The heart of all that is the D….. situation and Muslim banking is the time value of money, also know as interest. Its not a conspiracy that the banks have been holding back against us for years – keeping us in the slavery of zero wealth.
So why does it exist??
Well a lot of it has to do with the fact that paper and 00100010110’s in the bank are not intrinsicly worth anything, they cost virutally nothing to produce!! Thats right… shock horror, this is different to the precious metal situation where gold has an intrinsic value and cannot be recreated/reproduced as it is a scarce resource.
So why do people care about paper and 00101010 so much. Well thats because the governments and reserve banks try to control the value of them through money supply and monetary policy. When governments are reckless with this you may find you paper and 010011100 fluctuating in intrinsic value.
So how would no interest affect this situation? Well charging no interest on money is really a proxy for saying money is worth nothing, thats right NOTHING, nadda. So all the 1111010 in your bank would be worth zilch if we lived in a world of no interest – you would not be able to exchange them for a loaf of bread because bread has intrinsic value and 10101010 doesn’t.
However this is slightly different from the D…… situation which really comes down to someone being able to AFFORD to charge you no interest. if they can its becuase they are making money elsewhere not because they aren’t making any from you. And if your writing $billions of loans, it wont last very long.
So no interest…..
I don’t want to live in a world where someone mugs me while I wheelbarrow some cash down to the grocery store to pay for a loaf of bread…… only to seem them tip they money out and run away with my wheelbarrow
Cheers
TJJust because interest is not charged to one party to a complicated transaction does not mean interest is not charged or earned in the process. I think you will find that your wheelbarrow is safe and the money would be taken instead.
Robert Bou-Hamdan
Mortgage AdviserRob…you know that the product does not work…why embarress yourself anymore?
People were genuinely happy to see you back …don’t make then change their minds after just 48 hours.
Thank you for your valuable and intelligent input Nat.
One thing… who told you that I think the product does not work?
Robert Bou-Hamdan
Mortgage AdviserRob didn’t I try to warn you a few months back about throwing your credability down the drain by attaching yourself so firmly to the group in question…even you must realise that a little bit of caution at that point would have been prudent !!
I’m the first to admit that I would love to take out an interest free loan but I know it just ain’t gunna happen
Nat, I don’t believe I threw my credibility down the drain at all. I believe my credibility is impeccable!
I risked my business and a lot of time, money and effort (as did many others) to check out a new product offering so my clients could potentially benefit and would not incur any costs or losses by having to check things themselves (especially if things went bad). I can’t think of anything more cautious than putting myself forward instead of my clients. Different people have different risk profiles and I guess mine is just higher than yours. I mostly enjoyed the experience.
What I didn’t do was sit on my backside criticising something I never looked into properly because I believed (but did not know) it was not possible. There is no way you can say you checked this product out properly because you have never had access to the internal structures behind the offering. I can also say that some of the lenders still have teams of staff working on creating a similar structure. I don’t think they would be doing this if they “know” it won’t work as you say you do.
Sorry to burst your bubble Nat, but the interest free product is a real possibility. I have no real issue with the product itself. The problem faced is a management issue. As others who participated in checking this company out can verify, I spent considerable hours crunching numbers every way possible to ensure this could work when I worked there.
I am more than satisfied that the structure is profitable. My only concern was with one part of the structure that would attract the large investors which I never had the opportunity to look into. If this part is solid, I have no problem with the structure at all. If it is not real, the structure can still be profitable but not at levels that would attract the funding required.
Can we get past this now and wait until the company starts or collapses and then discuss it further then please?
Robert Bou-Hamdan
Mortgage AdviserRob..good points raised…and yes it “possible” to use the structure they have except that no real investor will ever put money into to fund the machine (ie into the area you did not see)….hence the problem and the product starts and stops there.
I agree …lets leave it there until there is a definative outcome.
Kind regards
NatalieFantastic Nat!!!
Dinner????
My shout!!!!
Robert Bou-Hamdan
Mortgage Adviser
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