The nature of the impending economic crisis.

Understanding the nature of the impending economic crisis and positioning ourselves to counter their schemes/plotting.

By looking at the model of Islamic Banking today and the financial contracts that it upholds, we immediately find the disparities in both the value of the goods exchanged and a disparity in the timing of the transactions. These disparities can be defined as 'Riba Al Fadl' (Disparity in the number of goods) and 'Riba Al-Nasiah' (Disparity in the timing of the transactions).

Not only do we see how Islamic financial institutions have corrupted traditional Islamic finance and trading contracts, but how paper money, a promissory note, is not acceptable in transactions as it represents the promise of paying a certain value, but is not value within itself. This results is the practice of Riba Al-Nasiah, a disparity in the timing of the goods given and the goods received.

But over the two days of discussing the implications of Riba in our economy today, a ray of hope also emerges; a solution to the current global economic crisis is brought to light. "Islam stands unique in understanding the nature of this impending problem (the economic crisis) and in understanding the solutions to this problem".

By looking at the unique model of Islamic market places we understand that there is a way out of this secular financial system.

Topics such as "Money and markets", "Guilds and contracts", "Banking and paper money" uncover how the global economy has been moulded into what it is today.

By comparing our current economic structure with the traditional structure and practice of trading at the height of Islam, during the time of the Messenger ﷺ the misinterpretation of Islamic practices is made completely clear. Chief among the misinterpretations has been the redefinition of Riba that has taken place in the last 200 years which has conveniently resulted in the rise of a modern interpretation of Islamic finance, Islamic economics, Islamic contracts and laughably, the creation of Islamic Banking, a joke by Islamic standards, let’s not even begin to touch upon the issue of digital and crypto currencies, a monetary system set up to hoodwink the naïve within the Ummah to eventually segway them to them into a government regulated alternative.

The modern interpretation of Riba is understood by most as 'interest'. Interest however is only ONE part of Riba. If we look at the definition of Riba from the Tafsir of Kadi Abu Bakr ibn Al-Arabi we find it says "Any unjustified increment between the value of the goods received and the value of the goods given." Increment here means something has been added to the transaction that isn’t justified by its nature. Any increase of goods or time added to a transaction."

By looking at the model of Islamic Banking today and the financial contracts that it upholds, we immediately find the disparities in both the value of the goods exchanged and a disparity in the timing of the transactions. These disparities can be defined as 'Riba Al Fadl' (Disparity in the number of goods) and 'Riba Al-Nasiah' (Disparity in the timing of the transactions).

Not only do we see how Islamic financial institutions have corrupted traditional Islamic finance and trading contracts, but also how paper money, a promissory note, is not acceptable in transactions as it represents the promise of paying a certain value, but is not value within itself. This results is the practice of Riba Al-Nasiah, a disparity in the timing of the goods given and the goods received.

With the Dinar (Gold Coins0 & Dirham (Silver Coins) a ray of hope emerges; the solution to the current global economic crisis is brought to light. "Islam stands unique in understanding the nature of this problem (the economic crisis) and in understanding the solutions to this problem." There was never nor is there any need to re-invent the wheel.

To be continued in’Shaa’Allah

Ihyaa-us-Sunnah | Revival of Sunnah