,
'never in the
field of human conflict has so much been owed by so many to so few.'
These cardinal points of Islamic economics operate within a
financial system of profit and loss sharing. Money is lent on a
basis whereby the lender will take a reasonable percentage of the
profits of any venture together with any loss. Under an Islamic
system of economics not only the one with capital to invest
participates in the profits but also the workers who should always
be part of the equation. They should be able to directly benefit
from their hard efforts by having a profit share or bonus.
The attempts by
money lenders under our present system to turn us into latter day
serfs, keeping us just on or above the poverty line, even well below
it in some cases, must be brought to an end. It is unjust under any
system to allow people to profit by fraud and extortion. An economy
based on profit or loss sharing with the crown or state resuming
their rights to issue our legal tender free of interest as it was
before (and it works) as already admitted by many eminent and
impartial economists would be far more stable, efficient and vastly
more equitable than the present day situation.
It has been said
'when all else fails read the instructions', and Islam has had the
best instruction book for 1400 years which Ibn Khaldun in his
masterwork 'al-Mukaddima' pointed out in 1377AC as acknowledged by
Hugh Trevor Ropor and Arnold Toynbee who wrote:
'Ibn Khaldun has
succeeded in drawing conclusions which are of living interest for us
today. They have a real bearing on our current problems, practical
and theoretical. It would, indeed be no exaggeration to say that
this is the most comprehensive and illuminating analysis of how
human affairs work that has been made anywhere.' (from the preface
to an English translation of lbn Khaldun's work published by
Routledge Kegan Paul).
On taxation Ibn
Khaldun states that it should be noted that at the beginning of a
just dynasty or government large returns are achieved through small
tax assessments, but as the government becomes unjust small returns
are achieved through large tax assessments.
Keynes for example,
categorically advocated such a system in order to alleviate
unemployment, inflation and to preserve our traditional industries
which we now see either closed or in the process of closing due to
their marginal efficiency of capital being undermined by the
infantile analysis that interest can cure inflation which is like
saying that henceforth petrol will be used to put out fires, and
while ever good men and women remain silent we must all remain
trapped in this house of madness with its dubious logic and pride
which prevents them from recognising that their actions spread the
economic equivalent of AIDS (Acquired Investment Deficiency
Syndrome). This will, unless counteracted soon, drag us all jointly
and globally into an abyss of debt and misery for the majority on
behalf of the few. Contrary to "Ivan (the terrible) Boesky" greed is
not healthy.
In 1932 Neville
Chamberlain, chancellor of the exchequer, fixed the bank rate at 2%
and set up the exchange equalisation account which prevented the
flow of capital and credit overseas and rather than have money lying
idle at 2%, people had to do something constructive with it by
investing in this country and its people. It was during this period
that we saw the biggest domestic building boom this country has
experienced in so short a time. This 2% rate was maintained until
the early 1950's. Its removal then set the stage for our current
problems and those of the 2nd and 3rd worlds.
This fraudulent
system of creating credit out of thin air and confidence was
developed by the Goldsmiths in the mid-17th century. When they
discovered that they could issue credit based on the treasure in
their strong rooms to a ratio of nine to one and that ratio still
persists to this day where cash in the tills which the banks obtain
free of interest forms the basis of this top heavy unstable
mechanism. To illustrate how it works based on actual figures
extracted from the Bank of England in 1689, although it only had
35,000 in its tills, it still issued bank notes up to the value of
1,657,000. This same mechanism would work of course without the
interest factor, and as it already has worked for the past 300 years
or thereabouts on the basis of the state providing 10% of the money
in circulation at zero interest, it is obvious that it would be of
tremendous benefit to the whole economy if the state issued the
other 90% as well to industry, commerce and our public services free
of unwarranted debt, only expecting a return of the capital amounts.
We have had prepared a redemption scheme for the city of Cheltenham
based on figures provided by the treasurer's office which would
provide a solution for all councils in the United Kingdom and, were
it adopted, provide a formula for the resolving of the nation's
debt. Courtesy of Mr. Arthur Swan in Cheltenham, copies are
available from our party office for everybody to clearly see that
interest is the public enemy number one.
Therefore, the
institution of interest must be stopped, and replaced with a just
system which is economically coherent and equitable, a system of
profit and loss sharing with a strong emphasis on forgiveness and
mercy which Poland will need just as we need it and every man, woman
and child on the face of the earth. The existing banking network
could once more transform into an honourable institution concerned
with the safe keeping and most efficient investment of real
wealth.
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