Interest free economy

Asalaam o Alaikum fellow Muslims,

I have been thinking about Interest free economy and it's impact on inflation, for quiet sometime now. IMHO an interest based economy is the root cause of inflation throughout the world.

I found a nice article (not related in any way to Islam) and thought to share it with you.

http://openmindrequired.com/blog/2008/06/the-real-reason-for-inflation-and-deflation/

One problem in Interest free economy, for which I cannot find any solution, is the case of loans. For start-up business, nobody is going to lend you money at zero interest. I think an Islamic bank can provide a loan to a start-up business by buying machinery/land/building etc. and getting fixed monthly installments. What do you think?

Can anyone enlighten me?

Yes you can have fixed assets from islamic bank not possible to get working capital as it is un-islamic.

dude forget about it don't waste your time,

1.... International economic system (including all muslim countries) is based on capitalistic system and the core of this system is interest. so nothing is gonna change.

2.... and as for you interest free economy dream, my brother your dream can't be a reality in any muslim country so what are you talking about whole world, muslim countries are too weak and backward so even any country would talk about interest free system then nobody would listen anyway.

3.... islamic banking you see all around is nothing more than eye candy or glazing on top.

above is not my personal opinion its the fact ask any pakistani economist.

@kudos

I just want share information that Islamic Banking is ultimate banking in world. In Australia, a non-muslim bank started Islamic Banking and world wide it desirable to do Islamic Banking that this conventional banking. Just see how many Islmaic Banks opened in Pakistan even foreign banks in Pakistan started Islamic Banking. So, furtur is of Islamic Banking.

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dude forget about it don’t waste your time,

1… International economic system (including all muslim countries) is based on capitalistic system and the core of this system is interest. so nothing is gonna change.

2… and as for you interest free economy dream, my brother your dream can’t be a reality in any muslim country so what are you talking about whole world, muslim countries are too weak and backward so even any country would talk about interest free system then nobody would listen anyway.

[/quote]

Actually I wanted to discuss the feasibility of an Interest free economy in pure academic terms. I want to know if inflation is really because of an interest based economy.

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3… islamic banking you see all around is nothing more than eye candy or glazing on top.
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I disagree. I have personally studied (a bit) about Islamic banking. I have also discussed Islamic banking with several of my friends who are doing MBA and believe me Islamic banking is real and there to stay. You may want to read the book written by Mufti Taqi Usmani available at http://www.darululoomkhi.edu.pk/fiqh/islamicfinance/islamicfinance.html

Ciao

@shakil

Good link you posted here. Thanks

^ i wrote what i wrote and you own search will tell you the same, for interest free econmy watch STAR TREK they have abandoned monitory system long time a go and they don't have concept of money.

We live in real world not in film, so, talk about real world not STAR TREK. If STAR TREK real than they also totally depended on money/economy other wise how it is possible to build such space ship with lot high tech machine and lot of food for several peoples for so many years.

Must face reality.

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Must face reality.
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yar use google, you said it yourself face reality and reality is what i wrote, right at this moment muslim world is too weak and backword in comparison to if we look at the west to europe/america and if we look at east to oriental/chinese/japan etc. they are way incredibly ahead, how you can tell them to do something

@kudos

You read they are economically very strong but this is nothing but phenomena. In fact they are over burden with interest base economically even all most all citizens under interest burdon and credit cards and they are about to shift to Islamic Banking soon. And time will tell Islamic Banking will be ultimate banking. Evey one there on interest based loans for everything even thier monthly grocery.

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@kudos

You read they are economically very strong but this is nothing but phenomena. In fact they are over burden with interest base economically even all most all citizens under interest burdon and credit cards and they are about to shift to Islamic Banking soon. And time will tell Islamic Banking will be ultimate banking. Evey one there on interest based loans for everything even thier monthly grocery.

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bhai jan perfect islamic model already exist in usa for 200+ years in the shape of wall street where you put your money and assume risk also. but main panga is when you come to banking side here it conflicts with islam, i hope it changes but at least i don’t see it happening in my life time though.

Islamic economic system has all solutions for economy.

interest free economy is future.

interest based economies are going down day by day see US.

I m not an economist so cant go in deep.

@kudos

There is no panga when real Islamic Banking implement any part of world. The main Panga is how regularity authority regulate. If they regulate in true islamic senses than no PANGA.

TA seth so as LINUX OS is far superior than WINDOWS, how many are using it? sometimes its not about quality its about quantity and interest based system is all over can't be changed over night

@kudos

You read what shakil link post here and you will get better idea, infact i need to read it to get more informatin about Islamic Banking.

http://www.darululoomkhi.edu.pk/fiqh/islamicfinance/islamicfinance.html

[quote=", post:, topic:"]

TA seth so as LINUX OS is far superior than WINDOWS, how many are using it? sometimes its not about quality its about quantity and interest based system is all over can’t be changed over night
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At least it started to change and hopefully very near future it will start implement with more strongly and will be accepted in many countries.

yes Linux is best, i want to use but i cant use internet on tht coz my ISP dosnt supports ubuntu.

SAME islamic banking is best but my govt. dosnt support tht.

i think its best example for u.

@mfa6464

@TA

islamic system is fair and superior no doubt about it but both brothers please undestand all along i am talking across the board acceptance, right at this moment interest based system key panjey are very strong. this what the debate is.

@kudos

Oh yes you are right right now it is too strong than cant easily removed from our not only economy but our life. I hope that interest will remove soon so our economy go Islamic way.

Condition of our economy is not such that we can do experiments with it. I believe the correct/prudent way is to excel at the current capitalistic model and then introduce whatever changes we like.

It is just like the situation where the Islamic laws were enforced in Medina, not in Markka, when the model Islamic state had been established.