November 23, 2010

Good Will Return Money Could Replace Bad Money ...?

In admit it or not, the base of all the problems that brought the world the crisis is not yet clear which ends this time is fiat money (paper money) whose value is imposed from the clouds.



Because the base of the problem is on this bill, then any solution adopted by the world's governments will not be able to provide a complete solution - while the base of the problem (paper money) is on hold.

It could be for a while this chronic disease will look better, but soon will recur again and relapsed again. See my article "Learning from the amount ..." for this.

So whether it is possible that the paper money by the perpetrators themselves are recognized as Bad Money was replaced again with real money - Good Money as Dinar and Dirham?.

The answer is very probably, the origin of the world want to study seriously a very fair solution that is rules that are created by God through His Messenger Muhammad, the fair - which we know as the Islamic Sharia. See also my previous article "Aslim Taslam ...".

Is it possible to learn from the Islamic world this problem, while Muslims who live in this era also could not clearly express the concept of the solution?. The answer again is very possible.

Centuries ago, the western world to study various sciences of the Islamic world - why not now?.

In the case of the current financial crisis for example, the explanation is on Science monetarism with the equation of exchange was triggered by David Hume (18th century) and later refined by John Stuart Mill (19th century). From these later born formula M x V = Px Q: M = Amount of Money; V = velocity Whirling; P = Price, Q = amount of goods & services.

Unfortunately they did not learn this science and its application in the complete of the clergy as well as eminent economists of the world five centuries before Islam, Ibn Taymiyyah (1263-1328).

Concerning the equation of exchange, for example; Ibn Taymiyyah defined it as follows:
"The amount of money (money that is lower than the Dinar and Dirham, such as copper) may only be printed in proportion to the number of transactions in such a way that guaranteed a fair price. Authority should not be printing money excessively harmful to society due to the destruction of the purchasing power of money already on them. "

For the Dinar and Dirham excluded from the formulation of Ibn Taymiyyah is because the object itself (gold and silver) which will limit the volume availability in the community. Naturally, Gold and Silver or Dinar and Dirham will always be money just because the volume is not controlled by the ruling.

So if the ruler of the world's doubtful fairness in controlling the volume of money, then equity prices or purchasing power can only be gained by society through the use of money and Silver or Gold Dinar and Dirham.

In the western world in the 19th century people also know her eminent economist Thomas Gresham Gresham's famous for his law. This law just put Gresham reads: "When there are two currencies (coins) which have the same nominal value, but made of materials whose value is different - it is cheaper will encourage more expensive out of circulation". From here was born the term drives out Good Money Bad Money.

Again, the Thomas Gresham is seems to be no comprehensive study of Ibn Taymiyyah about 6 centuries before, let us consider the formulation of Ibn Taymiyyah on this subject:

"... The intrinsic value of money is different (with the same nominal) will be a source of profit for those who intend evil, by swapping the filthy lucre of low intrinsic value with the filthy lucre that good intrinsic value - and then bring good money (Good Money) into the land of another and money leaving the less well (Bad Money) in the country, so that disadvantaged communities. "

That is all around us now is Bad Money and Good Money very little. Bad Money or money actually does not matter if the volume is controlled, Bad Money became the world's major disaster now because the world powers can not control the volume.
The lack power to control the volume of world rulers of Bad Money, causing injustice to society in the form of rising prices or declining purchasing power of money held by the public.

But people all over the world began to have a choice now, slowly but surely - they will vote for Good Money Bad Money in the whole world has become really bad ... bad ... bad. Allaah knows best.