Salaams people.
We all know that "interest"/riba is haraam.
But what we do not know/take into account or know how to take into account is that most modern currencies are based in interest.
They are a form of debt. Every pound in your pocket is a sort of promise to pay it back along with some interest on top.
We get paid debt, we spend debt. The system works using interest.
Does all that worry you? Worry no more, we have a new probably-halaal currency - The American Dollar!
US rates slashed to nearly zero
The US Federal Reserve has slashed its key interest rate from 1% to a range of between zero and 0.25% as it battles the country's recession.
In its statement, the Federal Reserve warned that "the outlook for economic activity has weakened further".
It predicted that rates would stay at the current exceptionally low levels "for some time".
It added that it was considering ways it could spend money on supporting the economy and credit markets.
Analysts said that the key rate is now virtually zero.
"Whether it's zero or 0.25% actually does not make a huge difference," said Holger Schmieding at Bank of America.
He added that the more important factor is what policymakers plan to do now that they cannot cut interest rates any further.
The Federal Reserve is already injecting billions of dollars into the banking system as well as buying debt based on home loans.
Postpone purchases
The Federal Reserve stressed that it was already planning to buy large quantities of additional debt based on mortgages and is considering whether it would be a good idea to buy long-term US government bonds.
Read More @ BBC News.
Thank you Bush for managing what many muslims have been wanting for a long long time - a global currency no longer based on interest!
The worrying thing? The interest rate are "around 0%" because many of the monetary systems cannot cope with a rate of 0.00%. They cannot cope with an interest free world!
PS there may be some other currencies (may be some arab countries?) that are not based on an interest based system, but I do not know of them. yet. Please educate me.
I like being positive. Sometimes.
"For too long, we have been a passively tolerant society, saying to our citizens 'as long as you obey the law, we will leave you alone'" - David Cameron, UK Prime Minister. 13 May 2015.
I read on the Daily Mail's front cover that, it is bad news for the savers which outnumber the borrowers. But I think that the savers will cope fine, isn't the interest on mortgages alot higher than the interest on savings? Plus savers will still use the money that they have by earnings.
“Before death takes away what you are given, give away whatever there is to give.”
Mawlana Jalal ud Din Rumi