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Before I begin, I must state clearly and emphatically that Interest is H-A-R-A-M to give or take. Indulging in interest based transactions will have a devastating impact on your spirtual life and you will b e deprived on the blessings of Allah Ta'la in your lives so S-T-O-P as soon as possible. In fact, make this a priority.
This is just an explanation on how things work in today's economic systems.
US Federal Reserve, Bank of England, European Central Bank
The world economy needs you to SPEND & INVEST and not hoard your money because money generates money. If someone begins to hoard money (and takes it out of circulation) then the world economy suffers.
Islam achieves this by 4 means:
THEN and this is critical, that money is circulated back into the hands of people who are less blessed. In other words, the flow of the money is from Rich to the Poor.
The Non-Muslim economy also needs to rely on circulation of money so it gives you loans to spend on:
In both of these scenarios, the money is flowing from Poor to the Rich. In an Interest based system, your car, your house, your holiday are all financed (i.e. you spend what you don't have) and you pay Interests so banks get richer when you spend. The banks build a surplus which is called a "Reserve". The Government encourages the banks to build a "Reserve" and if their "Reserve" gets bigger they can lend more and get even richer.
When the economy takes a downturn, people naturally tighten their belts and do not spend. The only arrow in the quiver is to lower the Interest rates to NEAR ZERO.
Some Government back reduces the rate or cuts it to near ZERO, this means that the "Reserve" the banks build they can now lend to "less rich" banks at a lower rate. It is NEVER zero but it is cheaper to borrow.
The "less rich" banks are feeling the squeeze so they borrow money. In turn they entice Y-O-U to get the loan for the car you wanted or the house because you could not afford the Payments 6 months ago but now you can!
Here you need to understand that the money which you deposit in the bank is also used by them for profit so:
As you can clearly see that the system WILL COLLAPSE if you ask for your money BECAUSE the bank doesn't have your money, they have lent it to someone else.
That's why the Government will PASS A LAW to prevent a "run on the banks", in simple words this is just Y-O-U asking for your own money back!
India: The Looming Financial Disaster
Do you know why you get an Indian person on the phone when you call for support about anything? It is because India sold a dummy to the world about its financial structure. The greedy money hungry capitalists flocked to India because they thought India has a sound economic engine and watertight transparent measures.
It does not. India deceived the world, just like Greece deceived the EU before 2000. However, all the manipulation and lying cannot hide reality.
It is simple.
In banking terms, Non Performing Assets (NPA) is a loan upon which the (original) loan or interest payment is overdue for over 90 days. IF the economy is not sound OR the economy gets weaker then people don't have the income to pay existing loans, this is very simple to understand.
Good banks have LESS Non Performing Assets (NPA)
Bad banks have MORE Non Performing Assets (NPA)
Greece wanted to join the EU so they hid actual Non Performing Assets (NPA).
India wanted the world to invest so they lied about Non Performing Assets (NPA)
However, as Non Performing Assets (NPA) mount eventually the BANK will collapse because loans in the hundreds of millions are no longer sustainable and money is lost. India has the second biggest NPA in developed countries.
India's economy was collapsing, its banks shutting down and in came CoronaVirus (COVID-19) so convenient excuse for failing banks to ask for relief.
This cannot be undone and I am sure it will be greatly appreciated.