Why riba is haram

Dear reader,
Here is an easy explanation why religions ban usury

  1. To satisfy demand for loans and market operations (purchasing financial assets), banks create money out-of-nothing. They do not need our savings.
  2. The money is lent as debt (claims on your assets and labour) at interest (which is not created along with the principal).
  3. Payment of interest exhausts the money supply* requiring ever more loans for money to transact in the economy.

Corporations are forced to keep growing (chewing up the planet) to pay interest. The single largest government expense (all governments) is interest payments.

Compound interest and exponential borrowing inevitably leads to bankruptcies, ie., transfer of wealth to the hands of the very few.

Business cycles (intentional credit contraction by banks) accelerates bankruptcies and dispossession of individuals, corporations, and governments.

The end of a currency cycle (Kondratieff) means that the system is bankrupt, and wealth transfer negotiations take place on a grand scale (comparable to grand theft from wars) before a new cycle of dispossession is started all over again.

The credit for this insight goes to Michael Rivero, Sarah Emery, Imran Hosein, and Richard Werner, (please view the links)

Here is a telling verse from the Torah (Deuteronomy 23:20)

Margrit Kennedy and Bernard Lietaer have demonstrated that almost half of retail prices are the accumulation of interest.

Solutions include debt jubilees explained by Prof’s Michael Hudson and David Graeber, while Islam mentions charity on excess wealth (Zakat), and insists on intrinsic money like the Austrian school. But for us to be free of the parasitic monetary system we need to develop interest-free (crypto) credit.**

Thank you

*Please note we are typing about the demand side (main street) money supply, not reserves not borrowed (the reason QE does not lead to CPI inflation) typically used to purchase financial assets and ownership (hypothetically throttled by CB reserve requirements (borrowed anyway) and insolvency (bail-outs and bail-ins)). Unlike the loan principal which is canceled on repayment, interest does not disappear but is income used to pay expenses and taxes, distributed to shareholders, and retained earnings, like any other company.

**Interest differs from profit (which may be participated in under Sharia and Halakhah) in that profit does not compound and bears risk to the investor, unlike interest which leads to indebtedness and servitude. Furthermore profit is on products and services rendered, while interest is on money which should simply be the unit-of-account (UoM for bookkeeping (how does one charge interest on metres or hours?)) and means-of-exchange (to facilitate trade). Money is a store-of-value only due to its tradability for products or services. 

Compounding interest leads to exponential wealth disparity.



Skills shortage

Arse-creeping (brown-nosing) is the most common skill in the layers upon layers of corporate and government bureaucracies who employ the vast majority of people. Those who master the skill earn fabulous wages and bountiful pensions, groveling and prostrating to those above, while treating “inferiors” with contempt and disdain, while basking in the deference, accolades, and forced laughter.

A good arse-creeper has a far more luxurious life than a skilled specialist delivering quality, useful work.

Bureaucracies can only exist as monopolies backed by government coercion, and control the major value chains so that hard-working, competent private enterprises somewhere along the line are forced to grovel, comply, and bribe bureaucrats for the opportunity to deliver something of value to society.

Yes, there are a small number of loud mouths who make money using social media to sell courses on making money, but the skilled, experienced practitioners who create and maintain our societies, spend lives of hard work just to getting by, then retire impoverished, in contrast to the puffed-up pen-pushers with defined benefit pensions.

In the very few bureaucracies that pretend to something of a service, there is a thin layer of specialists along the bottom who do something useful, while layers upon layers of managers and administrators consume the lion’s share of budgets, feeling important by impeding the specialists and making the rest of our lives miserable, when actually doing anything.

We work half our lives to pay for government bureaucrats’ comforts (or face jail time), while much of what is left is lost to monopolistic prices on housing and necessities, feeding corporate beaurocrats.

It’s time to toss these crushing parasites, and keep the fruits of our labours for ourselves and our families, through community supply chains, co-ops, and currencies.

Mandela and apartheid

In 1880 the British attacked the Boer republics (also of Western culture) and were soundly defeated at Bronkhorstspruit, Laing’s Nek, Schuinshoogte, and Majuba.

In 1899 they tried again suffering three devastating defeats by the Boer Republics at the battles of Stormberg, Magersfontein and Colenso. Even with a 1/2 million men invasion force (their most expensive war) the British still could not succeed despite scorched earth and concentration camps (murdering 1/3 of the Boers, counting women and children).

In 1902, having failed on the battlefield in a war they could no longer afford, the English succeeded in bribing two generals (Botha, Smuts) who became subsequent prime ministers under English occupation, to sign a peace treaty.

In 1910 the English forced the Republics into a union with the colonies and black regions.

In 1913 the Boers rebelled. Smuts used the forces to kill his own including General de la Rey, and Jopie Fourie, an officer who served under him in the war against the English, whom he had shot.

In 1914 the pro-English government invades German South West Africa (now Namibia), a sympathizer of the Boers.

In 1917 Russia succumbs to a Bolshevik coup d’état, financed out of New York.

In 1922 the Union government used the army against Boers striking over their jobs being given to foreigners, killing 200.

In 1948 the English stoolie government ended. The English occupation lasted less than 40 years.

The national government started developing (at enormous taxpayer expense) the black regions to make them economically viable to become independent of the forced Union again, a policy called separate development, or “apartheid” by the media.

Societies who were illiterate, neolithic, subsistence farmers.

Ciskei and Bophuthatswana had their own governments. Transkei and Vendaland were almost self-governing. Kwazulu had their own government (Inkatha) but preferred to remain in the union, although they strongly resisted inclusion in the “new South Africa” under black communism (ANC).

After WWII, the Soviets instigated “independence” from European colonizers in many African countries turning them communist.

In 1964 Mandela was tried in open court (Rivonia trial), and was well represented by international lawyers. Mandela and others (ANC) were KGB trained and equipped communist terrorists charged with 221 acts of violent sabotage. Any democratic country would have convicted them !!

In 1966 Verwoerd was assassinated (third attempt), a coup d’état by the Broederbond (Brotherhood) and thus the last Boer prime minister. The “architect of apartheid” was in fact a caring sociology/social work professor. Succeeded by the wino, Justice minister, Vorster.

In 1967 every copy of the Hoek report to parliament on international monetary powers was ruthlessly hunted down and destroyed, and prof Hoek sworn to secrecy.

In 1973 the US lost Vietnam to the commies.

In 1974 Portugal succumbed to a communist military coup, euphemistically called the the “carnation revolution”, making their (bordering) colonies, Mozambique and Angola, available to the Soviet Union, and forcing the Portuguese there to flee their homes for their lives (much like Congo, Uganda, Kenya, Zimbabwe (later), etc.).

In 1976 Kissinger and Vorster betray Rhodesia, a sibling country bravely fighting for it’s life against the communists, by closing the border.

In 1976 the Soviets invade through the former Portuguese territories.

In 1977 Carter imposes sanctions on South Africa, making oil and weapons unavailable. Even forcing Europeans to disinvest. SASOL became the world’s largest oil from coal producer

In spite of piling in millions of tonnes of armour into Angola, the Soviets were unable to break through to South West Africa (Namibia). There were also fronts in Rhodesia and Mozambique as well as vicious KGB instigated internal terrorism.

In 1985 Mandela is hauled out of jail and groomed for government in England.

In 1986 the de Kock commission recommendations are implemented handing the creation of the national currency (Rand) over to private banks.

In 1987 the Soviet forces are stopped at Cuito Cuananvale (one of many battles) losing 4,785 killed, 94 MBTs, 9 MiGs, and hundreds of combat vehicles. source Chester Crocker

In 1988 the drunk foreign minister (Pik Botha) gave away South West Africa (now communist Namibia), which was not even on the table, in the pub at the Cairo negotiations about mutual (Soviet/SAfrican) withdrawal from Angola. Months later the Soviet union collapsed, which explains the rush.

In 1994 Mandela has a staged release from prison with a prepared government.

Boer, Zulu, Tswana, and Xhosa (Ciskei) resistance (almost civil war) to this take-over was severely dealt with by the de Klerk transition government.

Note that neither wars against the English empire (1880/1, 1899-1902) nor Soviet union (1976-1988) were lost on the battlefield, but by treason. In both cases, while citizens and soldiers were fighting for survival, CEOs, generals, and politicians were betraying the country.

There are no examples of successful communist governments on the planet. In fact communism cost 70 million lives in the Soviet union, 100 million in China, and in South Africa the murder rate of food producing farmers is 228 per 100,000. The murder rate of the general public is 36 per 100,000 using government statistics, compared to 1 per 100,000 in Europe and 5 in the US.

Please see comments section below

Regarding the current disowning of farmers

The 1913 Land Act, an English, not Boer, survey show the areas settled by black (Bantu) people. 

1913 land actIn comparison (2nd image), ample provision was later made for land claims, but the communist government continues to take land.

There can be no claims to farmland never settled nor infrastructure never built.

In Zimbabwe and Mozambique, they stole intact, high-yielding, farms, yet failed to feed themselves.


Marxism and fascism

Fascism is government by corporations, not for (by) the people. By that definition all “free” democracies are fascist.

Marxist criticism of corporate government is accurate, which is why it attracts so many adherents to communism.

However, the marxist solution is a government far worse than fascism. A system that has caused many tens of millions of deaths.

When no-one owns anything, who owns everything.

To know who “they” are, simply look at the instigators behind Bolshevism, the ANC, and the media that decides what you will know, and what you won’t.


Government is an occupation.

Like the Danes extorting danegeld from occupied regions of England, or the Norman invasion building a network of forts around the country for tax collection.

Government is not “we the people“; it is a separate entity like General Motors or the Vatican. While GM sells cars, and the Vatican sells hope, the government uses extortion to acquire income.

Consider that the largest agencies of government are for extortion – revenue, incarceration, justice, police, “defense”, spies

Even in those agencies that do provide a service, there is only a thin blue line along the bottom that actually does anything useful. Piled on top are layers upon layers of bureaucrats gorging on tax, while making life miserable for that thin blue line, and the rest of us.

For eg. only about a third of the tax money assigned gets to the nurses, teachers, works, etc., most being lost in the bureaucracies.

We work seven months of the year to feed bureaucrats motivated by only pension, promotion, and turning budgets into bribes. This leads to duplication and complication in order to justify more staff, more promotions, more contractors, more software licenses, etc.

Not to mention discretionary grants and subsidies to profitable corporations devouring a third of the imposition on us.

Still not convinced? Try leaving the farm. You need to grovel for a passport after sacrificing your privacy for permission to travel for a limited time beyond the pen. Then the government forces tax payments on any income even outside of the pen.

We need to privatise clinics, schools, works, etc., and close down the bureaucracies. Half the cost; double the efficiency.

If government services were actually useful and efficient they could sell their services in the market without extortion.


Crypto wallet

Private banks have made enormous progress at improving technologies for our convenience such as online banking, easy payments, etc. What does it matter if our money is not in our pockets, but in a bank?

Does it even matter that it is not even money, but a credit (called currency) lent to the bank? What we want is convenience and ease-of-use.

The security of the monetary system is hardly our responsibility.

Continue reading “Crypto wallet”

Self-funding credit (bank-free currency)

We are painfully aware of the severely distorted distribution of wealth on our planet, and how it came about.

Global wealth distribution pyramidBut

But what can we do about it? Continue reading “Self-funding credit (bank-free currency)”

Free money alternatives

thinking about moneyWe have been trained to accept that capital comes from savings. Savers are paid interest, and lenders are charged a little higher rate to cover expenses, and hopefully make a small profit in the end.

Well, we now know this is not the case…
Continue reading “Free money alternatives”

Removing the constraint of currency for full employment

It is common knowledge that banks do not lend out savings, but rather create money out of nothing when a contract is signed.

For example, the currency (account balances) for a mortgage does not exist until the contract is signed. Then a bookkeeping entry gives the bank an asset and the borrower a liability.

This newly created currency can then be used to purchase a house, materials, contractors, etc.

But there’s a catch …
Continue reading “Removing the constraint of currency for full employment”

The magic of money

Once upon a time a little village had merchants such as the baker and brewer who provided bread and beer to the carpenter and farmer, knowing that in exchange the carpenter kept the furniture and fittings in order, while the farmer supplied grain at harvest time.

Friday afternoons in the pub they often pondered on how to trade with the village up the slope for grapes and wine, and the village downstream for beef and milk. The dilemma was coinciding the availability of products to barter, for eg., milk was available daily while wheat could be offered only at harvest time.

It would be difficult to establish the required trust to settle what is owed with strangers, or even neighbours who were not friends or family. So trade was stalled.
Continue reading “The magic of money”

The laughing lion and the doves

Perhaps the ashes of the labour guilds will be the phoenix that will form the nucleus of an alternative to bureaucracies, both corporate and government.


There is a thin layer of capable, productive people preyed upon by pyramids of parasites, whose livelihood depends on subjugation and exploitation of those few capable of wealth creation.

Parasites who live in a world where scraping and homage pays more than quality and production.

This is a world where human rights and freedoms do not exist. Indeed humans are considered resources and HR departments there to enforce corporate policy on those subjects.

However, the system won’t fix itself; it will have to be replaced.

Continue reading “The laughing lion and the doves”


Once upon a time an entrepreneur envisaged a watermill in a village with all the resources and skills to construct one.

https://www.flickr.com/photos/75894308@N03/7657361676The mill’s construction drew on forests and quarries for raw materials, and on carpenters and masons for skills, stimulating demand and thus economic activity.

Once the mill was completed, the village could reduce costs of flour and products such as bread and pastries which could be sold beyond the town limits. Cereals from neighbouring towns were also milled, making the enterprise a success, and the town prosperous.

Continue reading “Financing”

It is our duty to be free

It is our duty to be free

If a soldier is imprisoned by the enemy, don’t we consider it his duty to escape?. . .If we value the freedom of mind and soul, if we’re partisans of liberty, then it’s our plain duty to escape, and to take as many people with us as we can!”
― J.R.R. Tolkien

Do not use this money to pile up needless junk you don’t need. Use it to build your catapult. The one which will launch you over the walls of the corporate prison. Money gives you leverage. Build enough leverage, and you can pretty much do whatever you want all the time.