Quantitative easing: How the New World Central Banks Printing Money

The view of Ibn Taymiyyah on how the country should have authority to print money: "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. "

If only thought Ibn Taymiyyah was used as reference by the monetary authorities and the financial world, Insha Allah the various crises that plagued the people of the whole world is not going to happen.

Due to human vanity, they are reluctant to seek clues correct - instead of learning from previous mistakes - they even buried humanity to the potential for even greater crisis.

I get some real evidence of what is done by the British government recently.

When efforts to rescue the economy by controlling interest rates has reached 0.5% - the lowest in 315 years! - Deemed not also heal the crisis there, they start looking for common (-sense-an) to polish their economies.

And the way he discovered that quantitative easing given the cool name - who impressed sophisticated, so it is not easy to understand people. What is actually quantitative easing "; following is my understanding that laymen - please Sorry to economists because I try to simplify your sophisticated science.

Quantitative easing is one way the central bank - in the UK meant the Bank of England - 'print' a large amount of 'new money' in its Balance Sheet. No need to print the report-report physical banknotes or coins it - but merely to add new numbers electronically at the central bank's balance sheet.

Once formed, then to what 'record' this money?, To buy troubled assets from the banking sector (such as housing loans), government securities etc.. In this way 'money' which was only fantasy that only typed in the balance sheets of central banks, have now entered the country's financial system.

Since each bank has an account at the central bank, the central bank also did not bother to physically move the money (which does not exist physically) into these banks, all only on computer data entry.

In the UK there is a committee called The Bank's Monetary Policy Committee has the authority to print the 'extra money' in these fantasies. Currently this committee has permission to add a 'money' at the central bank's balance sheet until a 150 billion pound sterling or U.S. $ 207 billion!. From the allowable limit, the current committee has been using half of the existing quota.

So what the implications for the British people?; While this solution may not be able to save them from the crisis - the obvious is the opposite of the value of money in the community will continue to fall - this is prohibited by Ibn Taymiyyah mentioned above.

Advanced techniques in dealing with such crises, most likely carried out by other countries as well; therefore the people or through their representatives should have access to policy-makers of public policy so that there is an understanding and overseeing them.

If we are not sure about this oversight, people can still be done to secure the results of his efforts is to maintain the physical assets or money with intrinsic value that could be Dinar, Dirham, gardens, livestock etc.. Allaah knows best.

Sure That It's Way Out There, But For Whom?

"... He who fears Allah, Allah will hold for him a way out" (Sura 65:2)

 

"And give him sustenance from the direction of the never suspected-but thought ..." (Sura 65:3)

 

"... And whosoever fears Allah, Allah will make easy for him in his business." (Sura 65:4)

 

"... And whosoever fears Allah, He will erase his mistakes and will double the reward for him." (Sura 65:5)

 

In my writings, I usually do not use the word "must" because only God Almighty who can make sure something is happening or not. But because the title of this post I bring you the promise of Allah, the Exalted in Al-Qur'anul Karim, then I dare use the word "definitely" - the promise of God certainly true!.

 

It is commonplace in our everyday lives, both as individuals, households, communities until our country has a problem. And indeed to every problem, Allah Ta'ala has promised that there must be a way out. But to whom is given a way out? certainty was going way out is only for the cautious.

 

Even for the cautious, not only provided a way out, but also the provision of direction unexpectedly, the ease in all affairs, and a more exciting again is the elimination of errors and doubled its reward.

 

From the certainty of the promise of Allah Almighty, now we could introspection. If we (as a person until as a nation) have a problem that has accumulated - that seemed to tip its completion is not clear, so we need to ask ourselves - is whether we be the ones who fear Allah?.

 

Definition of piety is the fear of Allah Almighty be accompanied obedience in carrying out His commands and stay away from any ban.

 

Take the example of our great state. Our economic system is still usury and even have no intention to abolish the usury of the financial system of this country, then how do we as a nation which claimed to be cautious? Ban even the threat of Allah and His Messenger will be fought not only in thought? (Surah 2: 275-279).

 

By naked eye only if we can not claim to be the nation who fear Allah, then who can help us out of all the problems that haunt this country as the financial crisis, loss of employment, the number of poor people etc?

 

Then if the promise of God concerning the way out the above do not apply to this nation, then who can provide a way out other than Allah?.

 

Because of the complexity of this nation's problems, and missed him the questions above, then what can we do?.

 

What can we do, from ourselves, our families, our environment and so on. which according to our ability to get started. In the left usury at all for example, there is a valid system of microfinance operations in the country and can be fully managed in sharia that is Baitul Maal wat Tamwil (BMT).

 

I tend to promote this BMT solution for financial people, not only to overcome the problem of economic capital's people to be able to produce competitively, but it could be to manage the needs of people such as emergency fund etc healthcare loans.

 

For the middle though, if there is such a sick family disaster and require large funds - currently there is arguably not an appropriate solution in this country.

 

New insurance cover only a small group of people - so still not be a solution, what if there is a family we are sick and need a big budget?. One of two million may still be assisted by fellow members of the family, ten - twenty million may already have to sell something, what if these needs hundreds of millions? naudzu billahi min dzalik.

 

But like the title of this paper, there must be some way out - if we can achieve the degree of piety!.

 

Our devotion is the key to all kinds of solutions we need today.

 

On the basis of a strong desire to be able to achieve this degree of piety, and with piety is expected, among others, we can overcome all the problems that exist in plain sight - as well as pardon and reward, then we currently along with a number of people in our neighborhood prepare a Cooperative BMT with Muttaqiin Daarul name.

 

BMT cooperative legal entity we select for membership is open and legally allowed to manage public funds (members), even including managing health fund - after obtaining permission management of Managed Care (Community Health Maintenance Assurance) from the Ministry of Health.

 

Terms of simple membership, in addition to Islam ... at least he's the candidate must have a genuine intention to be the cautious. If you still smoke, leave the cigarettes. If still devour usury, riba leave. If you do not pray (for men) began to pray, if not Muslim dress for women, Muslim women began to dress and so on.; That could indicate piety.

 

Why are we Important terms piety?; Yes because of the promise of Allah Ta'ala mentioned above; his way out of certainty, the source of sustenance that does not alleged suspect, ease of affairs, forgiveness and a reward is only valid for the cautious?. So it is precisely this organization we named Daarul Muttaqiin - a place to stay for those who fear Allah, is essentially the following paragraph;

 

And it is said unto those who ward off: "What has been revealed by your Lord?" They said: "(Allah has) good." People who do good in this world gets (retaliation) is good.And the real abode of the Hereafter is better and that's the best place for the cautious.(Sura 16:30).