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.

Dinar For Commercial Solutions, Who's Afraid ...?

For this first, I offer solutions Dinar for the banking sector (especially Islamic banks) and real estate. 

  

His case study are as follows: 

  

So far, one of the biggest problems is the housing of the workers. They are difficult to buy a house in cash, while saving (in Rupiah) is not an intelligent solution to be able to buy a house because of the savings on average only about half the level of house price inflation. 

  

Solutions that somewhat helps is through the installment program, which in Islamic banking schemes generally use Murabaha or sales with a profit margin agreed between the bank and its customers. 

  

The problem is if the assumption is you wish to repay the house for Rp 200 million for 10 years for example, how much margin of profit that you will agree with your bank?. 

  

In all likelihood the bank will calculate the profit margin 'equivalent effective interest' conventional banking on the prevailing market. If in the conventional market interest rates of 18% per year, so the profit margins of Islamic banks not far from 18% per year. 

  

With a level profit margins 'equivalent effective interest rate' 18% / year, then for a home purchase USD 200 million per year you will repay the amount of Rp 3,600,000 / month. In total you will pay in 10 years is Rp 432 million. 

  

So the profit margins of Islamic banks in total within ten years is Rp 432 million - USD 200 million = USD $ 232 million or 116%. !. 

  

Fortunately, much is banking that 'sell' home to you with 116% profit margin in 10 years?. Not really, actually they are actually losing money, although the balance amount as if they were lucky - but in their real purchasing power loss. 

  

This is the result of the use of money or 'scale' is not fair, you already feel strangled by a high bank margins - but you also lose hiccup.

  

Look at the chart above when juxtaposed with the case of fair balance of all time is the Dinar. For this simulation of the accumulation of your payment into my bank pair with real price data Dinar past 10 years since 1999. 

  

The assumption you 'buy' homes from banks USD 200 million in 1999, the dinar exchange rate was Rp 305.000 / Dinar 'purchase' You are the equivalent of 655 dinars. 

  

After you finish installments is less than 10 years until this year, the total payment you $ 432 million. Because this year has been the dinar exchange rate of Rp 1,288,000 / Dinar; the accumulation of your payment amounting to Rp 432 million is merely equivalent to 335 dinars only. Indeed banks losing money instead of a profit even 320 dinars or 49% loss for your house!. 

  

That is, among others, is why from time to time the global banking system in trouble, because they are operating with 'scales' bills that are not profitable when used for muamalah anyone long term. 

  

Well how about if Murabaha transactions made in the dinar and get paid in Dinar?Notice the chart besides. 

  

'Purchase' You in 1999 the USD 200 million is equivalent to 655 dinars. You can agree with that no excessive profit margins for banks, for example 19% in 10 years!(Yeah right 10 years!) - Then you will pay to your bank a total of 780 dinars in 10 years or 6.5 dinars per month. 

  

See the difference between the graphs 1 and 2. In the first graph you 'feel' suffocated but the bank still lose; in the second graph you feel lighter and banks pay for really real benefit. 

  

How do you feel mild to pay in the Dinar?. Because in the early years of installments is only 6.5 dinars equivalent to Rp 1,985,000 / month. However if the 'purchase' in your mortgage amount the first year is USD 3,600,000, -/month. 

  

At the end of the year-end installment loan you the dinar will be greater than the amount, for example 6.5 this year your Dinar equivalent to Rp 8,372,000, - while your installment in a fixed amount of Rp 3,600,000, -/month. 

  

This difficult was it? probably not!. 

  

To be able to repay Rp 3,600,000 / month in 1999 you need to have an income of at least USD 10,800,000, -. In 10 years then chances are your income is above USD 25 million, so it probably happened rising mortgage (because of the rising dinar exchange rate) in line with the increase of your income so you do not feel heavy. 

  

Other selling points of the solution Dinar is going more and more people get home faster!, How come?. 

  

See comparison of the above installments. In Dinar, cheaper mortgage payments in the early years. 6.5 dinar equivalent of only Rp 1,985,000. This means that people with an income of about USD 6 million per month at that time was to 'buy' a house of Rp 200 million. And with the transactions required in the amount of income to Rp 10,800,000 per month minimum. 

  

So 'scales' just good for anyone, so already we ought to take race-based solutions Dinar ostensibly fairer. 

  

Fellow developers and banking; Seriously think about it ... because this could be the best opportunity for you to get a superior solution in the middle of a crisis. If you do not take advantage of this superior solution may also take advantage of your competitors first. Allaah knows best

When the crisis hit you (r Company), What You Will Do ...?

We know that the global financial crisis is not yet clear end solution. So no one wanted to damage the image because of the crisis.

But the bitter reality has begun to appear; almost every day we read news that laid-off workers, laid off employees and others.

Hopefully this does not happen to a company or yourself, but what you gonna do when that happens the other way around? when companies go bankrupt your workplace affected by the global financial crisis and you have to lose their jobs?.

Do not be trigger sad before!. if you wait in the accept-this could be the beginning of goodness for you.

First suggestion I look for prayer and remembrance book Prophet Muhammad (if you do not already have one). The most simple and straight forward is Al-Ma'tsurat collection of prayer-prayer is exemplified by Prophet Muhammad. The book was published by several publishers with various versions and sizes - choose who you comfortable.

In the Al-ma'tsurat are many beautiful prayers, beautiful to read morning and evening; the most important to combat this crisis is in the following prayer:

Allahumma innii a’udzubika minal hammi wal khazan, wa a’udzubika minal ‘adzji wal kasal, wa a’udzubika minal jubni wal bukhl, wa a’udzubika min ghalabati al-daini wa khohri al rijaal.

"Oh my God meant it to you from a sense of refuge hard and sad, and I seek refuge to You from weakness and laziness, and I seek refuge in you from cowardice and miserliness, and I seek refuge in you from the bondage of debt and the pressures of others."

While we ask for help and prayer to Him, we have to do is a genuine effort.

Realize that the 'bankruptcy' big company where you worked before may already be happening. Large companies (who broke it) a good average on the type of work or products that have passed, but not necessarily good for the work / product of the present and future.

For the present and future needs of small businesses that can move quickly and flexibly. This is your opportunity to create small businesses that can move very fast and flexible you are in the field of expertise of each.

Still have not had a business idea?; Not too worry - you do not have to start everything from scratch.

There is wisdom in Java - which should serve as the first occupation of Japan - Japan learn from this wisdom and made love for the fatherland, which then makes them highly developed after World War II - wow -! What is it?.

Some call this wisdom 4 N, some call it 3 N because two of them look alike.

The first N is namatke or business or product noticed someone else already advanced.

The second N is niteni or care while identifying character traits or business or product that has been successful. First N and N are the two that are often also combined.

Third N is nirokke or mimicking of business or product that has been successful in the market.

N fourth is nambahi or add or modify the business model or product that has been tested in the market.

If by imitating (and nambahi) only Japan can be quite advanced as now, especially if you have original ideas, then Allah willing you will have a very big chance of success - at a time when the world was crisis.

Requirement is anything to this success?; Yes back to the prayer of the above earlier.You do not need to be sad, you should not be weak and lazy, you must be brave and not stingy, you should not rely on any debt so you can be free from pressure of other people!. Allaah knows best. (Taken from training materials Entrepreneurship Center for Islamic Development / CIED).

Gold Price And Money From utopian Central Bank ...

For you and me, we generally can only add to assets by working hard and then get a salary for the work or make a profit for the entrepreneurship. Company-was such, his net asset is only increased when the company worked hard and succeeded in making a profit. Not so with the institution whose name is the central bank, they can print money out of the clouds or even completely unnecessary print it - just type a few digits on his computer - that their assets grow - hence their asset-even counting!. 

  

Want to see real proof?, Consider the graph below which shows the U.S. central bank's assets or called the Fed. At the end of 2008 when United are top of financial crisis, it suddenly jumped the Fed's assets. This asset in the form of receivables to financial institutions of American who was hit by a storm battered the crisis. So from where the Fed suddenly has a wealth (money) is so much to rescue these actions?, Yes it was printed from the clouds (in English often called printing money from thin water) or even do not need to print it at all - just type a few digits on a computer - then the market called quantitative easing with a cool name. 

  

How the hell they actually do this?. Here is a simple description of how they work. 

  

For example, the central bank of a country (in the example I use the United States alone fed him, let no one get mad at me) are concerned with inflation will hit this country, then the meal will issue bonds in countries like U.S. $ X billion. 


So these bonds-not purchased by public institutions or financial. The money that was originally there in public institutions or finance is now sucked into the central bank. That does not suck as little as U.S. $ X billion, but can be up to three times - because it is usually double their money through a bank loan process. Money bank banking money creation is the result of even the part that sucked in by the Fed when they issue debt.

  

On the contrary also happens, in situations where the threat of crisis-stricken country that is very serious and even into a recession - then the Fed doing the opposite to that above. This time they will buy the debentures in countries such as U.S. $ X billion, you know where his money?, Easy - yes from the air earlier. So the 'new money' from the clouds are pouring into the U.S. financial system and to the market. When it came to the market in number is no longer U.S. $ X billion, but many times due to the process of money creation through credit banking world that they provide. The second process is the background of the first graph above. 

  

The problem might not be worse if if money from the air can be proportional to the real economy moving by increasing the product of goods and services reflected in the increase in GDP. But it seems also not occur in the U.S. because when the Fed's assets increased more than 160% of the range of U.S. $ 850 billion before the crisis to around U.S. $ 2.3 trillion after the crisis, the country's GDP grew only in the range of 2% only!. 

  

That is what, in ensuring the Fed's Money which should encourage economic activity measured by GDP growth -? The effect is not significant. Indeed for a while managed to overcome the crisis that is reflected in a negative growth of GDP during the crisis, the positive direction after the crisis - but because GDP growth is not worth the money from the clouds are made - there arose a new problem that the threat of inflation.

  

How inflation or rising prices generally occurs as a result of the creation of money out of the clouds I wrote two years ago with the article titled The Wreck of Monetary Studies and the prosperous. Summary can be described by a formula called the equation of exchange: M x V = P x Q. M is the amount of money, V is the velocity of rotation, P is the price level and Q is the amount of goods and services. 

  

P x Q represented by GDP just as in the second graph above. When M increases dramatically as reflected by the first graph, V is relatively fixed, which means not able to boost the Q - legible from the second graph. So when in an equation on the left side increased sharply (because of M), one of the factors on the right side is relatively fixed (Q) - then one other factor on the right side would rise sharply as well - namely P or the prices or called inflation . 

  

But according to the U.S. government's official inflation data they really low?, That's according to the government because of its political interests. Fortunately for the American people because there was a grandfather who often publish data for comparison are very popular now known as the Shadow Government Statistics (SGS). According to data of this SGS, the country's inflation can be much higher than officially published by the government. Notice the comparison in the third chart below. 

When inflation occurs, there are other indicators that are very accurate - certainly more accurate than even the SGS data mentioned above - namely the development of the gold price. Consider now the gold price chart below that I give the background of the first graph above. 

  

Now you can see it very clearly, that the impact of money creation from the air by the Fed are slowly but surely overtaken by rising world gold prices until now valued in U.S. $ or the money the Fed. 

  

So how about the future?. What is clear the Fed will continue printing money out of the clouds even with a much larger number of more famous through the process with quantitative easing 2 - hence the four graphs above inshaAllah you can guess where relatively accurate about the direction of gold price movements world in the coming years. Wa Allahu knows best.

'Titanic' U.S. Dollar From Drowning, Time to Leave the Ship ...

Some people who diligently criticize my thinking on various mailing lists, assume that the American economy was represented by the U.S. dollar is too big to fail. So these days God willing we will witness the process of sinking of the U.S. $ this. 

  

This reminds me of the beginning of the movie Titanic, when the ship designer proudly declared that God would not be able to sink the Titanic - but what would happen? one trip just did not work he completed. 

  

Quantitatively we can see the process of sinking of the U.S. $ is through the graph above, which graphs last month to U.S. $ Index that measures the performance of U.S. $ against a basket of major world currencies are EUR, JPY, CAD, CHF and SEK. 

  

Why 'Titanic' is only now beginning to sink?. 

  

Besides a pile of debt that will not be paid in future generations that I have written in the writings mentioned above, now the American government began to run out the ultimate moves to save the economy as well as money. 

  

A few hours ago the Fed was forced to cut rates from 1% to 0.25% which is the lowest record in history. 

  

This step seems they do with forced to rescue the capital market and the industry began to fall. However, its negative impacts are also clearly pictured in front of the eye with a sliding falling purchasing power of U.S. $. U.S. $ Index fell about 2% after the announcement of reduction in interest rates the Fed is. 

  

With the weakening dollar, the rupiah should have improved these days, more quickly you jump into a small boat (Rupiah), this would be better. 

  

But the name is also the boat, we can not linger in a small lifeboat. Only our short term needs (less than 6 months) are quite safe in the lifeboat. 

  

For our retirement planning, school children and our old days - we need a strong boat that has proved resilient in time and the various storms that is gold or Dinar. Now look expensive, but that's the boat we need. Allaah knows best.

From Local Max To Big Max...

My writing this time I get the material Entrepreneurship Training for the employees and professionals that we have developed with the Center for Entrepreneurship Development Islamic (CIED).

Successful career of an employee or professional who can we describe the most common such as graphics in addition to the so-called graph Local Max. Employees or young professionals, ranging from point A and then a successful climb to the peak of his career at point B.

Point B is the point where someone Local Max or professional employees stuck with what he achieved, he might have become top executives or professionals who are recognized in their field. But he saw everywhere is decreasing.

Because of this decrease painful, few are willing to travel from B to C, so the majority of employees and professionals to stop at point B is.

If you are satisfied with the graphs Local Max, then you-even stop here.

But if you want to travel farther and more challenging in the future, then inevitably you have to dare to pass through point C. Point C is the point at which an employee or professional courage to decide to start something completely new, beyond the paradigm of his success so far.

Point C is also the point at which all form of health insurance 'fun', facilities, vehicles, drivers, electricity, telephone and all have been paid by our employer - all of a sudden we have to think for themselves.

For all the 'suffering' is a majority of employees and professionals who have been feeling 'a success' reluctant to take the next challenge.

For those who are willing to take it and really want optimize his age with a maximum work, then point C not a nothing. He saw Big Max graph that is not seen by the people with the graph Local Max.

People with Big Max graph is what could see, and God willing to reach point D after the C, can even reach F after E and so on.

Now you can decide for yourself, whether you are satisfied with the Local Max?, Or you are challenged to see your Big Max?.

Implementation details on Entrepreneurship Training program mentioned above.

While Still Leave U.S. Dollar Securities ...

This paper I get from the study conducted by Casey Research is then poured in the Casey Report recently. 

Revealed from this long report that during the financial crisis till now underway, the United States has made or committed to bailout the bailout of U.S. $ 8.5 trillion. This bailout involves the country's four financial institutions such as graphs, more than 61% of its own issued by the Federal Reserve. 

  

In general economic theory, this bailout should not be a problem because generally in the form of loans, equity or guarantees. Loans should be paid by the loan recipient in the end. Equity will increase government participation in various business sectors.Similarly, it should also guarantee not to cause harm to government assets - because there is no cash out of his. 

  

But the entire bailout turns out to be a major problem after it was revealed in the report above that; loans issued by (or promised) the government's bailout program was to reach U.S. $ 2.3 trillion and the average is not backed up by existing asset prices. That is more likely unpaid, than the chance paid off. 

  

Bailout in the form of equity reached U.S. $ 3.0 trillion, but this was the average equity in the bankrupt company. Javanese language is Nguyahi Segoro (give the salt in the ocean). 

  

The largest form of government guarantee which reached U.S. $ 3.2 trillion, an average of these on derivative products and other investment products that are bulging collapse - which in due course will demand a guarantee for the party giver were really bail. This means that it should not be a cash-out-Ko-Ko was finally going to be a cash-out. 

  

So how big is the real money of U.S. $ 8.5 trillion this?; Graph illustrates that the entire project in addition to great Americans throughout history - after being adjusted by a factor of inflation - if the total was only U.S. $ 8.1 trillion. 

  

World War II, for example, after adjusted for inflation "only" to burden the American U.S. $ 4.1 trillion; All NASA programs that include up to bring the Americans to the moon only need U.S. $ 0885 trillion. Vietnam War only U.S. $ 0686 trillion. 

  

What is the meaning of all these numbers?. What it means is the U.S. government has mortgaged the nation and its wealth to future generations. As long as other nations continue to give them credit - using U.S. dollars - chances are they could just survive day after day, month after month, year after year. 

  

The balloon is blown continuously, eventually will erupt as well. This is what will happen with United and with the money the U.S. dollar. 

  

Lenders (all those who still use the U.S. dollar - including me and you when traveling abroad, etc..) This will eventually also be aware that the loan is actually not deserve it.Not only because they will not be able to pay it, but they also use loans from other nations in the world to finance his pride - sometimes even to oppress the other nations!. 

  

From now on, help us save the amount the government - at least this is better than helping the American government to save money. 

  

But if our government is also following the American way - remember the adage "Master ... standing, students ... run"?, Then we also must think about the ways we save ourselves, families, communities and nations in the future ... Solutions Dinar is one of them. Allaah knows best.