Riba is a topic many people don’t take seriously or because if it’s nature as in it’s everywhere and in anything these days it’s often overlooked as normal but it’s a terrible terrible slippery slope once you go down it so thank you for highlighting it
Like how some people conflate usury and inflation when actually inflation is one of the main casualties of usury 🤨 also the lender is actually taking the biggest risk BUT when considering the economic system we live in it’s designed to protect the various lenders of conglomerate lending institutions through punitive consequences with credit score system in place that restrict people’s basic needs of food housing based off a cooked usury based credit score….so who’s really at risk
@@beckham231017 Yes, my point is that the lender takes a risk of not being paid back. Without interest, they risk not being paid while getting nothing in return. They can decide to do that but can't see why they would.
That’s actually not true another man does a video on this. When these people create these loans, they can and do target people who can’t afford them (housing market crash 2008) and then they insure themselves so they don’t lose any money if money isn’t paid. It’s pretty ridiculous to think those higher ups think like us. They don’t.
They go into partnership with you in a business. Say you give me 100k to start a restaurant, I work with you a plan where you get 60% of profits until a specified date. This therefore encourages the lender or partner in this case to assess the loan risks more acutely because he will share in the risks in operating the business
Interest is exploiting. Its impossible for it to be not exploitable. Interest is evil and its the the root cause for almost 99% of problems in the world.
@@zharahussain8004 there are two points here. 1. Risk of lending money to someone 2. Fiat currency The first isn't really important regarding interest and riba so I will not expand on it. Money as we know it today is just a piece of paper (or digital value) that is just a promise that the central bank will be backing its value. Back in the day money was actual assets like gold or silver. So I give you 10 gold coins and ask you for 11 gold coins in a year, that is riba. But if I give you 10$ and ask for 11 is not necessary riba because in one year the purchase power of 11$ might even be less than 10$. But assets have an intrinsic value (except in a bubble market, like some housing markets)
Interest is not I give you 10$ and you pay me back 11$ next year it’s based on the percentage of the loan owed every year, calculated like that you will end up paying 20-30% of the original loan which is much more than the 2% inflation per year.
@@jalilullahIshaqzai First of all inflation is not 2%. Second of all the inflation you are probably referring to is only CPI inflation. Inflation can be different depending on the items you look at. Second if i give you 10$ now and request 11$ by end of ear that is a 10% interest (learn the basics). Third if you get a mortgage of 560k (80% of a 700k home) you would pay a total of 968k (interest and principle) in 25 years. Do the math, it comes down to 2.2% on average per year. Now go find me a country with a better inflation rate than 2.2% over 25years.
