Re: "All knowing"
‘Innama al-aamlo-bin-neyat’
Leaving deeper meanings aside, let me go through obvious from what I understand.
For every individual, world around us is divided into two. One on which we would get judged on judgment day and other we would not. On what we would not get judged, they are there for our test, as that influences us (individually us and people around us who experience, hear, see or heard) and thus produces reasons of our intentions, thinking, beliefs, that are all going to get judged by Allah on judgement day. We will have to answer how and why we had such thinking, beliefs, and would be shown our intentions behind our actions. We would get rewarded on our justified thinking, justified beliefs and good intentions, but would be punished on our unjustified thinking, unjustified beliefs and bad intentions ... there would be no excuses or hiding behind others whom we may have followed blindly.
[Here, justification do not mean that beliefs,thinking and intentions were right or wrong, but it means, giving valid reasons for such beliefs, thinking and intentions to be right or wrong, based on elements of judgement that Allah gave humans, and they are intelligence, logic, rationality, universal values, factual knowledge, empathy, impartiality, concept of justice, goodwill, and so on ... including pre-birth (imbedded) knowledge that Allah gave to our soul. Humans would not be able to justify their beliefs, values and thinking on judgment day by saying that they followed, as most follow what they are born with or are being told ... like Zombies, but they would have no excuses on judgment day ... (note: Allah has given imbedded knowledge to everything Allah has created, including animals, fish, birds, plants, and humans)].
So we have:
1: Events is happening around us or has happened in past, that we experience, see, hear or heard.
2: Events and result of events happening around us or has happened in past, effects our beliefs, thinking, self-interest and actions.
3: Actions that we perform intentionally or unintentionally (due to our thinking, self-interest and beliefs)
No one has control over actions or events happening around us or has happened in past as their happening is test for us, our beliefs and our thinking.
Most (if not all) events that is related to our actions happen according to our beliefs and thinking (occasionally, some actions can also happen contrary to our self-interest, beliefs and thinking), though some we do intentionally (we become responsible of it) and some unintentionally (we are not going to get judged on it). Our actions are also test for those who experienced, heard or seen it (as all are going through similar test).
Since our intention is only known to Allah, no one can judge us on our actions if it is personal matter (do not affect others). In cases where actions are personal matter, others can only judge us on our words as words portray our thinking and beliefs. If action is not personal matter and affects others then others can judge a person according to action (and that would be worldly judgement not judgment of Allah, as judgement of Allah is based on intention of that person behind the action).
Even though there are lots one can say on the issue, from what I understand, in short:
A: Humans have no control over events happening around and their own actions.
B: Humans would be judged (by Allah) on their thinking, beliefs, and intentions behind their actions.
As for Kakaballi post:
^ Answer a simple question (without aain baain shaain) :P:
Can a human being act contrary to Allah's knowledge?
Yes or no?
No ...humans cannot act contrary to Allah's knowledge.
^ I would accept that and it makes sense given God gives us free will for niyat at least.
Only that if you go by this Hadith brings down a lot of ideas that I suspect were added to religion post Sahaba period. But that is not the scope of this thread.
You are right … there is a lacuna here about ‘how free intentions could be free from will of Allah’, and your above question is also related to that lacuna ('can human act contrary to Allah's knowledge') ... but that also has obvious and valid answer that I would not like to go into here (as I know then things would become more complicated).
As far as present topic is concerned, we are talking about obvious, and that is events and actions … if they are dependent on humans or are predestined … and if they are predestined, on what we would be judged on judgement day.