Fractional reserve banking allows banks to create money through lending practices. This system leads to inflation as more money is created than what is backed by reserves. Over time, inflation erodes people's purchasing power and savings. The Hadith warns against paper receipts being traded as a form of interest, which is forbidden as riba. Modern central banking practices are compared to riba as new money is continuously created through fractional reserve lending, diminishing the value of currencies over time and going against the principles prohibiting riba in Islamic teachings.

1. Fractional Reserve Banking
System and Inflation
The Oppressive Nature and
Deception of Debt-Based Economy
Presented by Dean Arif
MyBullionTrade.com
3 March 2012

2. What is Inflation?
Supply
Demand
En. Salleh Salary Price of gold/oz Qty. of gold
1970: Fresh Grad RM840/mth RM84 10 pieces
Worked for 40 years
2010: Retire as GM RM20,000/mth RM4,800 4 pieces
JUSTICE?

3. A Brief History of Paper Receipt
Souq – Open Market

4. A Brief History of Paper Receipt
Desert Caravan

5. A Brief History of Paper Receipt
Safety Deposit Boxes in Vault

6. A Brief History of Paper Receipt
Paper Receipt for Gold

7. A Brief History of Paper Receipt
• Fractional Reserve Banking (remember this!)
• Reserve Ratio: 10%

8. Hadith on Paper Receipt
From the Hadith Book of Malik's Muwatta (Business Transactions: 31.19.44):
Yahya related to me from Malik that he had heard that receipts were given
to people in the time of Marwan ibn al-Hakam for the produce of the
market at al-Jar. People bought and sold the receipts among themselves
before they took delivery of the goods. Zayd Thabit and one of the
Companions of the Messenger of Allah, may Allah bless him and grant him
peace, went to Marwan ibn al-Hakam and said, “Marwan! Do you make
usury halal?” He said, “I seek refuge with Allah! What is that?” He
said, “These receipts which people buy and sell before they take delivery
of the goods.” Marwan therefore sent a guard to follow them and to take
them from people's hands and return them to their owners.

9. Hadith on Paper Receipt
Translation:
Yahya meriwayatkan padaku dari Malik bahwa ia mendengar resit (sukukun)
dibagikan pada penduduk pada masa Marwan ibn al-Hakam untuk barang
di pasar al-Jar. Penduduk membeli dan menjual resit diantara mereka
sebelum mereka mengambil barangnya. Zayd ibn Tsabit bersama seorang
Sahabat Rasulullah s.a.w., pergi menghadap Marwan ibn al-Hakam dan
berkata, “Marwan! Apakah engkau menghalalkan Riba?” Ia
menjawab, “Naudzubillah! Apakah itu?” Ia berkata, “Resit-resit ini yang
dipergunakan penduduk untuk berjual-beli sebelum menerima
barangnya.” Marwan kemudian mengirim penjaga untuk mengikuti
mereka dan mengambilnya dari penduduk kemudian mengembalikannya
pada pemilik asalnya.

10. Modern Time Currency Creation

11. Inflation@3.5% : RM140 x (0.965)10 = RM98
Inflation@5.0% : RM140 x (0.950)10 = RM84
Inflation@10.0% : RM140 x (0.900)10 = RM49
TAX $
IRB
RM 100 Million
Treasury GOV BOND / SUKUK, 10 Years
Maturity
@ fixed 4% p.a.
Cash
CB Bond
TH
Payback
RM 140 Million AS
After 10 years
EPF
SARA 1M

12. Liability = Asset Liability = Asset Liability = Asset
RM4k: SRR RM3.8k: SRR RM3.6k: SRR
Bank M Bank I Bank C 3
RM100k: Ali RM96k: ChongAdam RM92.2k: Muthu RM88.6k: Ad
Infinitum…
TAX $
IRB
RM 100 Million
Treasury GOV BOND / SUKUK, 10 Years
Gov buys Maturity
RM100k worth 1
2 @ fixed 4% p.a.
of stationery
Cash
CB Bond
every month Fractional Reserve Banking
TH Statutory Reserve Ratio = 4%
Payback Currency creation formula
RM 140 Million AS = Base Currency  SRR
After 10 years = RM100k  0.04
EPF = RM2.5 million!!!
SARA 1M 1 2 3 = Riba!

13. Riba’ in Quran
Allah said in surah Al-Baqara (2:275): “Those who devour usury will not stand
except as stands one whom the Evil one by his touch hath driven to
madness. That is because they say: “Trade is like usury,” but Allah hath
permitted trade and forbidden usury. Those who after receiving direction
from their Lord, desist, shall be pardoned for the past; their case is for
Allah (to judge); but those who repeat (the offence) are Companions of
the fire: they will abide therein (for ever).”
Declaration of WAR on riba’, surah Al-Baqara (2:278-279): O ye who believe!
Fear Allah, and give up what remains of your demand for usury, if ye are
indeed believers. If ye do not, take notice of WAR from Allah and His
Apostle: but if ye turn back, ye shall have your capital sums: deal not
unjustly, and ye shall not be dealt unjustly.

14. Mudharat (Negative Side Effect)

15. Mudharat (Negative Side Effect)
100% Gold, the most efficient preserver of value
Al Ghazzali and Ibn Khaldun rightly asserted that Allah
SWT created gold and silver as measure of value.
IMF: 1World Central Bank
NWO: 1World Currency
Inflation = Reverse Compound Interest!
Value Decay of
Paper Currency
-98% Twilight
Zone
Decades
1971: Nixon took us off the gold standard
2012: We are HERE and
the USD and ALL Paper
Currencies are in ICU!

16. Evilution of Paper Currency
1837-1936: 420 grains = 26.95g (90% silver).

17. Evilution of Paper Currency
They took your real wealth…
…and give you this!