Breaking the Conspiracy of Silence – Part-4
By Zubair Arif
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 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 evils 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% 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 labor problem, less labor 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 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 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.
[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 system brought in by institutions like World Bank and IMF after World War 2 for their penny gains and enslavement of countries.