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Breaking the Chains
of Economic
Enslavement
Zubair Arif
BREAKING THE CHAINS OF ECONOMIC
ENSLAVEMENT
Zubair Arif
Free Knowledge for All
Reviewed by
Muhammad Mubashir Nazir
(A Jeddah Based Scholar)
Academic and Professional Background
Course/Programme Year Certified in Risk Management Assurance from Institute of Internal Auditors, USA 2012
Certification in Advances Islamic Jurisprudence
2011
Certified Internal Auditor (CIA)
2007
Certified Information System Auditor (CISA)
2004
Fellow Member of the Association of Chartered Certified Accountants (ACCA)
2002
MBA 1996
B. Com 1994
Title Page No.
Introduction
Chapter 1: The Rise of Deceitful Economy
1. Road to Gold and Silver
2. Rise of paper money and interest based economy—America in focus
3. Spread of interest and paper based economy in world--Hitler in focus
4. Deceitful interest system unveiled
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5
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Chapter 2: The Foretold Present
1. The foretelling of present economic conditions
2. Following the system of Jews and Christians
3. Spread of secular education and ignorance of Religious knowledge
4. Satellite channels will prevail
5. People will not care weather their wealth is earned ~ From permissible or
impermissible source
6. Widespread killings
7. Ruler-ship of foolish people who adhere to evil Systems
8. Globalization
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Chapter 3: Islamic Economics: An Alternative
1. Introduction
2. Objectives of Islamic Economic Law
3. Basis of Islamic Economic Law
4. Real Money
5. Principles of Islamic Economic Law
6. Types of ownership under Islam Economic Teachings
7. System of wealth distribution under Islamic Economics
8. Condemnation of hoarding of wealth
9. Islamic Banking
10. Conclusion
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Chapter 4: Steps Forward
Further Readings
Click on the titles for easy scrolling
Introduction
Beyond the serene waves of seas, alluring songs of birds and dazzling
display of nature lies the painful reality of humans. Hunger, thirst,
insecurity, troubles and all kinds of problems have become a part and
parcel of many lives. There are thousands and thousands of people who
die each day because of hunger and millions and billions who live in
poverty. The financial crises which seem only to worsen are evident
and manifest before all. This surely brings us into a picture of reality
that we indeed are adhering to some problematic system of economy.
The condition of economy is such that there are some people who have
oceans of wealth whereas on the other side there are tons and tons of
those with not even a penny to spend. This situation indeed proves the
coherent limitations of our economic model. And thus, just like how
socialism came to an end, capitalism which also has proven to be failed
surely needs to come to an end with the rise of best alternative we
have. The alternative which is provided to us by Almighty Lord Himself,
the system engulfed with divine wisdom which surely can prove the
best of all systems. The Islamic Economic teachings which has worked
great wonders in the past is indeed the need for the present to end all
the pains people are suffering with, and to bring joy to humanity and
for indeed economy is one of the most important aspects of life.
Islamic teachings not only deals with ethics and values but its teachings
revolve around all the necessary dealings of our day to day life. Among
them there is an economic system which Allah the Almighty has set up
for humans so that they may prosper in their economic requirements
which forms the essential part of any individual. It‟s quite rational for
anyone to think that a code of economic system built upon by the do‟s
and don‟ts of the Creator, engulfed with divine knowledge and
understanding must be an economic system which if acted and followed
upon will bear fruits of utmost prosperity for all. This book is an
attempt to prove to readers that the current economic system we
adhered to is nothing but shakes and fusions of enslavement, and is a
null and void system to be followed and adhered to. Then the
alternative of Islamic Economic law is discussed, on how it has proven
itself to be a better alternative in past, and how it rationally can be a
better way to be adhered to. Everything discussed is very simple to
comprehend and understand. We only need a torch of light which we
are deprived of in today‟s biased world. This book does not give in
depth details on Islamic economic Law, but rather an overall idea on
major aspects on what Islamic model is like.
Breaking the Chains of Economic Enslavement
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CHAPTER 1
The Rise of Deceitful Economy
Road to Gold and Silver
In the midst of darkened nights, the world wails for the deaths of
thousands of those who die of hunger, who die of befallen debt-traps
on them, stuck in poverty, stuck in pain, whereas there are people who
are overwhelmed with excess of money, which they store bundles upon
bundles. Inflation, unstable economy and the outcome of which is
nothing but depression. The whole world is today stuck in the shackles
of unstable money and the whole world is crying out loud for stable
money, a better economy.
History bears witness again and again to the fact acknowledged globally
that Gold and silver were the foundations of stable civilizations in the
past and were used as currency from ages long. From Roman and
Persians civilization to all many other civilizations currency of such
intrinsic value formed the foundation of the then economic system
which resulted in prosperity and stability. The great personalities,
Breaking the Chains of Economic Enslavement
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Julius Caesar converted Rome‟s currency into Gold standards; Napoleon
introduced gold standards in France and history bears witness for the
reforms in their times and their greatness acknowledged. In Quran and
bible, the monetary system is referred to be based on gold and silver,
real wealth with intrinsic value. Currency which forms the medium of
exchange must have some intrinsic value unlike the artificial wealth of
this time, which erroneously now is converting to no more than digits
on electronic screens. Gold as currency with its intrinsic value was
accepted worldwide, no matter where one travelled in any part of the
world. If a person travelled from India to China, there was no need for
him to change currency and worst part is that we are today made to
pay for that conversion of currency. Gold is gold, weather used in India
or in China or in America; it has its own value. The advantage of Gold
as currency is that it will be of price stability with rare chances of
inflations and hyperinflation as a dream. Inflation is a factor which
proves harmful for the overall economy. Inefficiencies in market,
reduction of productivity, decrease in investment, increased instability
and effect on balance of trade are the outcomes of inflation which can
be vividly reduced in gold and silver based currency. And the worst
scene can occur in the case of hyperinflation which can result in the
abandonment of the effected country‟s currency. Gold if sunk under
water and taken out five hundred years later will be of same value and
will yet form the part of transactions, whereas if it happens to paper it
will be of no use. Throughout history, when paper used as currency, it
has never remained on its first value, the example of which is dollar
whose purchasing power has reduced since 1950 a high time, and
reported to be 90% fall in its purchasing power. In history, no paper
currency remained intact for a longer period; they soon come to an
end.
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The present time is witnessing an amazing situation where the labour
and hard work of people is compensated by mere pieces of papers
which keep on printing and printing all the time. The papers of no
value and made more worthless by spoiling them with ink, holding
pictures, signs and rendered not even usable for writing purpose. These
are the aspects which are not taught in our secular education system
and not usually spoken about in the media. There is a clandestine
conspiracy, conspiracy of silence led by the elites and authority holders
to let not people aware of the problems of their systems and the
alternatives to them otherwise there would have been no biasness i n
their set curriculum and controlled media to not show the other side
and the brighter side which can bring the world out of the shackles of
poverty and problems of economic disparities of rich getting richer and
poor getting poorer.
World has never witnessed such disasters in history due to any
economic code which the present time is witnessing. And the monetary
system is an important part of any economic system as said money is
important because it is one half of every single transaction. So, there is
a need to return to the road of Gold and Silver which worked as
currencies for thousands of years in human history. And as Voltaire said
“Paper money eventually returns to its intrinsic value- ZERO”.
Breaking the Chains of Economic Enslavement
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Rise of Paper money and interest based economy-America in focus
America, like many other countries in the world used to deal in Gold
and Silver as their currency. Trade, business, families and life were
moving along. Americans in midst of all this witnessed a new kind of
institutions which they were not usually familiar with. These
institutions called themselves as „banks‟, and called people to deposit
their gold in their safe deposits in return of equivalent amount of
receipt, for example for 50 gold coins, a receipt of 50 gold coins and so
forth. They called People towards using these receipts in their
transactions so that they would not need to carry gold along with them.
They assured people to safeguard their gold for a little charge. People
could withdraw the gold any time they wanted as they hold the
receipts or banknotes as they called them. Everything was going stable
and people had started dealing in these receipts until suddenly, the
banks ludicrously started to issue more receipts, receipts which had no
gold behind them and thus can be rightly termed as „fake receipts‟. It
was when the bankers saw that people got too much involved in using
these receipts (banknotes) in their transaction and rarely anyone
approaches them for gold, so they started to spread in market receipts
more than the gold they had with them. Historical Books do mention
the act of issuing more receipts at that time by the banks but
erroneously does not mention the evil outcome it had, and thus we
need to ponder over it by our own reflection and understanding. When
receipts which had no gold behind them were spread in market and
people were accepting and using them in transactions thinking that
these receipts have Gold behind them which they can withdraw
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anytime, it was a great fraud which they were going through, as the
bank had no gold in equivalence of the far more receipts which were
being used in transactions. They were made to deal in „fake receipts‟
which soon led to the occurrence of collapsing of various banks, or
termed as „run of the banks‟. It happened as and when at a particular
point of time a quite large number of people would gather to withdraw
their gold and the banks had shortage of them and it would lead to the
collapsing of bank with peoples condition left in ruin as they had to
return empty handed, with the harsh truth of the theft of their wealth
as can be rightly termed.
And this is how these types of banks brought in the concept of paper
money and it is from banks only the idea of using these papers in
transactions spread among people, which at first were receipts against
the gold deposited in banks. As some banks started to collapse, it led
to the losing faith of people in banks to secure their wealth, and the
bankers envisaged a new plan to secure the trust and faith of people,
and to continue collecting the gold of people in their deposits in return
of the banknotes. They devised a new way in which some banks came
together and jointly formed a combined bank, which would carry on
the task of providing funds to the local banks to prevent them from
collapsing. It would provide them with dual benefit, one of preventing
the banks from collapsing and secondly and more importantly it would
secure the faith of the people in banks, provide them with notion of
security of their wealth in banks. With this enchantment came into
being, „The Federal Reserve‟ on December 23, 1913, and astoundingly
in no time a bill was made to be passed by congress which gave federal
reserve the sole right to control and issue the American Currency. It is
Breaking the Chains of Economic Enslavement
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such a vicious system that the American government has no right and
cannot issue its own currency and if it wants any it has to take loan
from a privately owned bank, the Federal Reserve, and pay interest for
thus. For every single dollar that America needs, it is depended on a
private bank owned by few people. Today, the condition of American
government is that it has become bankrupt, stuck in shackles and
fusions of huge sums of loan which they pay year after year and more
astonishingly they end up paying only the interest, leave alone the
principle amount.
It is not that no American understood this system to be vicious and the
game of fake receipts and the deceptive objectives these banks were
trying to achieve. When the first central bank of United States was
formed in 1791, it was strongly opposed by the third president of
America, Thomas Jefferson and he made to its destruction by 1811.
Thomas Jefferson said these words in opposition to banks:
“If the American people ever allow private banks to control the
issuance of their currency, first by inflation and then by deflation,
the banks and corporations that will grow up around them will
deprive the people of all their property until their children will
wake up homeless on the continents their fathers conquered”.
“I place economy among the first and most important virtues and
public debt as the greatest of dangers to be feared. To preserve our
independence, we must not let our rulers load us with public
debt…”
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In 1816, a second bank of America was formed and remained on charter
for 20 years; President Andrew Jackson was opposed to it and did
various doings against them. In 1834, there was an attempt made to kill
Andrew Jackson which left the President wounded but yet he remained
dedicated to the opposition entire his life. President Abraham Lincoln
after thirty years also started strongly opposing the banking power but
was assassinated. Abraham Lincoln said:
“The money powers prey upon the nation in times of peace and
conspire against it in times of adversity. The banking powers are
more despotic than a monarchy, more insolent then autocracy,
more selfish then bureaucracy. They denounce as public enemy‟s all
who question their methods or throw light upon their crimes. I have
two great enemies, the Southern army in front of me and the
bankers in the rear. Of the two, the one at my rear is my greatest
foe...”
James Garfield after he became president was also standing against
the banks and entered the list of those assassinated Presidents. Same
was the case with President John F. Kennedy who opposed and was
assassinated in 1963. Ronald Reagan opposed and an attempt of
assassination was made in which he survived. Since then no president
has ever opposed the private central bank and Federal Reserve is yet
into play.
Breaking the Chains of Economic Enslavement
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It was till how the banks brought in the concept of paper money being
used in transactions and subsequently how after formation of a central
bank they took over the sole right of issuing those paper notes which
were being now widely used in transactions. The next step they did in
1933 when they just stole away the people of gold by making a law to
be passed, the law which required all Americans to stop dealing in gold
and to give all their gold coins, gold bullions to Federal Reserve. Any
violator was would be fined $10,000 or an imprisonment for 10 years or
both. Americans were provided paper money in return of gold on $20
per ounce. As some time passed the use of Gold was again legalized but
the price at which the Federal Reserve sold it now was at $35 per
ounce. In other words, the 20 dollar for which people sold the gold, the
same 20 dollar is now providing them with less Gold and hence almost
half of their Gold was stolen on spot by just decreasing the value of
paper notes by Federal Reserve. As the spread of paper money had
become wide, most of the people used to deal in paper money and
steadily they again made the people of America deposit their gold with
them and legalized the use of paper money alone.
America today though seemingly looks glittering for the people of the
world but in reality is entrapped in huge sums of debt with no vision of
end to it in future. Though they speak of freedom, but every single
American is enslaved and born in slavery, slavery to pay to IRS sums of
their earned money which the American government uses to pay the
loan of Federal Reserve. People work their blood out to earn for their
butter and bread and yet a part of it is taken by government to pay the
loan they owe to Federal Reserve. This is a big injustice and
enslavement of people, a form of slavery people stuck into. The void
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paper currency with loads of its flaws are no solution for a better
economy, the banking systems based on interest are yet another void
idea to think about, the dazzling outward look of America deceives the
people but insight look proves their bankruptcy and enslavement to
Federal reserve which must prove a food of thought for the world to
not take their system as their guiding light, to put an end to interest
and paper based economy, and take all measures and ways they can to
achieve a better economy which in no way can be based upon the
model of American system.
Spread of Interest and paper based economy in world - Hitler in Focus
Not Long ago, in the near reaches of history, a man who secured to be
an important figure of every historical book was born. His role beyond
any shadow of doubt is of manifest importance, a hitman for our
history books. Chanting and muttering, every school boy learns the
topic of Adolf Hitler memorizing Austria-Hungary to be the place of his
birth and 1889 to be the year of his birth. But what astonishes a school
boy is about the killings of millions of Jews, and the World War II
events of which Hitler forms an important figure. And this is what the
masses know from the falsified books and controlled media.
As we swing along our regular historical books, we find no mentioning
of the fact that there exists not a single document which proves the
Breaking the Chains of Economic Enslavement
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order of extermination of Jews given by Hitler or perhaps never existed
as put by Leon Poliakov, a famous and great French historian
accompanied by similar statements from many other historians.
Further, our lessons mention that six million Jews were gassed in gas
chambers and put to death in Germany in a span of six years, which
would take a span of more than 60 years and the irony which enthrals
the sane mind is of not a single body being proven of death due to gas
poisoning although deaths did take place but out of starvation due to
economic crises and not out of deliberate killing. Fred Leuchter, an
expert in execution technology researched extensively on the gas
chamber which ended up in no traces of gassings being there which
means no killings ever taken place in those chambers out of gas
poisoning. In 1991 Polish again researched the same and ended up with
same results of no evidences of any such gassings in those gas
chambers.
Yet after indelible marks put by these researches and thought
provoking reasons and questions, the holocaust yet form an important
ingredient of our history lessons. Hitler rose up as a figure who hated
Jews but at the same time we find in history that companies which
were directly or indirectly owned or controlled by Jew elites were
financing him for the war efforts. Some overwhelming questions arise
out of this fuss, first concerning the killings, were six million Jews
really killed provided the strong proofs which negate its happening?
And why were Jews financing and helping a Jew hater, a Jew killer? If
Hitler really was such a big anti Semitic, anti Jew, Why were the Jews
financing him? Just to make Hitler oppress their fellow Jewish people?
To seek answers to these questions we need to seep a little into the
history to know what actually was happening.
Breaking the Chains of Economic Enslavement
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In the wake of anti Semitism in Europe, Zionists heads had an eye at
the land of Palestine for building a Jewish state, a land filled with
sacred places for Jews, held sacred by Muslims and Christians as well.
It all started with education, education which made the common
masses of Jews believe the land of Palestine to be an empty land. As
they arose believing it, its sane outcome was the immigration of Jews
to the land of Palestine, fleeing away from the land of Europe which
was filled with Anti-Jewish people. The immigrations had some boom
at the time when British passed the Belfour Declaration which was
a letter written to Baron Rothschild which promised a Jewish state in
the land of Palestine in support of the views of the Zionist movement.
Europeans deciding a future of an Arab land, a non European power,
such a ludicrous happening which took place. Yet the population of
Jews in Palestine remained low until suddenly, it increased to
paramount, it was the time of rise of Adolf Hitler. From 1932 to 1936,
in a matter of five years, 174,000 Jews immigrated to Palestine. And
until the end of 1945, Jewish population had vividly increased a high
time in Palestine. As the story of killings of Jews spread far and wide,
the sympathies of the people of world started to favour them and the
talks and the workings for making a state for Jews in Palestine
increased. Soon United Nations came up with a blunder which divided
the land of Palestine into two parts of which only 43% of the land was
given to Arabs whereas Jews were given 56% percent of the land
although the population of Arab inhabitants was more than 60%. It was
after that the Zionists with their military powers started to occupy the
other major cities of Palestine and the ruthless killings of Palestinians,
the people who once let them stay in their country when they were
fleeing away from anti-Jewish European people, and thus the Zionists
succeeded in their objective and goal of building a Jewish state in
Palestine of which the story of holocaust done by Hitler, and Hitler‟s
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rise in power played a very important part. It was Hitler‟s rise in power
which made loads and loads of Jew immigration to Palestine, and it
was the story of Hitler‟s holocaust which made the efforts of making of
a Jewish state rise high, and which made them gain the sympathies of
the people of the world and thus UN ended up in such an erroneous
partition.
Yet another objective which was achieved using Hitler as one of the
element was of changing the gold currency into paper money
throughout the world and spreading of interest based economic system
in whole world which had already had achieved in America.
There is no denying the fact that Adolf Hitler proved to be one of the
important element for the occurrence of the World War II. And seeping
into the History of war provides with the fact that financing of both the
opponents in war was from the same source, the same Jewish bankers,
thus the same source regulating the war and winning a high time
benefit from all around. Europe was burning, mass destruction's,
killings and thus the blood of people was flowing all around and yet in
midst of all this in two Countries, there were no sign of it. Switzerland
in which the banks were collecting the gold of people from all sides,
which people out of fear of war were depositing there and America
whose banks were financing the war effort. American central bank
Federal Reserve, after financing the European war effort, received all
of its payment in gold and not in paper currency. As a result of war, as
known to all, all of the Europe was destroyed which now needed money
for construction and rebuilding itself which they would be provided by
Breaking the Chains of Economic Enslavement
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none other than the Federal Reserve through American government, a
bank which already had enslaved America and now would enslave
whole of destroyed countries in war under their debt fusions by
providing them loans on interest. A quite obvious outcome, most of the
gold of affected countries after World War 2 had reached Federal
Reserve and many countries had fell prey under the trap of loans of
Federal Reserve, the financers of the war, a private bank owned by
some materialistic people.
In midst of all the fuss and troubles, all the economics were destroyed,
there came into picture the Breton Woods Agreement, which claimed
to provide solution to the world economy and the world stuck in
economic problems due to wars and occupations agreed to the
solutions it provided. The Breton Woods Agreement brought in front the
making of United Nation (UN), World Bank and International Monetary
fund (IMF). The feature of which was the prohibition of use of gold as
currency throughout the world and tying of all the currencies to US
dollar and US dollar being tied to Gold. Thus, the use of Gold as
currency was terminated throughout the world, and no direct backing
of any currency towards gold except dollar. And their total
achievement came into picture when in 1971 convertibility of Dollar
into gold was terminated. They used these institutions like IMF, World
Bank to spread the system of interest based economy to the world,
spread of paper money throughout the world and the end of Gold
currency letting all the gold coins, gold bullions stay with Federal
Reserve owners.
Breaking the Chains of Economic Enslavement
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Thus, Hitler also played the part of helping the evilness of ending the
gold based currency and starting of paper currency and to spread the
interest based economy throughout the world. The death of Hitler as
well, said to have committed suicide but in realty remains a mystery
unsolved.
Deceitful Interest system unveiled
Interest involves increase, an increase in original amount. According to
Oxford dictionary interest means, „money paid for the use of money
lent‟. In the common practices around us, it is the additional money
which is received on deposits in banks, additional money paid for the
loans taken from banks or additional money paid by countries to the
World Bank or IMF or likes of Federal Reserve for the loans taken from
them.
As manifest before the world scenario, interest based economic system
has proven the evilest and vicious forms of systems ever made. It has
resulted in the enslavement of most of the countries in the world.
Starting from giving loans to individuals on interest, these banks
reached into creating the shackles of giving loans to countries on
interest. The so called helpers of countries for development has in
reality engulfed the countries into their traps of interest. As and when
any country fails to repay their loans out of natural disasters or other
Breaking the Chains of Economic Enslavement
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reasons, these so called helpers invade the countries and steal away
the natural resources and real wealth belonging to the country. As
individual if fails to repay his loans if he lost his job in between the
process or faces some calamities, the banks without any social
consideration keeps on increasing the interest amount to paramount,
and at last leaves the person even more worse off, by taking away their
real wealth. According to UNICEF about 500000 children under the age
of five die each year as a result of debt crises, and God alone knows
how much deaths including adults and adolescents would have been
taking place out of this evil trap of debt. Similarly if the country fails
to repay, they are invaded by taking away the real wealth of natural
resources belonging to them. The evil system of interest based
economy today has left the world countries enslaved under their debts;
the situation of countries is such that the external debt of India had
increased to $295.8 billion on September end 2010. USA the so called
world‟s richest country has gross external debt of $14.393 trillion.
United Kingdom is overburdened with external debt of $9.088 trillion.
Germany has $5.028 trillion external debt; France trapped in $ 5.021
trillion external debt, China enslaved in $347.10 billion external debt
and similar figures from many other developed and underdeveloped
countries. This is what an interest can do, enslave countries and kill
humans.
Interest based financing also leads into slough of low production and
unemployment. For example, if a businessman took loan on 10%
interest from the bank for business and buys an article for selling which
costs 1000 Rs. When selling the article in market he obviously will add
to cost price of the article his profit, say 10% and also interest 10%
Breaking the Chains of Economic Enslavement
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which he will have to pay to the bank. Thus he will end up selling the
article for RS 1200 which would include 100RS of profit and 100Rs of
interest. And thus interest ended up in increasing the price of the
article, and now since price goes up, demand for that article will
obviously come down, less people will be willing to buy that good
because of the high price, as demand will decrease, supply of the
article will automatically decrease as less people are buying it, as
supply decreases clearly the production goes down, as production
decreases, there arises labour problem, less labour is needed and
hence unemployment.
Another major problem with interest based system is of increasing the
economic disparities of rich getting richer and poor getting poorer. This
can be understood easily if we take in consideration the following
simplified example of an economy. If suppose there live only three
people in some economy, one being rich, second being in middle class
and third being poor. Rich person has a saving of RS 3000, the one
belonging to middle class having a savings amount of RS1500 and the
poor having no savings. If the upper two classes of people put their
savings amount in bank deposit on which they get an interest of 10%,
what would it lead to? After one year, the money of rich person would
increase to RS3300, the money of the person belonging to the middle
class will lead to RS1650, and the poor who had no savings would be in
the same position as before. As the second year passes by the amount
of money that rich had will be increasing to RS3630 after 10% interest,
the middle class person will have RS1815 and the poor would be with
the same condition of having no savings. Here in this example, it
becomes lucid how the gap between the savings of rich and middle
Breaking the Chains of Economic Enslavement
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class is unjust and increasing the gap of making the rich richer. In the
span of two years only the money of rich increased by RS630, whereas
it only increased by RS315 for the person belonging to middle class, and
clearly the poor remained far behind, with no increase in his money.
Due to this increase of money out of vicious interest system, economic
disparities has increased, the gap between rich and poor keeps on
increasing, and governments keep on wailing on this problem, but the
solution which lies in abandonment of interest based system is not even
thought about.
The Almighty creator of all that exits in the world and in whole of the
universe forbids mankind only from what is harmful for them, thus we
find the texts of religious scriptures clearly forbidding interest. In
Quran, the most authentic of all scriptures, which has remain intact to
its originality in all its forms and shapes and memorized in millions of
minds, the Almighty forbids interest lucidly and strongly. It is
mentioned in the Quran:
“O you, who believe, do not consume interest, doubled and
multiplied, but fear God, that you may be successful. (Quran 3: 130)
“Those who consume interest cannot stand [on the Day of
Resurrection] except as one stands who is being beaten by Satan
into insanity. That is because they say; Trade is [just] like interest.‟
But God has permitted trade and has forbidden interest. So whoever
has received an admonition from his Lord and desists may have what
Breaking the Chains of Economic Enslavement
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is past, and his affair rests with God. But whoever returns [to
dealing in interest or usury], Those are the companions of the Fire;
they will abide eternally therein. God destroys interest and gives
increase for charities. And God does not like every sinning
disbeliever.” (Quran 2:275-276)
“O you, who have believed, fear God and give up what remains [due
to you] of interest, if you should be believers. And if you do not,
then be informed of a war [against you] from God and His
Messenger. But if you repent, you may have your principal? [thus]
you do no wrong [to others], nor are you wronged.” (Quran 2:278-
279)
In Bible also interest and usury are forbidden; consider following
references from Old and New testaments:
[Leviticus 25:36] Take thou no usury (high interest amount) of him,
or increase: but fear thy God; that thy brother may live with thee.
[Leviticus 25:37] Thou shalt not give him thy money upon usury, nor
lend him thy victuals for increase.
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[Deuteronomy 23:19] Thou shalt not lend upon usury to thy brother;
usury of money, usury of victuals, usury of any thing that is lent
upon usury:
[Exodus, 22:25] If thou lend money to any of My people, even to the
poor with thee, thou shalt not be to him as a creditor; neither shall
ye lay upon him interest.
The world economy is in worst of conditions, millions of people die of
hunger and a few elite hold in their hands loads and loads of wealth. It
is an outcome of evil interest, whose evils are least spoken about and
people are whitewashed into believing the brightness of interest and its
abandonment as something impossible to think about. But the reality
lies in the fact that world will prosper more in abandoning the interest
out from the economy, and abandoning this deceitful system brought in
by institutions like World Bank and IMF after World War 2 for their
penny gains and enslavement of countries.
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CHAPTER 2
The Foretold Present
In midst of surrounded deserts, rampant ignorance, a time of illiteracy
and fusions of evil customs, a man was chosen to enlighten the light of
guidance. He was chosen to bring joy in midst of sorrow, to bring hope
in midst of despair, to bring security in rampant peril and to bring
happiness in surrounded anxiety. He was chosen by Almighty God as a
prophet of God and his name was Muhammad, a name which brings joy
in millions of hearts. He abolished the custom of burying female
children alive and raised their status by promising paradise to those
believers who look after their daughters with a good care; he gave
rights to slaves who were treated harshly, ended wars which were
based on futile reasons and abolished loads of other evil practices and
harmful customs which were prominent at that time and made them
forbidden to be followed in future to attain the pleasure of Almighty
God and a place in the paradise prepared by Almighty Allah. And at the
same time he as a sign of his prophecy and words of caution for
believers foretold many happenings which would happen in future
which exactly are taking place in what we are witnessing today, a man
1400 years ago foretold events which exactly are happening today
proves the truthfulness of his being a prophet and truthfulness of his
message.
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The foretelling of present economic conditions
It was reported from Abu hurayrah that Prophet Muhammad peace
be upon Him said: There will certainly come a time for mankind
when everyone will take Riba (interest), and if he does not do so, its
dust will reach him. (Abu Dawood and Ibn Majah)
Interest is strongly condemned in Islam, and Prophet Muhammad peace
be upon gave strong assertions against it. It is because Almighty God
knows best what is good for mankind and what all is harmful, and thus
made his Prophet condemn Interest in all its forms. He Prophet
Muhammad peace be upon him cursed the receiver and payer of
interest, the one of records it and the two witnesses to the
transactions. He said they are all alike in guilt. (Sahih Muslim)
What is foretold in the hadeeth mentioned before is exactly what has
happened today. The whole economic system today is Interest based
and thus even if anyone wants to adhere to teachings of Islam gets
indirectly involved in it even though he has no guilt because it is not
what he does deliberately. As for most of the people, they on their own
will deal in interest, giving and taking loans on interest is most rampant
today. The present economic system based on interest is exactly what
the Prophet Muhammad foretold, everyone will take interest and if he
does not want to do so, yet its dust will reach him.
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Following the system of Jews and Christians
Prophet Muhammad peace be upon him said: You will follow the
ways of those who came before you, hand-span by hand-span, cubit
by cubit; even if they were to enter the hole of a lizard you will
follow them. He was asked by his companions “Messenger of Allah
(do you mean) the Jews and the Christians? He said, “Who else?”
Even though we have the best of economic system which will be later
discussed and way of living, yet we follow the ways of Jews and
Christians in these affairs. We have best of economic alternative to
follow, system which will end sufferings and problems wherever it be
implemented, yet we follow the interest based system brought in by
Jews and Christians blindly, we imitate them in whatever evil they do,
one of the biggest of evils being the evil of economic and monetary
system they introduced. It does not mean we cannot benefit from their
good inventions or goodly things but our following them in each and
everything, imitating them in all our affairs is ludicrous and erroneous,
this is what is rampant and widespread among Muslims today, Muslims
have the best to provide to mankind, they have the best example to
become. Yet we are lost far beyond even recognising our fall, we don‟t
even recognise or know the glory which was brought in by Prophet
Muhammad and the early generations of Muslims after him, how they
revolutionized the world, brought in peace and prosperity among
people, and the best of economic model they adhered to. This
prophecy of Prophet Muhammad is exactly in picture on how Muslims
imitate the Jews and Christians in everything they do without even
giving thought on whether the thing they do carry some good or evil.
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24
Spread of secular education and ignorance of religious knowledge
Prophet Muhammad peace be upon him said: Allah hates the one....
who is knowledgeable in worldly affairs and ignorant of matters of
hereafter. (Ibn Hibaan in his saheeh)
Prophet Muhammad peace be upon him said: Ahead of the hour (the
day of judgement), there will be days in which knowledge is taken
away and ignorance will prevail. (Narrated by Ahmad)
The level of literacy in terms of secular education is on a rise, but the
knowledge in terms of religious education is declining which has led to
our ruins. The books which are taught in our secular schools are usually
no more than whitewashing of readers. The books pertaining to
economics are a pure whitewashing into believing that there is no other
system then the prevailing interest and paper based system. And our
ignorance of the knowledge of Quran and Islam is what has led us into
believing the same what is induced from those books. It does not mean
that we should not study them; rather it is the need of the time, our
unfortunate need to study those books which does contain knowledge
but mixed with evilness and biasness. And it is our erroneous, null and
void practice that we don‟t study our Islamic knowledge which is an
obligation for us. Prophet Muhammad peace be upon him said that it is
obligatory on every Muslim to seek religious knowledge. It is our
distance from our Islamic knowledge that we are in a state of fall, our
righteous early Muslims were equipped with Islamic knowledge which
Breaking the Chains of Economic Enslavement
25
had led them into reforms and developments in fields of economy,
science, maths and many other fields which unfortunately we are not
even aware of. How true was the Prophet in his prophecy that
ignorance will prevail in terms of religious knowledge and how true was
he in his saying that books which spread evil teachings will spread,
books other then book of Almighty Lord, books which contain spread of
interest based system and other evilness are widespread. He peace be
upon him said:
Among (the signs of) the approach of the hour is....that the bad
thing will become widespread among the people. He was asked
“what is the bad thing”? He replied whatever is written other then
the book of Allah. (Al-tabaraani)
Books which spread what contradicts the teachings of Almighty God are
rampant and prominent among us. And it is our referring only to them
which had led the world into ruins and troubles.
Satellite channels will prevail
Prophet Muhammad peace be upon him said: Soon evil will pour
upon you from the sky until it reaches the wilderness. (Ibn Abi
Shaybah recorded it in Al-musannaf with a saheeh isnaad)
There is no place where the evils of television in forms of satellite
channels does not fall, even in the tents in wilderness and in deserts
Breaking the Chains of Economic Enslavement
26
have in them satellite dish which starts the rain of evilness. There is no
denying the fact that these satellite channels contain more of harm, a
lot more of harm than good in it. It is also one of the most important
tools of evil people to make people into believing the interest based
system to be the only way of economic system which the world can
have. It promotes pornography, vulgarity, wrong information in forms
of news and what not. It rarely contains any channel which spreads
unbiased knowledge and information or free from any nudity and
absurdity.
People will not care weather their wealth is earned from halaal (permissible) or haram (impermissible) source
Prophet Muhammad peace be upon Him said: There will come a time
when a man will not care how he earns his wealth; weather it comes
from halaal or haram source. (sahih bukhare)
This is what we are vividly witnessing among Muslims. Muslims work in
banks despite knowing its impermissibility. They take and give loans on
interest even after knowing it to be strongly condemned. Other than
that their dealing in taking bribes and working in impermissible
businesses of Alcohol or Drugs are also prominent.
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27
Widespread Killings
Prophet Muhammad peace be upon him said: by the One in Whose
hand is my soul, this world will not come to an end until there
comes a day when the killer will not know why he killed and the one
who was killed will now know why he was killed. (Recorded by
Muslim)
The wording “the killer will not know why he killed and the one who
was killed will not why he was killed”, implies and demonstrates to
how much widespread and rampant killing will become. This is the
exact scenario the world has witnessed. The two world wars resulted in
70 million killings of people; 3 million were killed in Vietnam War, and
millions of more killings which resulted in many other wars. This is
what our beloved prophet Muhammad peace be upon him prophesised
1400 years ago.
Rulership of foolish people who adhere to evil systems
Prophet Muhammad peace be upon him said to ka‟b that, “I seek
refuge with Allah for you, ka‟b, from foolish leaders, “Ka‟b said,
“Who are the foolish leaders, Messenger of Allah? He said, “Leaders
who will come after me, who do not follow my guidance or adhere
to my sunnah (way)...” (Recorded by Ahmed)
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28
Today in Islamic states and many Muslim countries as well, rulers are
just same like the way prophet Muhammad described. They do not
adhere to the guidance of Prophet Muhammad nor follow his way. They
adhere to the systems like of interest and economic models of west and
leave the best. They do not implement the Islamic law in the countries
or work towards establishing Islamic economic system based on Islamic
teachings or Islamic law in states and countries.
Globalisation
Prophet Muhammad peace be upon him said: The Hour will not begin
until tribulations appear, there is a great deal of lying and markets
come close together. (Narrated by Ahmed)
“”Markets come close together”, is a phrase similar to what we read in
our secular books today that “the world is one market”. The invention
of new means of transportation and communication has made the world
market come closer to each other which we know today by the term
globalisation in present time. The modern means of transportation is
also what was referred in the Quran:
And Horses, mules, and donkeys both to ride and for adornment,
and he creates other things you do not know. (Quran 16:8)
The verse of the Quran was revealed 1400 years ago when only horses,
mules, camels and the likes were used as the modes of transportations,
but here the verse indicated that there will be more new means of
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29
transportations which were not known to the people at that time which
we are witnessing today.
Also Prophet Muhammad peace be upon Him said: “Towards the
end, there will be men from my ummah who will ride on something
like comfortable saddles...” “”
“Comfortable saddles”, was referred to new means of transportations
which Prophet mentioned would be used which will be comfortable.
The cars, Aeroplanes and the likes which are used as means of
transportations today are beyond any shadow of doubt comfortable and
have helped in getting the markets close together.
Thus the present world scenario which we are witnessing today is
already been foretold by our beloved Prophet Muhammad peace be
upon him, apart from what was mentioned there are many other things
which were foretold and they happened and are happening like the
great fire which appeared in Hijaz, the battle which took place
between Muslims and Turks, loss of honesty, spread of immorality,
people competing in building lofty buildings for showing off, spread of
indecency, women wearing immodest dresses, lot of earthquakes,
obesity becoming widespread, conquest of Jerusalem and many others.
And future events which are yet to happen like the destruction of the
Kabah, Jerusalem will flourish and medina will be in ruins, appearance
of Mahdi, appearance of Dajjal, Jesus and many others. The books on
this subject are numerous which can be referred to for further
information and knowledge.
Islamic teachings as we saw has foretold the economic system to
prevail in which we are stuck today, but the glory of Islam is far beyond
what is manifest. Islam has provided us with all kinds of systems to
Breaking the Chains of Economic Enslavement
30
adhere to from political, social, moral and economical systems, all of
which if implemented will prove to be of utmost prosperity as they
have proven in the past and they without doubt are perfect and the
best systems to adhere to because it is from the Lord of the Worlds
Himself.
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Chapter 3
Islamic Economics: An Alternative
Introduction
In wake of present manifest void economic system, its unprecedented
spread in a lucid manner, with its claims raising high has trapped the
world into chains of believing in its only availability and superiority.
But the reality is that this economic system has led the world into
nothing except ruins. Everyday 25000 people die out of hunger
according to United Nations and 1% of people hold 40% of Globes
wealth as per statistics. This is the reality of the existing null and void
economic system which has given the world nothing except starvations,
deaths, inequitable distribution of wealth, depressions, hyperinflations
and what not one can count. On one hand there are people who have
wealth in bundles which keep on increasing with interest amounts,
whereas on the other side there are thousands of people who die out of
hunger each day, who are homeless, who live in streets. This is the
reality of the so called just and liberalised model of economy. In
contrast to this void economy we have an economic system based upon
ethics, morals and reasonable methodologies of divine wisdom which
Almighty God has himself set up for humanity to prosper. An economic
system which is free from human whims, desires and limitations, an
economic system which was brought in by Prophet Muhammad and was
implemented and bore fruits of utmost prosperity. It is the system
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32
which the present time is in need of, it is the system which millions of
people dying are in need of, it is the system which millions living on
streets in utter difficulties are in need of, it is the system which is the
answer for economic problems which people wail of, it is the system
which is the only and best alternative, a best legislation for the
betterment of humanity as a whole.
The examples of the prosperity of Islamic economics system are
manifest in history. At the time of Umer when he was the leader
(Khalifah) of Muslims whose leadership was based on Islamic principles,
Muadh ibn jabal who was sent as a governor of Yemen sent 1/3rd of the
Zakaah money which was collected from the rich to be distributed
among poor to Umer. It was because the rest of the Zakaah was
distributed among poor and nobody was left who was in need of the
left Zakaah money in Yemen. So the money was sent to Umer to find
ways to make use of the left Zakaah. Umer responded to this act by
writing to Muadh ibn jabal that he should have distributed the money in
the same province and should not have sent it to him. Muadh wrote in
reply that he had searched everywhere; there was no one left who w as
in need of that left money. The second year Muadh ibn jabal
distributed Zakaah and was left with 2/3rd of it with only 1/3rd getting
distributed. He again sent the left money to Umer, and Umer again
responded in a same manner as before. Muadh ibn jabal again replied
that he distributed what he could and there was no one left who was in
need of the left money. The third year, the condition was such that
when Zakaah was collected, muadh found no one who was in need of
zakaah in Yemen. And he sent the money again to umer and wrote: By
Allah, I was not able to find anyone in Yemen who was in need of
Zakaah money. (Abu Ubayd in Kitab al Amwal)
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This was the economic condition under Islamic economic model, where
condition of every citizen was well off and prosperous. In a span of
three years in Yemen, there was no one left in need of zakaah, such
was the condition of economy, the equivalent of which in history
cannot be found in any other economic system let alone the present
capitalism full of flaws. Similar incidents can be traced at the time of
Umer bin Abdul azeez, when he was the leader of Muslims. People
would not find anyone in need of Zakaah, such was the prosperity
under Islamic economic teachings. He Umer bin Abdul Azeez at the
time of his leadership appointed Abdul Hamid bin Abdul rahmaan as a
governor for Iraq. He Abdul hamid sent a message to Umer bin Abdul
Azeez to help him guide out of a problem. The problem was such that
he had distributed the money to the poor and needy and yet he had
money left in the treasury. He sought the help of the leader to guide
him on what to do with the money. The leader replied to him by telling
him to find everywhere of the single citizen of Iraq who was under debt
and provide him with money. Abdul Hamid replied that he had already
done it, he had distributed the money among those also who were
under debt and yet he was left with money. Umer ibn Abdul Azeez then
told Abdul Hamid to search for Young boy or girl who wanted to get
married and establish a family, help them with the funds. And again
Abdul Hamid replied that he had done that, and so the leader went on
telling further things to all of which Abdul Hamid replied that he had
done so. (Narrated by Abu Ubayd with authentic chain of narration)
This was the economy under Islamic principles, the like of which the
world has never seen. This economic system is the need of the present
time to solve the problems which humanity today is suffering with.
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Objectives of Islamic Economic Law
Every system is set up for a certain reason or objective to be achieved
and Islamic system in its essence have the objective to eradicate
poverty, provide secure shelter and health security to each and every
individual of the society. Principles and rules set up by humans like
capitalism also are in place for certain objectives to be achieved,
objectives defined by humans with their limited intelligence and
knowledge, but the objective set up for Islamic economic law is from
the creator with His unlimited intelligence and all encompassing
knowledge. The objectives of the divine Islamic economic law are
derived from the following saying of Prophet Muhammad peace be upon
him.
It was reported in a sound narration that Prophet Muhammad peace
be upon him said: “When someone is secure in his property, healthy
in his body, and has his food for the day, it is as if he owned the
entire world. (Tirmidhi and Ibn Majah)
The objectives of Islamic systems are beautifully mentioned in the
above statement of the Prophet, that „if someone is secure in his
property‟ which implies to the house that one has which he owns and
lives in security in that, it is the necessity which all of us would affirm
to. The second objective of being „healthy in his body‟ which implies
also to have means and availability of sources of getting treated in
times of illness and finally „having food for the day‟. It is the crux of
everything we spend our life and efforts for, that we have a house to
live in, that we have food to eat and in case of illness we be able to go
to doctors and have access to health facilities. This is the prime
Breaking the Chains of Economic Enslavement
35
objective of Islamic model to provide every single individual with these
basic necessities of life and that not a single person sleeps in hunger let
alone the millions of deaths which in this time take place out of
starvation. It was reported in another narration that the Prophet
peace be upon him said: “Allah breaks covenant with any group of
people living in close vicinity, whereby one of them goes to bed while
hungry.” This is the primary aim of Islamic economics that no one
should be left behind being hungry. This is something that capitalism
failed to look after; this is a manifest failure of our current economic
system which has been already discussed. Every day 25000 people dying
out of hunger is a lucid failure, a failure which is evident since its
beginning. Six million children die of hunger every year; 1.4 billion
people in developing countries like India, Pakistan and others live on
only $1.25 a day or even less. In contrast to it as we earlier discussed
Islamic economics which maintain food security to be one of the most
important objectives has been successful in attaining it when it was in
place as a complete system. We earlier discussed how at the time of
Islamic leadership when it was based on complete Islamic system
achieved a state where no one was even in need of the money of
Zakaah. At the time of Umer bin Abdul Azeez, when every person was
provided with sufficient food, he would command that the seeds be
thrown in mountains and let to grow so that even the birds would eat
as he hated to see even birds hungry in the land of Islam. These are the
objectives of Islamic economic law which at the time of its
implementation were well achieved and in capitalism the failure of
these aspects are evident and manifest before all.
Breaking the Chains of Economic Enslavement
36
Basis of Islamic Economic Law
Brotherhood and spirituality: Islam lays a strong stress on brotherhood
to prevail in societies, where every individual as much he is concerned
for himself is concerned about his people leaving around him as well.
Collective benefit takes precedence over individual benefit; there is a
sense of belonging and closeness to each other in terms of faith, in
terms of being brothers and sisters in humanity, in a sense of
unification of belonging to One God and loving each other for the sake
of Almighty Lord.
Prophet Muhammad peace be upon him said the following:
None of you will have faith till he wishes for his brother what he
likes for himself. (Sahih Bukhare)
Those who sit nearer to me are the ones among you with best
manners, the humble who befriend and are befriended. (Narrated
by Tabarani)
The believer is friendly and easy to befriend. And there is no good
in the person who does not befriend and are befriended. (Musnad
Ahmad)
Allah the Almighty will say on the day of judgement, „where are
those who loved one another for the sake of My Majesty? Today on
the day when there is no shade but My shade, I will shade them‟
Sayings similar to this are numerous in which brotherhood is instigated
which forms the essential part of the Islamic economic teachings as
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37
well. Because a person will not just be concerned of his own profit
motives and greed like in the present economic system but also about
those living around him. When collective benefit will take precedence
in the life of people over their personal benefit is the beginning point
from where the fragrance of prosperity for all arises. A sense of
belonging not just to a home but to a society when arises is from where
the roots of economic prosperity begin. People live like brothers and
brotherhood takes the place of greed and earning bundles of money,
storing them in banks to earn interest out of doing nothing, a kind of
free money earning benefit for people who possess some wealth
whereas poor have nothing to spend for food at times when abandoned
is from where the economic sense of prosperity arises. Brotherhood
thus form the part of basis of Islamic economic teachings, that people
start off by getting a change in their life style, not just worry about
themselves but of others around them as well, instigate in them the
sense of belonging to a society and accountability to God if they turn
away from carrying out that change. A spiritual community, who fear
God and thus does not wrong anybody, do not deal unjustly, help one
another, do not cheat or do any of those evils for they know they have
to answer their acts on the day of judgment and they recognize that
the world is nothing but a few years to live in after which they will
return to their Lord, for none can escape death and never has. This
spiritual sense is the only way which keeps men away from wronging
anyone, for if it not be for it, there is nothing which can stop them
from doing evil and wronging people for personal greedy motives
except the fear of their Lord whom they have to meet, the door of
which is death which none can escape no matter what.
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38
Real Money
It is also important to note here that to achieve complete economic
stability, money of real wealth, with intrinsic value of its own is also
important and we already discussed in brief the problems related to
paper money. Money like Gold and Silver served to be medium of
exchange for thousands of years and it was in its use only that Islamic
economics achieved complete success in past. The myths pertaining to
gold and silver being unviable and problematic are nothing but
deceptions because they were used as money for thousands of years
and in their use only economies achieved prosperity. It has not even
been a century till the use of paper money has been started, and in a
short span of its introduction it has resulted in evilest of calamities
which are evident before us. Introduction of real money cannot be
introduced in one go, it will take some efforts, but the return to such
will prove to be of prosperity and economic stability. It is something
which can be introduced by authorities of the world and countries but
it only can take place when there is awareness and knowledge among
people about it being viable and a better option and that the people of
countries and world force authorities to change our current monetary
system. So it all starts from awareness and efforts of people combined
for if it was possible to change a monetary system which worked for
thousands of years then what is the impossibility that the current
monetary system cannot be changed back to the good?
Principles of Islamic Economic Law
Resources are abundant: The principle of resources being abundant is
in direct contrast with the current capitalism which in its basic
Breaking the Chains of Economic Enslavement
39
principle says that resources are scarce in relation to ever growing
human wants. It looks at human wants being increasing which in fact is
a mistake. Because human basic needs never increase, the basic need
of food, health, shelter, clothing and education never increase. The
human desires for more and more wealth and luxuries may increase and
is in fact what is increasing today. The capitalism view of satisfying
these wants results in letting some individuals well of whereas others
deprived of basic needs of food as well. And as a result of this we see
statistics which say that 1% of people hold 40% of Globes wealth as per
statistics. Whereas Islamic principle looks at resources being abundant
to cater to basic needs of all. And when basic needs of all individuals
are satisfied then a step towards satisfying wants of luxuries can be
taken which in fact is reasonable and logical. It is mentioned in the
Quran pertaining to food being abundant:
Let man consider his food. How we pour water in showers. Then split
the earth in fragments. And cause grains to grow therein. And grapes
and fresh vegetation, and olives and dates, and enclosed gardens,
dense with lofty trees, and fruit and grazes, provision for you and your
cattle. (Quran 24:32)
It is He (Allah) who created for you all that exists on the earth
(Quran2:29)
Allah is He who put at your disposal the sea so that the ships may sail
by His command, and so as you may seek His bounty. (Quran 45: 12)
Interest free economy: Evils of interest are already discussed in the
first chapter, and Islam does not allow anything which is harmful to
prevail and work among people and societies. One of the primary
reasons for inequitable distribution of wealth is Interest and an
Breaking the Chains of Economic Enslavement
40
important element for the current financial crises. And because of its
harmful consequences Islam has clearly and strongly forbidden Interest
in all its forms and there is no distinguishing between high or low rate
of interest. All of it is forbidden and impermissible to be carried out in
an Islamic economic law.
Unlawful to trade in things harmful for people: There is no doubt in
harmfulness of liquor, diseases that can result of eating pork and
similar evil things like drugs and the likes. And thus trading in them is
forbidden and no loans are prov ided for dealing in such businesses or
even permitted to be carried out in an Islamic based system. Gambling
also is forbidden to be carried out for it is of no benefit for the
productivity in an economy and only creates imbalance in an economy.
Some get rich out of nothing while others are left to get poor out of
nothing which is ludicrous to happen and thus is forbidden to be carried
out.
Types of ownership under Islamic economic model
In Islam ownership of everything that exists belongs to Allah The
Almighty. All the property belongs to Him. However He gives human
beings a right of owning some of it. It is mentioned in the Quran:
And spend from what he put you in charge of. (Quran 57:7)
And he has provided you with properties and offspring. (Quran 71:12)
Breaking the Chains of Economic Enslavement
41
From what has been provided by Allah to Humans are manifested in
three forms of ownership.
1) Private property
2) Public property
3) State property
Private property: In contradiction to socialism which deemed nothing
to be of private ownership, Islam provides rights to individuals to
possess properties of its own. But also in contradiction to present
prevailing capitalism which deems that everything can be privately
owned, Islam lays down limits to what can be held as private
properties.
O you who believe! Spend of that with which we have provided for
you... (Quran2:254)
It is a natural human behaviour to have a desire to possess property of
its own, the property of which he feels comfortable and satisfied of
after possessing. So as per the view of socialism, it was an erroneous
mistake to deprive man of this instinctual behaviour. However what
this caters to is limited to what his needs are, what he requires for
himself, so it is rational that he owns private ownership of things like a
house in which he lives, the food he eats, the cloths he wears and the
likes. It is also not correct that he be given the right to own everything
stretching even to the oil resources, minerals, and water resources etc,
which are required to all, the point where the current economic system
under capitalism is ludicrously mistaken.
Public Property: There are some resources which exist in nature that
are of use to all, like water is something which everybody requires. It is
natural to think that seas, the rivers, the roads, the minerals which
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42
exist on earth belong to all and not just to certain individuals. So to
put ownership of such things to certain individuals is contrary to
nature. Islam thus makes certain resources being as public property
which belongs to all. Prophet Muhammad peace be upon him said:
Muslims are partners (associates) in three things: in water, forest
preserves and fire (Oil, gas etc). [Reported by Abu Dawood] “And its
price is forbidden” [Anas reported from Ibn Abaas]
It becomes clear from the above narration that in Islamic Economic
Law, minerals form a part of public property. These what are
mentioned in the above narration are not in particular but all those
minerals and resources which are of use to all are considered as Public
Property and cannot be put in hands of certain people. Although what
individual cannot possess are the minerals of uncountable quantity,
which are of use to all, required for utilization to all. Whereas limited
quantity of minerals can be owned by individuals. Once a man came to
Prophet Muhammad peace be upon him and asked him for some land so
that he would cultivate of it. The Prophet granted him a land, after the
man had departed; a companion told the Prophet that he gave that
man a land which contains numerous minerals beneath it. Prophet
Muhammad peace be upon then took the land away from the person. It
was because the land contained minerals which belonged to all, and
thus the land belonged to all and could not be given to a certain
individual to own it. Thus under Islamic Economic Law resources which
are of need to all are deemed as Public properties which exist in nature
for all, which are distributed by state among all the people so that
everyone is benefited from it. It is unlike the current economic system
in which many millions of people find it difficult to even afford these
Breaking the Chains of Economic Enslavement
43
necessities of life, but under Islam it would be distributed equally
among all.
State Property: It is a kind of property which the state owns, which
the leader has the right to decide what to utilize it for. It includes
spoils of war, land tax and the likes. The state can distribute it among
people or use it for any other purpose they deem important. It is
mentioned in the Quran:
“And what Allah gave as booty to His messenger from them....”
(Quran 59:6)
The booties which were with the messenger, who was the head of the
state at his time, were not for his own consumption or use. But rather
he used to distribute it. So he was just made to own the booties in
order to utilize it for the betterment of the state and the people. So
under Islamic economic law certain things are put under ownership of
state and they have to utilize it for the benefit of people in whatever
way the leader finds it to be best.
System of wealth distribution under Islamic Economics
1) Zakaah: It is one of the five pillars of Islam and forms an
important part in distribution of wealth among people. It is a
savings tax charged on savings of a person, if a person has
savings amount which exceeds 85 gram of gold, it is incumbent
on that person to give 2.5% of it in charity every lunar year. It is
unlike Income Tax which is prohibited under Islamic system,
which the government snatches away from people. People work
for their butter and bread, and when they earn something to
cater to their needs, government comes in and snatches sums of
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44
money as income tax which is unfair on part of people. But
under Islam, only the people holding excess money are taken
only 2.5% of it and it is distributed in poor. Those who do not
have any savings more than 85 gram of gold are exempted from
it. It is a system which rationally will help in equitable
distribution of wealth. If all the wealthy people, holding savings
more than 85 gram of gold start paying zakaah, it is enough to
eradicate poverty from the world. If only people like Bill Gates
start paying 2.5% of their savings which are in billions every
year, one can imagine to what extend it can make difference.
2) Rules of Inheritance: The set rules of inheritance in Islam are
such that they get distributed in such a manner so that the
wealth gets distributed and not remains in hands of few. So it is
not that when father dies, only the son inherits all of the
wealth. But it is such that it gets distributed among sons,
daughters, husband or wife, grand parents, brothers and sisters
and others and it is distributed in amounts set by the Islamic
texts. If there are no inheritors then the amount goes to the
state treasury. In this manner, the wealth gets distributed and it
thus also helps in reducing inequitable distribution of wealth in
societies.
3) The law of will: It is an inspiration to rich Muslims to bequeath
some part of their wealth to charitable causes for the reward in
the next life. It is a spiritual inspiration for well off people
before their death to leave off some part of their wealth for
poor or needy, or for causes like building a hospital, school
Breaking the Chains of Economic Enslavement
45
where common masses can benefit, and hence the distribution
of wealth is regulated.
4) Various kinds of charity: When a Muslim commits any mistake
or a sin, he is required to expiate for it by making charity to
poor, it is compulsory on part of the Muslim. Besides this,
encouragement for optional charity can also be found
excessively in Islamic texts. Like for example Prophet
Muhammad has been reported to have said:
Verily charity appeases wrath of the Lord and removes pangs of
death. [tirmidhi]
Surely the shade of the believer on the Resurrection Day will be his
charity [Ahmad]
Sayings like this are numerous which inspire Muslims to spend in the
way of Allah in charity so that wealth gets distributed among poor and
needy. It will only be in a society with spirituality and where
brotherhood prevails that such types of alms and charity will be
common and widespread.
Condemnation of hoarding of wealth
One of the reasons for the wealth remaining in hands of few is a result
of hoarding money which is common nowadays. Hoarding which means
to amass or accumulate wealth. But Islam strongly condemns the act of
hoarding and maintains that wealth keeps on circulating in the market,
Breaking the Chains of Economic Enslavement
46
if anyone does not have skills, he can get into mudaraba which will be
discussed further on. It is that the skill of one person and the capital of
other are used to start a partnership. If wealth keeps on circulating in
the market without getting hoarded it will result into equitable
distribution of wealth and it will not stockpile among rich leaving
behind poor who are in need of it. Under Islamic Economic law, people
will not be allowed to hoard money and will be forced to make use of it
and get into partnership or carry out any kind business with it. This is
to ensure the circulation and thus the prosperity for all among the
people. The condemnation of hoarding bund les of wealth can be found
in many Quranic verses. Consider some of them as follows:
Let not those who withhold and hoard God‟s Provision think that it is
good for them, it is bad for them. For on the day of resurrection
they will carry their hoardings around their necks. Allah is the
ultimate inheritor of the heavens and the earth. He is fully aware of
what you do (Quran 3:180)
But nay, for indeed, it is the fire of hell, Eager to roast, it called him
who turned and fled from truth, and hoarded (wealth) and withheld
it. (Quran 70:15-18)
Woe unto every slandering traducer. Who hath gathered wealth (of
this world) and arranged it. He thinks that his wealth will render
him immortal. Nay, but verily he will be flung to the consuming one.
(Quran 104:1-4)
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47
Islamic Banking
Islamic Economic Law to be implemented in its completeness requires a
complete fall of capitalism, that Islamic law of economics be
completely implemented. Yet in midst of all the fuss of capitalism, a
part of Islamic Economics has started to arise under name of Islamic
banks. Islamic Banks are institutions which are providing alternative of
conventional banking, thus eliminating the element of interest to that
extend. Efforts for installing a complete Islamic Economic Model will be
quite difficult, but efforts for instalments of Islamic banks will not be
that much difficult to put, as it has already started in many parts of
world including European countries. So until we achieve a complete
Islamic code of economics in our societies, efforts for more and more
of Islamic banks eliminating the conventional banks should be
widespread especially among Muslims.
Islamic banking has its roots seeped from the time of Prophet Peace be
upon him himself as elements of current Islamic banks free from
interest were in practice in trade at that time. But the system in
modern form, under the name of Islamic banks came into picture in
1963 in Egypt. It was Ahmad al Najjar who brought the first Islamic
bank into picture whose main element was profit sharing, eliminating
the element of interest. Soon institutions working on similar principle
started to grow in the country until in 1974 Islamic Development Bank
(IDP) was established; this is known to be the first bank explicitly based
on Shariah. As this bank arose, several Islamic banks like Dubai Islamic
Bank, Faisal Islamic bank of Sudan, Bahrain Islamic bank and others in
different parts of world began to come into play. Since then the Islamic
banks are spreading all across the world with great pace and supported
by Muslims and Non-Muslims alike seeing its viability and prosperity.
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48
Islamic banks are proving great success in midst of current crises under
conventional systems. Many countries including European countries are
adopting and installing Islamic banks which are proving viable and
successful for them. Efforts from Muslim scholars to fully put these
banks under Islamic principles are also important. These Islamic Banks
provide an alternative of putting money deposits as well as lending
loans to people, all of what a conventional bank does except that the
interest system which is a main earning fund in conventional bank is
eliminated. Some of the methods used by Islamic Banks are discussed
briefly as follows:
1) Mudaraba: It is a profit sharing system in which an individual
holding capital invests the money in the bank, the bank carries
out some business with the money and the profit is thus shared
in the pre determined profit sharing ratio. It can also be other
way round that a business man approaches the Islamic bank for
capital, the bank first analysis the business that a business man
is going to carry out. After they find the business to be viable,
they lend the money to the business man and the profit which
the business man makes with that capital is shared between the
bank and business man in a pre determined profit sharing ratio.
In case of loses, it is born only by the owner of the capital,
whether it be bank or the investor but the one who carries out
the business is also not rewarded for his efforts and thus
practically is also goes in loss. It is a system which combines skill
and capital; one possesses the skill, whereas other possesses the
money. They both are combined and the resulted profits are
shared leaving both the parties well off.
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49
2) Musharaka: It is the partnership system in which the capital and
efforts of both the parties are combined and profits as well as
losses are shared on a pre determined ratio.
3) Murabaha: It is sale agreement which entails that if a person
who lacks money wants to buy some property, here let‟s say a
car. The bank buys the car and gains full ownership on it and
then sells it to the client on a profit in instalments, profit is
negotiable and can differ if bargained by the client. And also
contract should be written after bank is in possession of the
machinery and not before they possess it themselves. After the
bank buys the machinery, the client is contacted and he has the
choice to write the contract or change his mind.
4) Ijara: It is a leasing system in which a person wants to take
benefits of a property on rental basis. An Islamic bank buys the
property and owns it completely and then rents it out to the
client for the agreed period of time.
5) Kard Hasan: It means good loan which entails that a person or a
bank gives loan to some needy without interest so that they can
carry out some business , the poor is required to return the
loaned amount without interest and he is not required to share
profits he would make. And various Islamic Banks keep some
part of their profits aside for this purpose. It is a kind of charity
and gift which Muslims are encouraged to do in the Quran.
Who will loan to Allah a Kard hasan (interest free loan to a needy
person), which Allah will double and multiply in his account. (Quran
2:245)
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50
Conclusion
The present financial crises are a witness to the fact that it direly is in
need of a viable economic system, a system which brings light back
into the darkened lives of people. Islam definitely has that system
which has worked successfully for about 800 years under Islamic
Empire. History bears witness to the greatness of this system when it
was implemented and adhered to, whereas capitalism which is in
working from some years has proven wonders of calamities. What was
provided here is just a glimpse to get an idea of what an Islamic model
is like, and there is lot more into this system. Efforts from both Muslims
and Non Muslims alike are required to put in place this system of
prosperity and divine wisdom because benefit of this system will reach
out to all, and it surely, historically, reasonably, logically is a viable
alternative for the current void economic system.
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51
Chapter 5
Steps Forward
The first step towards any change is to be equipped with awareness of
what we are up to and to spread that awareness. People need to
spread the awareness of flaws of current system, and viability of
Islamic way of economic system to as many people as they can. They
need to get people out of the notion that capitalism is the only system
we have and that it is providing people with goodness and
development. They need to recognize and make people understand
that the current world financial crises we stuck into are the result of
nothing but the current spread null economic system. And in midst of
this desideratum we need to get ready for getting changes starting
from our own very self. We have to be ready to sacrifice for changes in
our own lifestyles for the pleasure of Allah and for the betterment of
humanity. Because changes arise from individuals, and individuals need
to recognize their worth and impact they can make into the society. It
is only individuals combined who form nations and countries. They also
need to play the rule of being honest and truthful people. We need
Muslims to be trustworthy people, we want Muslims who have inside of
them the pain for their fellow beings who are suffering and dying. We
need them to get out of the gambles of being stuck in fusions of love of
wealth to such extend that they get blind in seeing and helping others
around them. They need to inculcate inside of them that they are just
travellers in this world who are headed to their real destination of
hereafter. So first and foremost these are individuals who need to take
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52
steps at their individual level. An individual can be a root which can
bring forth fruits for many, an individual if stands up for truth, an
individual if determined for a change can be a root cause to transform
the workings of the nations and bring revolutions. People need to
recognize that their individual steps can also make a lot of difference
in the overall working of the society. Realizing and recognizing the
flaws of current rampant system is not enough, affirming to the validity
of Islamic Economic Law is also not enough. But after recognizing and
affirming the truth, we need some practical steps starting from our
individual levels for implementation and working a way towards a
better society, for attaining practically a better outcome for the
betterment of all.
Knowledge is an essential tool and power against any form of evilness
spread around because knowledge has the power to change the
thinking and transform wholly the behaviour of a person. So to work for
a better humanity, knowledge is one of the essential p rerequisite
which we need to work on. Islam itself has made it an obligation on
every individual to seek knowledge. It is knowledge only which can lead
us from darkness to light; from the ignorance of evilness we follow to
light of what is better. And after seeking the knowledge it is essential
that we enlighten others with the light we hold. We need to work to
our best to spread the attained knowledge and make people
understand how unviable the current systems are. And make them
acquainted with the knowledge of alternative of Islamic Economics
which can prove better and helpful for everyone. And in this age of
internet gaining and spreading knowledge has become a lot more
easier, so it is one of the important practical aspects towards the
better future that we start gaining the knowledge of how the current
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53
system is flawed, what Islamic System is about and how it is better and
to make others understand the same to whatever extend we can.
Another very important practical step towards the better society is our
fulfilling the duty of paying the Zakaah from our wealth. Islam has laid
strong stress on this obligation and made it to be the one of the five
pillars of Islam. If the savings of a person exceeds 85 grams of Gold, it
is obligatory that 2.5% of it be given in charity every lunar year.
And be steadfast in prayer: Give Zakaah, and bow your heads with
those who bow down. (In worship) [Quran 2:43]
An important change contained within the system of Zakaah is that we
regulate the spread of real wealth in our societies. It is like if
somebody has to give Zakkah, he gives it in real wealth of Gold, silver,
rice and things like that. If required in some cases it can be given in
paper notes as well. What this will cater to is that it will help in
circulation of real wealth in societies. Just like when the banks wanted
to bring into picture paper notes of no worth, they ensured its wide
and far circulation in the market and societies. Similarly, to ensure the
spread of real wealth, this can prove to be one the revolutionary steps
if people start to adhere to it. Many Muslims are blessed with a lot of
wealth, if what they have to pay in Zakaah, they do it in forms of gold
coins, or silver coins will regulate the spread of these in markets and
societies. It will be beneficial for poor as well, because if they save
money in paper forms it soon due to inflation and devaluation decrease
but if they save it in the form of gold coins it will not be reduced in
value and will reap him the same fruits no matter when he requires
spending them. It will be beneficial for those who have cash reserves as
well to save them in form of Gold rather then earn cursed interest or
let them alone for getting depreciated and devalued. Moreover
Breaking the Chains of Economic Enslavement
54
business persons will get more of Gold coins if people start to buy
them, savings will start to get more in forms of gold and silver. And it
can soon lead into situations where market persons accept these gold
coins as means of payment due to its wide circulation as its worth
cannot be denied. Change starts from an individual and if this step is
adhered to in our societies it will slowly lead to a bigger change. As
said „Small steps taken lead us to a larger beginning‟, and for it we
need to recognize our steps. The first of which is that we gain and
spread knowledge and adhere to the commandment of Allah and pay
our Zakaah, for whatever Allah commands us to do is for our own good.
For the purification of our heart and for the betterment of society in
return for the rewards of hereafter which are eternal. And also we do
it in forms of real wealth as much as we can so that the shackles of
void spread of paper money get reduced.
We also need to pay heed towards what Islam has emphasized
regarding feeding the poor and helping the needy. This has been
neglected in Muslims overall, they spend extravagantly on themselves
but when it comes for feeding someone they are negligent and not
ready to spend a penny. We need to recognize that if Allah has blessed
us with wealth we need to utilize it for others as well. They can form
into a system as well where every colony or mahala has an institution
based in Masjid where every well off person donates some eatables or
money which then can be utilized for feeding the poor living in their
communities at first and can register some poor who are fed with the
help of donations in form of eatables and money from the people living
in a community. Islam has stressed a lot on brotherhood and helping
each other, and if we need a change in overall working of the
economy, we need to realize that we should be the first to change our
lifestyle, if we are not ready to sacrifice a bit and change our way,
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then we should not hope for nations to change their way, for indeed
nations comprise of people and if people change nations will transform.
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56
Further Readings
For those who are interested in further studying and in going in details
of all aspects of Islamic Economics, following books are recommended
Book Writer Al-Amwal (finances) Abu Obeid
Economic System in Islam Nabhani
Al-Kharaj Abu Yousuf
Perfect Political Economy Maliki
Fall of Capitalism and Rise of Islam Dr Mohammad Malkawi