Top of the 20 leaders of countries that have a focus on financial markets and world economy in Washington DC last week also called Bretton Woods II precursor
What is Bretton Woods?, Let us look backward historically.
The story begins when the Bretton Woods in July 1944 when the Americans feel has won most of World War II, so they initiated a conference in Bretton Woods, which will regulate the world financial system.
Core of the Bretton Woods agreement was originally promised the United States to support its dollar currency fully with an equivalent amount of gold. Equality follows the conversion price of gold is determined in 1934 by President Roosevelt, that is $ 35 for 1 troy ounce of gold. Other countries are following the agreement initially allowed to balance money against gold or against the dollar. With this agreement should be anyone who holds dollars easily exchange it for gold equivalent.
But the Bretton Woods agreement which was initiated by the Americans was also denied by the Americans. Slowly but surely they were spending money that exceeds the ability of its gold reserves, even unilaterally they no longer allow other currency equivalent to gold, should the dollar.
Dollar holders also can not necessarily replace it with a gold equivalent, of course this is because the United States does not have the amount of gold reserves that should be held equal to the amount of money spent - time that America only has 22% of the total gold reserves that they should have !.
Injustice is starting a protest by his own allies Amerikat namely Generale De Gaulle of France. In 1968 Degaulle mention the arbitrariness of America as a privilege to take excessive or exorbitant privilege.
Pressure and mistrust continued and allied countries continue to exchange U.S. dollar to gold. Practical when it was only Germany who continue to support the dollar and dollar exchange is not gold.
Top of the arbitrariness of America occurred in 1971 when the United States unilaterally decided to no longer associate it with the dollar gold reserves that they have - because they can not afford anymore!.
Genesis-called Nixon Shock dated August 15, 1971 is certainly shake the world because since then it's actually the U.S. dollar could no longer trusted its value until now.
In the Bretton Woods agreement had U.S. $ 35 equivalent to 1 troy ounce of gold, now or 37 years later to U.S. $ 815 to get 1 troy ounce of gold. That means the U.S. dollar at this writing is only worth 4.3% of value if the United States must fulfill its promise in the Bretton Woods Agreement was initiated
With the failure of the Bretton Woods institutions should be implementing this concept of the IMF and World Bank are also to be closed because they had failed to perform its functions.
The irony is not the case, approximately four months after the U.S. openly deny the promise in Bretton Woods, precisely on December 18, 1971 they gave birth to the so-called Smithsonian Agreement.
The agreement which was signed in Smitsonian Institute together with industrial countries called the G 10 is the one who marks the end of the era of fixed exchange rate backed up by gold, a floating exchange rate regime followed by all the IMF member countries, including Indonesia, until now.
Since 1971 is practically the entire world monetary authorities use the back of pure fiat money is money that is not backed by any gold reserves. Fiat money (from the Latin which means let it be done!, Free translation into his language Jakarta child less is more "emangnye gue pikirin....") is the money made from items that are not worth the money, can be paper, accounting records alone (accounting entry) in the bank, or even just binary bits in computer memory. Because their home is not valued, then forced to be recognized its value - then this fiat money value and its validity is determined by the authorities in a country - therefore also be a valid payment (legal tender) in trade, debt payment etc..
The failed system would be revived by economists and some state leaders. My own pessimism when the Bretton Woods II will be realized. If after all this to happen, I believe the Bretton Woods II will repeat its failure just like the first.
Why am I so sure, that if ever there was a definite failure of the Bretton Woods II?. This belief arises not because we have a valid news sources throughout the ages. Who is preaching also is well-acquainted. What's enactment was inevitable.
We are told by the All-Knowing; for entrusting us cautious of our financial affairs at the Jews because they are more likely than those who are traitors who do not, they even consider us as a people who treasure our umi they can be taken unilaterally. Verse as follows:
"Among the People of the Book there are people that if you entrust to him a lot of treasure, return to thee; and among them there are people that if you entrust him one Dinar, did not return to you, unless you always bill. That is because they say: "There is no sin for us against those umi". They tell a lie against Allah while they know "(Surah 3: 75).
Nixon Shock 1971 is one proof of their betrayal of the World against their beliefs.
Other news that I've often quoted is the news that the economy is built on the basis of riba, Allah must be destroyed (Sura 2: 276).
May arise to mind you that is not the Bretton Woods use gold as a basis for printing money; Dinar also use gold as money. So what's so different?.
In Islam, money is only as tools or scales to be run in a fair muamalah - Dinar portray a fair balance it.
For the scales are still always there in the community who need it - for muamalah always be able to walk in a fair, then a series of strict Islamic rules must be obeyed by these people, among others:
· Prohibition of hoarding.
· Ban on usury.
· Ban on using gold as a place to eat and the like.
· Prohibition male use of gold jewelry.
· Encouragement for treasures are always spinning - not only on the wealthy class.
Thus allowing the system Dinar first win (and God willing one day) is not solely his dinars, but the entire justice system running.
If the present that will be done only using gold alone as a reference, but its supporting system as a whole is still very unjust - usury and speculation is still rampant - the gold alone - will not bring much change.
Despite the small likelihood that the Bretton Woods II can be realized much less be successful, in fact there are other lessons can we take from the start talking about Bretton Woods by economists and world leaders. Wisdom is the recognition of them in the act - that the gold was real money that should always be a reference. Allah knows best.
