God's war on usury

[ابو الوليد البتار]

God's war on usury

The American subprime mortgage crises and

God’s war on who deals with usury

Photo for the Economist magazine cover (The Economist)5 Nissan/ April issue 2008 which illustrate the credit pressures caused By Subprime mortgage crises

God Almighty says in his holly book Allah will destroy Ribâ (usury) and will give increase for Sadaqât (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners).verse276 (ALBAKARA)
Subprime mortgage crises (its losses are 400$ billion dollar)
The year 2000 is considered to be the start to forming the real estate market bubble in many industrial countries and especially America when banks had started to grant unprecedented loans (greed of usury dealers) with different kinds of real state loans especially the housing loans, accordingly its prices increase. The crises happened in 2007 when most of debtors failed to pay these usury loans (interest rises according to risk) so banks became not able to collect installments of these loans (normal result)! And that is another factor which negatively affects the American currency (distrust) because most of the affected people were companies and the American people.
The financial weapon of mass destruction
Have you ever heard about ‘The financial weapon of mass destruction? In other words master of disasters (usury the giant). It is the credit default swap (CDS), most likely no one in the Islamic world have heard about it. I will explain what CDS is according to my understanding to the articles which talk about it and its danger. First I will give an example about the concept of insurance and to link this example to the CDS, after that I will talk about the danger of this product and how much this product is dangerous and has a big danger on the economy .
What is the CDS?
It’s a system which is near to the principle of insurance. Let us take an example on insurance companies. Suppose you have signed an insurance contract to cover your home, according to it the insurance company will make the compensation in case of fire or natural disasters. And remember that the insurance sector is “developed” (this development was originally used to protect the insurance companies) so it’s easy for the insurance companies to slip away from its obligations if necessary.

A published Caricature photos in some American magazine shows Greed ,Of usurers by collecting Innumerable sums of money which are on the shoulder Of the poor people
What is the relation between the CDS and the principle of insurance?
There is a problem that worries the banks and the financial institutions (usurers) which is how to ensure the continuation of revenues of the usury debts in case the borrower is unable to pay, and if this matter is achieved, it will be easy for the usury lending to expand.Human devils in JP Morgan financial institution (bank) made a solution and invented a giant solution called Credit default swap. Example: imagine there was a photocopying company and this company had borrowed 45000$ from bank 1 in this case bank 1 makes an agreement with bank 2 so that bank 1 will pay a quarter installments (most of it is quarterly but it could be yearly) to bank 2 and bank 2 undertakes to pay a compensation (as agreed in the agreement) or to buy a specific shares (as agreed also in the agreement) in case the photocopying company is unable to pay to bank 1.
Certainly, you can say it is an insuring loan operation but!!
1.Bank 1 is not necessary to be a bank.
2.Bank 2 is not necessary to be a bank.
3.There are no clear rules to legislate CDS but only an agreement between some parts and each agreement has its “rules” , the problem is that each part has the right to explain that the items of each agreement based on CDS.
Accordingly any person could be a part in the CDS. This will leads to a new problem which is the speculations but how? Suppose you are an investor and some how (insider trading) knew that the photocopying company will not be able to pay the loan, so all what you do is to buy some CDS units and you will win the compensation by bank 2. (Is it gambling or investment?)
Open your eyes and read 45$trilion (45$thausand billion) that is the CDS market which had started in the middle of the nineties!! Almost there is no company in the industrial world that didn’t contribute as a buyer or a seller (JP Morgan is considered to be the biggest buyer or seller at the same time)
Since there is an imminent international recession, AIG company announced the payment of 11$ billion as a compensations (CDS seller) , so it achieved the biggest losses in its history which extend to ninety years. Point Of Scrutiny
God almighty had prohibited usury and threaten who deals with it with the war as god says O you who believe! Be afraid of Allah and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers.,And if you do not do it, then take a notice of war from Allah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums.) Verse 278,279 (ALBAKARA)
So it is clear for us some of the huge losses to who deal with usury even they are lenders or borrowers as the threats of almighty god.

---

God's war on usury

[محمد نصر]

thank yuo my brotherABOALWALEED