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Author Topic: How to counteract Todays World Financial System  (Read 909 times)
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love4islam
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« on: Aug 10, 2009 11:41 PM »


Salaam Everyone,

         I wish everyone Ramadhan Mubarak in advance. This particular topic is about the World Financial System.
Not being from a Financial Background, I would like to know the merits, and demerits of the Current adopted Financial System in the world today.

         Instinctively, I feel that it is skewed, manipulated, controlled, with a nefarious touch to it, although it may not be perceivable as such to the majority of the people who look at it from the outside, and are less educated about Finance. I guess I belong to the same group of people who knows less about this subject. But, Like I said, just by instinct there is a devilish purpose out there.

        Also, I have noticed that alot of muslims, are buying properties, and valuable goods on credit, loans, mortgaging etc.  Again, I feel that, by doing so, we are making the devils behind this scheme richer, and letting them get more and more powerful.

        Coming to what I don't understand.

       1. Can anyone here, educated enough, or wise enough, explain to me, How the Current World Financial System,
           works, and What is its real intention, and the people at the core of it. I would like to know, If my instincts are
           wrong, or if I am prejudiced. I hope to think I am right.

       2. Secondly,  World population, stands @ around 6.6 Billion.
           I want to know from an expert in Finance, how much money is really out there, and is it justifiably enough,
           and accessible to all out there. If not, I'd like to know, if the poverty in todays' world is due to hoarding of
           money, or is it the plan of Allah himself.

       3. If we have to better the world, is it enough for us to just pray to Allah, and complete 5 pillars of Islam  
           and expect Allah to feed the poor and work his magic or are we appointed by Allah to improve the lives of
           people. I think there is big confusion, here in the last statement among the masses.

       4. I would like to know, if Zakat payed as per the share defined by Allah, can really put people out of stressful
           living. If muslim population stands at 1.6 billion, would the zakat, of well to do muslims help those who
           are struggling to find their mark.

       5. Then, coming to Islamic way of financing. Can anyone explain, how Islamic Finance, is better than the
           Western Financial System. I would like someone to explain to me about the economics and statistics of both,
           so that, tomorrow I will be able to guide the youth with the same.

       6. If all, muslims stop mortgaging, buying products like cars on EMI's, and credits, will it benefit them, and shunt
           the growth of the western financial system or not. I believe, people get richer by saving, than buying on credit
           and loans.

       7. I would like to know what is the Loaning system in Islam.

       8. I have seen alot of muslim brothers, struggling to find jobs, and are on a low income level, with many
           responsibilities to take up. I want to know, how we all can help alleviate this problem, and help all
           the muslim youth, and guide them. I guess the strong ones amongst us should be responsible to help
           the weaker ones. We need to build up a network, by which every muslim brother and sister ends up doing well
           in this world today and the hereafter.

      9. Also, I believe that there is a strategy in todays world to frustrate muslims although, it isn't apparent. I want
          to know how we can become self sufficient.  

      10. I hope I am not appearing moronic asking these questions to brothers and sisters out there.

      11. I wish, that every muslim mother, doesn't have to see their children struggling in life. Ameen....


Fee Aamanillah,
Owais...

          

'Behold, thy Lord said to the angels: "I will create a vicegerent on earth." They said: "Wilt Thou place therein one who will make mischief therein and shed blood? Whilst we do celebrate Thy praise and glorify Thy holy (name)?" He said: "I know what ye know not." 'Surah Al-Baqarah (2:30)
Abdurahman
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Oh Allah, Guide us to the Straight Path.


« Reply #1 on: Aug 12, 2009 12:17 AM »

Asalamualaikum wrt wb,


All praise be to Allah.


Dear brother,


You have asked many questions, and I will leave the answering for others, however let me just comment on a couple of your points:


Yes, it is the duty of every Muslim to eliminate poverty, and this can only be done by educating Muslims about Zakat, and its importance, and how it is the right of the poor on the wealthy.  I have heard from the scholars that if Muslims were to all pay their Zakat, there would be no poverty in the world, like the time of Umar bin Abdul Aziz.

As for the Islamic financial system, it is based on Zakat and Sadaqa, which is the reverse of Ribaa.  Ribaa is a means of taking wealth from the poor and giving it to the rich.  In a Ribaa system, the net mass of wealth migrates upwards, from the poor to the rich.

In the Islamic system, the opposite occurs, due to Zakat the net mass of wealth migrates downwards towards the poor.



Allah says, "Allah will obliterate Ribaa, and multiply Sadaqaat."


Yes, the wise people in the West have already begun turning to Islam as a financial alternative, as they have seen the downfall of their own economic system, and the prosperity of following Islam.


The loaning system in Islam is based on: 1.)  Giving loans as a good deed, hoping for reward from Allah.
2.)  Financial partnerships and profit sharing

3.)  Murabaha, which allows you to buy items on a sliding payment sale, ie. installments, as long as there is no interest involved.


As for becoming self sufficient, this is a very good point that you raise.  We should always buy Muslim first, seeking the reward from Allah, and seeking to help out our brothers and sisters.


And Allah knows best.

Be merciful to those on earth, and the One in the Heavens will be merciful to you.
BrKhalid
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« Reply #2 on: Aug 12, 2009 08:00 AM »

Asalaamu Alaikum  bro

There a lot of issues here but there is just one point I would like to make.


The global financial system that we see today has arisen over many years so it is folly to assume it will suddenly change overnight but one does see a growing move towards ethical concepts in finance and consideration of the Islamic perspective on financing.


What we can do as individuals is make an effort (in whatever small way we can) to try and encourage this process to take place.


So for example, if an Islamic bank now operates where you are, take any money you may have with a conventional bank and deposit it there regardless of whether you make any money or not. Simply not allowing your funds to be used in a non Islamic manner is good enough reason. If one can help more, then even better.


A common theme in the Middle East is that Islamic Finance, as yet, does not have enough critical mass to be able to compete with its conventional counterpart. InshaAllah, with time, this will change.

Say: "O ye my servants who believe! Fear your Lord, good is (the reward) for those who do good in this world. Spacious is God's earth! those who patiently persevere will truly receive a reward without measure!" [39:10]
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