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Ahsen Mukhtiar

Student & Researcher,

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Can we live without compounding interest rate?

It is an established fact that interest is oppressive in any form to anyone. Individual debtor or government all have to suffer. I am not an expert but to me it seems to be a vicious trap. Compounding rate are always on the rise increasing debt many folds in no time. Some would say that same compounding applies to savings account then why its bad? but time value of money shows that currency depreciates more quickly than other specially in Debt seeking countries.

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    Aug 7 2013: "It is an established fact that interest is oppressive in any form to anyone."

    oh. then it seems my views are outdated, and i need to go read ... what exactly?
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      Aug 7 2013: with due respect can you quote an example of any country saving its skin from compounding interest debt trap??? . Why financial markets are so much fragile and crises hit us quite often??? any ways
      Just have a look at statistical justification of this scholarly paper (you could ignore religious limitations if you want to)
      http://www.emeraldinsight.com/journals.htm?articleid=1817324&show=pdf
      and
      http://www.theautomaticearth.com/Finance/compound-interest-friend-or-foe.html
      just have a look at page 5-8 ignore religious foundations
      http://msmsoton.files.wordpress.com/2008/02/guide-to-interest.pdf

      I wish i could share more but If you want to study more then i have books to offer based on Christianity and Islam but Interest is more bad then
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        Aug 7 2013: tl;dr

        care to summarize?
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          Aug 7 2013: Simply Interest is oppressive and that is why wealth is accumulating with few and Africa is starving to death.
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        Aug 7 2013: voluntary interaction is by definition not oppressive. banning interest is oppressive. it is not surprising that you are confused when it comes to oppression. your religion is oppressive.
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          Aug 7 2013: My religion is not oppressive and never ever give any one right to harm anyone in any matter. This discussion has nothing to do with religious affiliations because if this was so then Riba (Interest) is forbidden in Islam. Why would i question then?? Its the freedom i have so let yourself free from the spell of Capitalism. Dear I have asked so many question from you earlier in this thread and one more why people in America protest against wall street atrocities?? When G8 summits are announced why people get angry, they are from G8. They are leading Interest based economies.
          Interest is showing its evil side and you are wise enough to study it.
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          Aug 7 2013: Okay banning interest is oppressive ?? how can you say that .. If this system is so good then why we are facing problems??
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        Aug 7 2013: i call the readers attention to the fact that i wrote 4 sentences, and you replied one of them. is this a sign of an honest approach?

        or for example my original lament about the opening statement, which starts with calling a rather arbitrary claim an "established fact". is this a sign of honest approach?
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          Aug 7 2013: Calm down I am here to learn so you guys are adding knowledge to me. I claimed on the basis of the reads i got and few are shared with you as well. Prove me wrong or them.
          My query remains can we live without interest system in present world or not? how or why not?
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        Aug 7 2013: let me use the tool of an example.

        what if (!) i say "islam is bad, therefore we should ban it".
        you would reply: "this is oppression"
        then i say: "if it is good, how would that be oppressive??"

        see the problem in this reasoning? oppression is the action of banning a voluntary activity. like living according to the teachings of islam. even if i think it is wrong, i can not push my views on other people. that is oppression. whether islam or a variant of it is good or bad is another question.

        hence my statement: banning interest rate is oppression. regardless of interest being good or bad. voluntary transactions can not possibly be oppressive.

        you are so much used to have oppression, you don't even notice it anymore. it became a part of your life.
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          Aug 27 2013: Generally speaking you are right Krisztian, but I would not blame nor meddle religion into it. By doing so you are only antagonizing people and making them stick to their opinions even more.

          What I suggest is the promotion of observations instead of opinions. It is much better to have observations than opinions for the sake of accuracy. To illustrate this it is enough to imagine any kind of emergency. Does anyone stick to their opinions in a state of emergency? Not really. Action based on observations seems to be more accurate and true to fact.

          People can afford to have opinions only when they are 100% right, but then, who is like that?

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