Jump to content
Islamic Forum
Sign in to follow this  
Puget Sound

Where Economists Agree

Recommended Posts

Paper money is responsible for all the chaos. Barter or gold Dinar and Dirhams was best system.

 

ban paper money to save the economy.

Edited by Muhammed Shadab

Share this post


Link to post
Share on other sites
PropellerAds
Paper money is responsible for all the chaos. Barter or gold Dinar and Dirhams was best system.

 

ban paper money to save the economy.

 

There's not enough gold in the world today to handle our modern economy. And batering is just really hard and I don't want to lug around tons of stuff just to buy ice cream. Besides, paper money enables credit, which is good for consumers (provided they don't use too much of it).

Share this post


Link to post
Share on other sites

Sallam.

 

Thought I'd comment on this thread. Economics has been a passion for me for over a decade now. Before I go forward, let me give you some information on my relevant background:-

 

I hold an undergraduate degree - BSc. (Hon) in Economics from the London School of Economics. I have distinctions in a number of subjects including in Macroeconomics and Mathematics for Economists from LSE. I have also tutored these subjects. I also hold an MBA in Financial Management from a reputable American university. Until recently, I was working as a Financial Analyst for a private fund in the East Coast.

 

Being a Muslim, and having studied Economics in some depth, I have come to the conclusion that fractional reserve banking, interest and the present economic structure is exploitative and works to create an unsustainable world. Booms and busts, the oscillation of the economy are also centrally linked to this problem. The Quran guides us, in all spheres of life, and I find it most reassuring how Allah has warned us against usury, and how much it makes sense to me. If you want to learn more about the fundamental problems involved, you can look at:

 

######DOTgrandestrategyDOTCOM/2007/12/corrupt-banking-system-money-is-debt.html

 

Its long and there are five parts, but you'll learn something that would change the way you think.

 

My own thoughts on what an Islamic state's economic model would be like is incomplete, and the larger work I have temporarily given up on, but some of my thoughts are reflected here:

 

######DOTgrandestrategyDOTCOM/2007/12/452716-handbook-to-21st-century-islamic.html

 

(You'd need to scroll down to Economic System)

Share this post


Link to post
Share on other sites
Salaams peeps,

 

So money is backed by bonds? What is a bond?

 

No, the money is backed by the value that people who buy the money (every time you buy something from another ecomony you are in effect selling them your money) put on your economy.

 

So what happens to the interest the banks place on new money created?

 

What makes you think that central banks charge governments interest when they increase the money supply? The interest on bonds is paid to the people who buy the bonds. Buying a bond is effectively lending the government money.

Share this post


Link to post
Share on other sites
Paper money is responsible for all the chaos. Barter or gold Dinar and Dirhams was best system.

 

ban paper money to save the economy.

 

China has been using paper money for 1500 years, and their economy isn't doing too badly. And if 'paper money' can also include coins which don't attempt to be worth in metal what they are worth in money, 'paper money' has been around for a lot longer than that.

Share this post


Link to post
Share on other sites

By the way, Wiki says about the Bank of England;

 

The Bank of England (formally the Governor and Company of the Bank of England) is the central bank of the United Kingdom and is the model on which most modern, large central banks have been based. Since 1946 it has been a state-owned institution.[2] It was established in 1694 to act as the English Government's banker, and to this day it still acts as the banker for the UK Government. The Bank has a monopoly[3] on the issue of banknotes in England and Wales, although not in Scotland or Northern Ireland. The Bank's Monetary Policy Committee has been given devolved responsibility (sometimes called independence) for managing the monetary policy of the country. The Treasury has reserve powers to give orders to the committee "if they are required in the public interest and by extreme economic circumstances" but such orders must be endorsed by parliament within 28 days [4]

 

So that's a central bank you don't need to worry about.

Share this post


Link to post
Share on other sites

Salaams peeps,

 

What makes you think that central banks charge governments interest when they increase the money supply? The interest on bonds is paid to the people who buy the bonds. Buying a bond is effectively lending the government money.

 

What's a bond?

 

Peace

Share this post


Link to post
Share on other sites
Salaams peeps,

What's a bond?

 

Peace

 

You don't have access to google or Wikipedia?

 

A bond is basically a loan. A government bond is a government loan.

Share this post


Link to post
Share on other sites
You don't have access to google or Wikipedia?

 

A bond is basically a loan. A government bond is a government loan.

And how to improve the economy right now?

Share this post


Link to post
Share on other sites
And how to improve the economy right now?

 

No idea.

 

To be boringly honest, I don't think this is an area where unqualified people (like me and presumably like everyone else on this thread) can make any useful contribution. I don't presume to offer advice to the people making vaccines against flu, or to engineers designing bridges, or to mathmaticians doing whatever mathematicians do, so I don't see why I should offer economists advice.

Share this post


Link to post
Share on other sites

Salaams peeps,

 

You don't have access to google or Wikipedia?

 

I do.

 

A bond is basically a loan. A government bond is a government loan.

 

Which means money is created as debt.

 

Peace

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

×