There are lot of reasons why interest based economic system not good for society, in fact it leads to chaos during the recssion.
I'm sharing only one of it here. And InshaAllah it is sufficient to expose the fundamental flaw in it.
All interest based economy works in the following way:
The central bank of a country (Federal reserve bank in case of US) creates /prints currency and gives it to the countrymen on interest.
To simplify the matter let assume, this is begining of a country.
and first year the central bank prints 100 ($ or pounds or Euros or whatever) and give it to the countrymen on 10% interest.
At the end of the year the countrymen have to pay back the central bank 110($or pounds or Euros).
BUT the total amount of currency in the country is only 100 ($ or pounds or euros whatever..) because the ONLY source of currency in the country is the central Bank.
So where are addtional 10 ($ or pounds or euros) going to come from when DONT EVEN EXIST?
This is the fundamental flaw of interest based economic system.
Alhamdulillah! interest is forbidden in Islam...
For more details see this video (1,2,3 only).
http://www.youtube.com/watch?v=cy-fD78zyvI&eurl=http://drmaxtor.blogspot.com/
I'm sharing only one of it here. And InshaAllah it is sufficient to expose the fundamental flaw in it.
All interest based economy works in the following way:
The central bank of a country (Federal reserve bank in case of US) creates /prints currency and gives it to the countrymen on interest.
To simplify the matter let assume, this is begining of a country.
and first year the central bank prints 100 ($ or pounds or Euros or whatever) and give it to the countrymen on 10% interest.
At the end of the year the countrymen have to pay back the central bank 110($or pounds or Euros).
BUT the total amount of currency in the country is only 100 ($ or pounds or euros whatever..) because the ONLY source of currency in the country is the central Bank.
So where are addtional 10 ($ or pounds or euros) going to come from when DONT EVEN EXIST?
This is the fundamental flaw of interest based economic system.
Alhamdulillah! interest is forbidden in Islam...
For more details see this video (1,2,3 only).
http://www.youtube.com/watch?v=cy-fD78zyvI&eurl=http://drmaxtor.blogspot.com/