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AbdiWahab252 wrote:I wonder how Islamic Finance can operate without time value of money

It can cause it operates under a different economic structure.

In islamic finance there is No Artificial money, every note printed is backed up by gold or something of that nature. Due to the intrinsic value in precious metals stability is achieved and devaluation and inflation controlled . In the western economic system you got notes that are printed and then circulated, it increases the artificial consumer spending power which leads to inflation, as artificially increased money supply is competing in chasing limited goods. They can't control the inflation

It make sense if you look at Puntland and Somaliand as well. What do you they do? just print notes and keep on printing until the amount on the note isn't worth the paper its printed on.

Why ask kolombo of all people, do you have any particular reason?

Kolombo, takes his Haram/Halal knowledge from Qardawi, as he advocates and go find out what the real scholars have said about Qardawi...

what if I borrowed $50 from my brother and he expected to get back $50 but out of appreciation I give him back $100 when some time has passed, is the extra $50 riba?

salafi_student wrote:Kolombo, takes his Haram/Halal knowledge from Qardawi, as he advocates and go find out what the real scholars have said about Qardawi...

Don't your cult leaders call Sh. Qardawi the "Howling dog" and King Abdallah of Saudi Arabia "Ameer al-Muslimeen"?

I rest my case.


Advo,

If the extra $50 is a gift, you can give him, just make sure you make it clear from the begining.

I for one think this is bollocks. A $100 note is not worth the same amount today as it was in the 1980's. This is not gold, where you can rely on its face value. This is paper money.

Look at the situation in Zimbabwe. You require billions to buy bread, but you only have to pay back $2000. Pfft!

Padishah,

There has to be a way to explain TMV in Islamic finance.

There are only seven English speaking people qualified to answer your question with a degree of authority, AbdiWahab, and they're currently working on the next Halal financial instrument.

Padisah,

I am extremely skeptical on certain Islamic financing especially their "mortgages"

I am curious to know why the House of Saud are one of the largest owners of Citigroup.

AbdiWahab252 wrote:I am curious to know why the House of Saud are one of the largest owners of Citigroup.

Its easier to ban women from driving than its to abstain from riba.


Where are the "Salafi" clowns to accuse me of "envying Saudi Arabia"?

Abdi, Islamic banks charge fees as their cost of lending, but you as an individual can't charge anything unless you're some horrible loan-shark because your dad never informed the borrower of your terms of lending before the agreement was entered.

Kolombo,

I am going to leave you and your brothers in the Ikhwan movement sort yourselves out.

eyesonly,

Still no reason not to offer the same amount 28 years later. The worse thing is that the borrower is now relatively well off

AbdiWahab252 wrote:I am curious to know why the House of Saud are one of the largest owners of Citigroup.

Such members of the House of Saud do not differ from you, as you own stocks (including beer/wine stocks) that do not comply with the teachings of Islam. Members of the House of Saud aren't saints, awliya or infallible; anyone who thinks/thought that is mistaken.

eyes-only wrote:Abdi, Islamic banks charge fees as their cost of lending, but you as an individual can't charge anything unless you're some horrible loan-shark because your dad never informed the borrower of your terms of lending before the agreement was entered.

Very well reasoned response. Abdi's dad didn't state he wants the value of the money at the time it's returned. Therefore, the borrower is only obliged to return the same amount.