Money is the missing link in designing a dynamic post fossil fuel economy. Creating money as interest bearing debt builds in a growth imperative. Dual currencies in history can be repeated with success now.
How to survive the Global Financial and Ecological CrisesSustento
Â
A presentation on how to survive the current crises of finance and ecosystem. They are both highly correlated with finance providing the basis for ecosystem exploitation. I propose that we move to re-alaign the financial system to provide stable money and appropriately priced ecosystem goods and services. I argue these are both necessary for a sustainable economy.
Aquinum's razor a theory of economics what is the relationship of money to ...mansoor114
Â
This article discusses the relationship between Modern Money as described by Modern Monetary Theory (MMT) and real goods and services production and creation.
Essay on Time Value Of Money
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This is a presentation I made to help explain the economic situation to my friends and family. The dollar is in serious trouble and I'm trying to warn people. The most prominent person with this same viewpoint is Peter Schiff. Good luck everyone.
Meltdown presentation atca full master Mike HaywardEd Dodds
Â
Mike Hayward: With the help of DK, I have redrafted my Meltdown presentation to be suitable for an International Audience and it is attached below. I have already given this talk at several UK universities with more to come. It is designed multidisciplinary audiences so it is not too technical and is richly illustrated. Please feel free to use and adapt the presentation to suit your own needs and viewpoint. My name is not mentioned in the presentation. The subject is too important to claim authorship or credit.
Summary...... The global debt mountain, peak oil, population growth, resource depletion, population growth, the pension time bomb and climate change are all interconnected.
Meltdown did not occur in October 2008, but we were within 4 hours of it happening. It has only been deferred. Remember, only 3 dozen economists correctly predicted the 2008 global financial crisis, out of a profession of 20,000 members. Not one of the World politicians and Central Bankers saw the crisis coming, but all of them claim to know the remedy. The reasons for the 2008 crash have not gone away. The US housing market is still in freefall and US and European Banks are becoming increasingly insolvent, although they won't admit it. Economic growth will be stifled by rising oil prices. The bailouts are not working. World Politicians, Bankers and Economists are trying to maintain the status quo but they are losing control. Fundamentally, the real systemic causes of the crisis are rarely discussed with transparency and have not been addressed. Fractional Reserve Banking and universal public ignorance of banking practices are the cause of all the our global problems.
The collapse will happen within the next couple of years. The Eurozone or USA will most probably be the epicentre. The interconnectivity of the financial system means we will all be affected. What happens next after the collapse is impossible to predict. History is replete with examples but not on a Global scale. Massive political unrest will prevail. There will be a rise in popularity of extreme left and right political parties.
Presentation for League of Women Voters of Central, PA (10/17/17)Colleen LaRose
Â
Looking forward to speaking to the League of Women Voters in Central, PA on Tuesday October 17th from noon to 1pm at La Primavera restaurant in Lewisburg, PA
I will also be on the radio in the morning on radio station WKOK at 7:10am and 7:40am If you are in the region...stop by or listen!
This presentation is the start of a national dialogue on the US economy....why the economy is in the mess it is in and what we can do on the local/regional level to impact the national economy.
If you would like me to help you start this important dialogue in your region, contact me at colleen@nereta.org
Money is the missing link in designing a dynamic post fossil fuel economy. Creating money as interest bearing debt builds in a growth imperative. Dual currencies in history can be repeated with success now.
How to survive the Global Financial and Ecological CrisesSustento
Â
A presentation on how to survive the current crises of finance and ecosystem. They are both highly correlated with finance providing the basis for ecosystem exploitation. I propose that we move to re-alaign the financial system to provide stable money and appropriately priced ecosystem goods and services. I argue these are both necessary for a sustainable economy.
Aquinum's razor a theory of economics what is the relationship of money to ...mansoor114
Â
This article discusses the relationship between Modern Money as described by Modern Monetary Theory (MMT) and real goods and services production and creation.
Essay on Time Value Of Money
Summary of Money as Debt Essay
Money Has A Major Impact On Society Essay
Definition Essay About Money
History Of Money Essay
Philosophy of Money Essay
Money and Banking Essay
Essay Good Money Management
What is Economics? Essay
Essay about History of Money
Examples Of Easy Ways To Save Money Essay
Money And Inequality In Society
Money And Happiness Essay
Having Money and Its Pros and Cons
What Is The Love Of Money Essay
The Future of Our Money Essay examples
Money Is Life Essay
money Essay
Essay On Money Market
This is a presentation I made to help explain the economic situation to my friends and family. The dollar is in serious trouble and I'm trying to warn people. The most prominent person with this same viewpoint is Peter Schiff. Good luck everyone.
Meltdown presentation atca full master Mike HaywardEd Dodds
Â
Mike Hayward: With the help of DK, I have redrafted my Meltdown presentation to be suitable for an International Audience and it is attached below. I have already given this talk at several UK universities with more to come. It is designed multidisciplinary audiences so it is not too technical and is richly illustrated. Please feel free to use and adapt the presentation to suit your own needs and viewpoint. My name is not mentioned in the presentation. The subject is too important to claim authorship or credit.
Summary...... The global debt mountain, peak oil, population growth, resource depletion, population growth, the pension time bomb and climate change are all interconnected.
Meltdown did not occur in October 2008, but we were within 4 hours of it happening. It has only been deferred. Remember, only 3 dozen economists correctly predicted the 2008 global financial crisis, out of a profession of 20,000 members. Not one of the World politicians and Central Bankers saw the crisis coming, but all of them claim to know the remedy. The reasons for the 2008 crash have not gone away. The US housing market is still in freefall and US and European Banks are becoming increasingly insolvent, although they won't admit it. Economic growth will be stifled by rising oil prices. The bailouts are not working. World Politicians, Bankers and Economists are trying to maintain the status quo but they are losing control. Fundamentally, the real systemic causes of the crisis are rarely discussed with transparency and have not been addressed. Fractional Reserve Banking and universal public ignorance of banking practices are the cause of all the our global problems.
The collapse will happen within the next couple of years. The Eurozone or USA will most probably be the epicentre. The interconnectivity of the financial system means we will all be affected. What happens next after the collapse is impossible to predict. History is replete with examples but not on a Global scale. Massive political unrest will prevail. There will be a rise in popularity of extreme left and right political parties.
Presentation for League of Women Voters of Central, PA (10/17/17)Colleen LaRose
Â
Looking forward to speaking to the League of Women Voters in Central, PA on Tuesday October 17th from noon to 1pm at La Primavera restaurant in Lewisburg, PA
I will also be on the radio in the morning on radio station WKOK at 7:10am and 7:40am If you are in the region...stop by or listen!
This presentation is the start of a national dialogue on the US economy....why the economy is in the mess it is in and what we can do on the local/regional level to impact the national economy.
If you would like me to help you start this important dialogue in your region, contact me at colleen@nereta.org
Toxic systems are everywhere around us and they can be easily identified with simple math. This presentation features illustrative diagrams that explain the difference between healthy economics and unhealthy money systems (even ones that sound like they help people). At the end of the presentation you will be able to easily and quickly identify the toxic systems, understand how they impact your community and environment and know how to avoid them.
This is a presentation I made to help explain the current economic situation in the United States and why dollar inflation is inevitable. Attempts to stop inflation are only making it worse. I hope this helps you.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
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http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasnât one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
A Strategic Approach: GenAI in EducationPeter Windle
Â
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
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Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The Roman Empire A Historical Colossus.pdfkaushalkr1407
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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesarâs dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empireâs birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empireâs society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
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Francesca Gottschalk from the OECDâs Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Operation âBlue Starâ is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Embracing GenAI - A Strategic ImperativePeter Windle
Â
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
2. What is Money?
Money Wealth
Vs.
The Question is: Can we put the sign of equality between these two things?
The Answer: and Yes and No!
3. The Essential Nature of Money
âAn information system we use to deploy human effortsâ
(Michael Linton)
âŠThink of the market economy as a game of put-and-take.
Each player takes goods and services from the market, and
each player puts goods and services into the marketâŠ
4. The Essential Nature of Money
âAn information system we use to deploy human effortsâ
(Michael Linton)
$$$.$$ $,$$$.$$
$$,$$$.$$
$$$.$$
$$$.$$
Money is really just a way of keeping scoreâŠ
âŠan accounting system.
6. TRANSACTION RM
1 En Ali supplies vegetables to Hotel 1000
2 En Chong needs to pay his sonâs tuition fee 1000
3 The School had organized a seminar in the Hotel 1000
4 En Chong renovated En Abuâs office 1000
5 En Abu repaired En Aliâs tractor 1000
En. Abu Mr. Chong En. Ali
A small community of tradersâŠ
7. CLAIMS
A = L + (Rev â Ex)
+ â â + â +
1,000 1,000
1,000 1,000
CLAIMS
A = L + (Rev â Ex)
+ â â + â +
1,000 1,000
1,000 1,000
CLAIMS
A = L + (Rev â Ex)
+ â â + â +
1,000 1,000
1,000 1,000
CLAIMS
A = L + (Rev â Ex)
+ â â + â +
1,000 1,000
1,000 1,000
CLAIMS
A = L + (Rev â Ex)
+ â â + â +
1,000 1,000
1,000 1,000
8. SOLD GOODS/SERVISES TO Total
Cr.School Hotel Ali Abu Chong
School 1,000 1,000
Hotel 1,000 1,000
Ali 1,000 1,000
Abu 1,000 1,000
Chong 1,000 1,000
Total Dr. 1,000 1,000 1,000 1,000 1,000 5,000
NETTING EQUITY/MUQASSAH
Total Cr. Total Dr. Net
School 1,000 1,000 0
Hotel 1,000 1,000 0
Ali 1,000 1,000 0
Abu 1,000 1,000 0
Chong 1,000 1,000 0
5,000 5,000 0
For each person all their debts are settled:
10. SOLD GOODS/SERVISES TO Total
Cr.School Hotel Ali Abu Chong
School 500 1,000 500 2,000
Hotel 3,000 1,000 4,000
Ali 300 500 800
Abu 1,000 600 200 1,800
Chong 1,500 800 2,300
Total Dr. 3,300 3,000 1,100 1,800 1,700 10,900
NETTING EQUITY/MUQASSAH
Total Cr. Total Dr. Net
School 2,000 3,300 (1,300)
Hotel 4,000 3,000 1,000
Ali 800 1,100 (300)
Abu 1,800 1,800 0
Chong 2,300 1,700 600
10,900 10,900 0
In this kind of system total credit will be ALWAYS equal to total debit.
So aggregate debt will be equal zero!
Unlike in the system where bank creates money through fractional reserve and interest. There
aggregate debt keeps on escalating and can never be settled in total.
12. 12
Gigantic stone donuts served as money.
They were so huge that once they are brought to the island
no one even moves them â the islanders will just
remembered who owns which one.
In fact, once, when a crew was trying to bring some stones to
the island the storm hit the ship and it sunk together with the
stones. The crew survived though and came back to island
and told people what happened... and guess what?
They said: âit is ok, we still can use them for the trade!â...
13. an information system we use to deploy
human effort...â
â
So for centuries the stones remained under the
sea and yet it belonged to someone and was kept
being used for trade even no one ever saw it â the
most advanced monetary system before the
modern era đ!
14. Money is simply the value bywhich
goods are exchanged and not the value for
which goods are exchangedâŠ
â
âJohn Lawâs
âEssay on a Land Bankâ (1704)
16. đŽ Ă đœ = đ· Ă đMoney
stock
Velocity
Aggregate
Price
Real things
(GDP)
Everything is in this Simple Equation:
17. đŽ Ă đœ = đ· Ă đMoney
stock
Velocity
Aggregate
Price
Real things
(GDP)
â
This side of the equation is
the real things/wealth
And this is only information
about this
So they are not the same!
But both side MUST grow step in step (in equal proportion) with each other!!!
18. đŽ Ă đœ = đ· Ă đ
In our current monetary systemâŠ
This element grows
out of ANY proportion with
anything real
Money
stock
Velocity
Aggregate
Price
Real things
(GDP)
19. Amount of Existing Money Supply Created by Commercial Banks
through Fractional Reserve Banking System
Estimated using Broad Money (M3) less Currency in Circulation (M0)
Source: Computed using data from Bank Negara Malaysia statistics
13,513,000,000
213,513,000,000
413,513,000,000
613,513,000,000
813,513,000,000
1,013,513,000,000
1,213,513,000,000
1,413,513,000,000
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
RinggitMalaysia
M3 - M0
M0
Exponential Growth:
A graph for any other country will look pretty much similar
20. đŽ Ă đœ = đ· Ă đ
In our current monetary systemâŠ
» Problem: If M grows out of proportion then on the other side of the
equation two possibilities:
1. Y cannot keep pace with the growth (because Y, the GDP, indeed
physically cannot grow fast) â P (prices) must absorb excess
money stock
2. If we want P to be constant then we must constantly push for the
GDP growth
» In our current systems, we experiencing both of the above (1 and 2)!
» And both, and 1 and 2, have devastating effects on our societyâŠ
Money
stock
Velocity
Aggregate
Price
Real things
(GDP)
23. $20/
oz
$20/
oz
» A fiat currency is money that has no intrinsic value of its own. It
is not redeemable for gold, or anything of value for that matter.
» It takes predominantly two forms â currency notes and coins
(state-issued money) and accounting money such as cheques
and electronic money (created by commercial banks through
loans).
Fiat Money
24. Fiat Money: Seigniorage
» Fiat money has seigniorage, i.e. face value that is more than the
intrinsic value.
» For example assume that the cost of printing a one-ringgit note is 10
sen. Then the seigniorage of the note is 90 sen
» The seigniorage is the benefit enjoyed by the first user
of the note. It is also the advantage enjoyed by
counterfeiters.
» This seigniorage has numerous socio-
economic-political and environmental
implications as it is nothing but
profound riba.
25. Abu Said al-Khudri reported Allahâs Messenger
s.a.w. as saying: Gold is to be paid for by gold,
silver by silver, wheat by wheat, barley by
barley, dates by dates and salt by salt, like for
like, payment being made on the spot. If
anyone gives more or asks more he has
dealt in riba. The receiver and giver are
equally guilty.
â
Sahih Muslim
â
27. Interest requires
endless economic
growth even when
actual standards of
living remain
constant
1 đŽ Ă đœ = đ· Ă đ
»The interest requirement itself does not exist
in the form of money yet. Hence, total debt
(principle plus interest) is not repayable in
aggregate.
»The current monetary system can therefore be
sustained only in a dynamic fashion by
creating more and more money. This is done
primarily by creating new debt that gets into the
economy as additional money.
»Notice, if we want P = const, Y should
continuously grow.
Interest and Its Effects on Economy
28. Interest and Its Effects on Economy
Interest encourages
unhealthy
competition among
participants in the
economy
2 Money = Debt
Private Sector Debt
Government Debt
Due to interest charges, total debt is not repayable in aggregate because interest
payable does not exist in money form. Default/Financial Distress therefore caused by the
mere design of the system.
Micro-level: Competition for money
»Business world becomes increasingly competitive
»Some are able to service debt, some are sure to default
Rescheduling of Loan?
Additional Money = Debt
Indebtedness grows.
Confiscation of Real Wealth
Yes No
There is a max limit to debt level that
can be borne by firms/government.
Further rescheduling of debt is not
possible
Debt Default
Destruction of Money
Banking Crises
Economic Problems
Political Turmoil
29. Interest and Its Effects on Economy
Interest
concentrates
wealth in the hands
of a small minority by
taxing the majority.
3 » Banks are generally in the hands of a minority
(who provide the âfinancial servicesâ), while the
rest of the nation work in the real sector
producing goods and services.
» Since the banks create most of the money for a
nation in the form of debt even a small interest
charge is a charge on almost the entire
economic output. In dollar terms this is likely to
be huge.
» Being wealthy, this minority group is likely to
have a low marginal propensity to consume.
Therefore, money and wealth would tend to
concentrate in their hands, without circulation in
the economy.
30. 1. Amplified business cycles (continuous financial crises).
2. Disparity in income distribution and creation of poverty
3. Need to control prices of basic necessities
4. Drastic effects on housing sector
5. Prices of controlled goods grow gradually
6. Effects of price control on agriculture (agriculture is not attractive
anymore)
7. Effects on society (women/children have to work)
8. Effects on environment
9. Threat to sovereignty
10. Provides fertile ground for speculation, manipulation and arbitrage
A Whole Host of Socio-Economic Implications
To list just fewâŠ
31. 1.fiat money
2.fractional reserve requirements
3.interest rates
đŽ â đ· Ă đ
â = â =
M Ă V = P Ă Y
After full employment and the reach of potential GDP
(when Y cannot grow any more), asset price bubbles
develop in particularly the properties and stock market, i.e.
sectors that enjoy easy bank credit.
At a point in time, absurd price levels in those
sectors, particularly the stock market would prompt
investors, both individuals and corporations to
reevaluate and adjust their portfolios. This portfolio
adjustment brings about sharp drop in stock prices,
property prices and ultimately the aggregate price
level.
Unemployment â
NPLs destroy the
money supply through a
multiplier effect
Businesses may
start retrenching
workers to save
cashflow for debt
service. This
transfers what was
originally a problem
in the financial sector
to the real sector of
the economy
Pâ
Unemployment
< 3%
_
Y
Pâ
Amplified Business Cycles (Continuous Financial Crises)
32. Amplified Business Cycles (Continuous Financial Crises)
đŽ Ă đœ = đ· Ă đ
In the aftermath of a financial crisis Y has a lot of slack capacity. This is because
a lot of real wealth has been destroyed in the process â a lot of businesses
slashed their workforce and reduced production⊠â slack capacity is available
and Y can start absorbing growth of money stock again once it starts pumping in
again.
And the whole dynamic will repeat again and again and again! That is why we
are having crises periodically and continuously.
Money
stock
Velocity
Aggregate
Price
Real things
(GDP)
33. Disparity in Income Distribution and Auto-Creation of Poverty
» Aggregate price level increase vs income level increase: low-income group
would find the rise in aggregate price level burdensome, particularly if the
prices of basic necessities also rise. Their income grows slower than the
general inflation (aggregate price level).
» Those with very low or no income growth would be seriously affected such
that their purchasing power could fall below subsistence level, pushing them
into absolute poverty levels.
» Plus interest rate that concentrates wealth in the hands of minority by taxing
the majority.
» Therefore, in the present fiat money interest-based monetary system poverty
is automatically and continuously created!
34. Need to Control Prices of Basic Necessities
» Because there is constant prices growth (inflation) it is common for prices of
staple items like rice, sugar, flour, meat and oil be controlled. If people (especially
lower income group) find the price of their lunch increase on a frequent basis
then chances are that they might picket on the streets.
» Therefore, such controls may also be necessary for political reasons.
» Hence, if the price in one sector of the economy were controlled, then the
increasing money supply would find its way into other sectors, and cause price
increases in these sectors at a rate higher than overall average rate of inflation.
Properties and stock market are most conducive for this (people are generally
happy when the price in these sectors increase since many hold these as
investments).
» A growth in the price of housing of higher than 6.73 per cent is likely to be
burdensome on the lower income group. This is because a home is a basic
necessity that takes a large chunk of people's income.
» This would necessitate government intervention on the housing issue for the low-
income group.
35. Drastic Effect on Housing Sector
» While land is fixed in quantity, its price is likely to rise higher than the income
growth of low income group (remember that the property sector is also among
those designed to absorb the increasing money supply).
» This means in due time, housing for low income group will not be landed,
meaning that they are likely to be low-cost flats. Property developers would
respond to this by building smaller and smaller-sized homes so as to make them
"affordable".
» In certain countries, for example, the situation has come to a state where people
practically "rub shoulders" in their homes. These things suggest that in a money-
creating system people will be gradually living in flats or condominiums.
» At this juncture the banking sector comes to the "rescue"âby giving longer
durations to settle housing loans. In the 1970s the average housing loan duration
in Malaysia was about 10 to 15 years. In periods before that, loans for a period of
even less than 10 years were common. But now most banks would even go for
35-year housing loans!
36. Prices of Controlled Food Items Grow Gradually
» Government will be forced to increase prices even for
necessities in a stepwise fashion â gradually over long period of
time.
» Otherwise the producers of those
goods will feel a pinch â after all,
their purchasing power is also
gradually eroding with the ever-
growing inflation.
37. Effect of Price Control on Agriculture
» Since most of the price controls are on agricultural products, in our
money-creating economy, agriculture would become less attractive
compared to sectors that do not face such controls, like finance,
manufacturing or construction.
» Therefore people will find it less rewarding to participate or invest in
agriculture. it would not be surprising if there is a high tendency for
people to convert land allocated for agriculture into lands for other
categories, for example, construction or industrial manufacturing.
Governments are forced to subsidize to encourage agriculture.
38. Effects on Society
» The system automatically creates poverty (#2 in the list) â
» Working longer hours, few jobs, no time for family, social
activities (do we ever talk to our neighbors these days? We all
are busy chasing money)
» Women and even children are forced to work too.
» Those who are really in dire need and below the poverty line
might become criminals. Etc.
39. Effects on Environment
» Constant push for growth.
» Just like agriculture, environment can be forsaken for the prospects of higher
returns.
» For example, if the interest rate is 10 per cent, it becomes a viable business
venture to cut down trees, sell the wood and invest the money at the 10 per cent
interest rate. This is because the trees themselves do not grow at 10 per cent per
annum.
40. Threat to Sovereignty
» The banking system, apart from creating money through loans, also evaluates
loan applications and decides to whom the "created money" would be extended
out as loans.
» In such an economic system therefore, while it is the workers and businesses
who produce the real output and services, it is the banking sector that decides
who would have the purchasing power to buy those output.
» The foreign banks would be creating the money of the country while the locals
sweat to produce the real goods and services.
» With the power vested in the banks to decide who would be given the created
money in terms of loans (and hence the purchasing power), it would only be
matter of time before the banks have politicians under their control and
ultimately the country.
44. The crucial idea that we
must embrace is thatâŠ
Money must have beginning
and the end â they are created and
they must be extinguishedâŠ
45. Mr. CookMs. Drew
?Credits
» When Mr. Cook creates credits to pay Ms. Drew, he
obligates himself to accept credits from someone in the
system at some future time in payment for his own
goods or services (by making a sale in the future, he will
âredeemâ/extinguish the credits that he originally issued).
» Ultimately, we each have only one currency with which to
pay, and that is our own production.
46. Mr. CookMs. Drew
?Credits
» Ultimately money is just an information about the real
goods and services being EXCHANGED
» Therefore, if Mr. Cook, later on, does not accept credit for his
own goods/services from somebody in the system (maybe
from Ms. Drew or from somebody else) than exchange
effectively did not take place!
47. Goods/
ServicesMs. Drew
Credit
Mr. Cook
Mr. Baker Mr. Young
Ms. Zane
Credit
Credit
Credit
Credit
CreditGoods/
Services
Goods/
Services
Goods/
Services
Goods/
Services
Goods/
Services
» In a mutual credit system, the members empower themselves to do the
same thing that banks have done for years, essentially creating their own
money in the form of credit but saving the cost of interest, while
distributing the money themselves according to their own needs.
Mr. Cook
ISSUER
48. Blockchain and AI solutions totally enable
us to tally up this system to perfection and
make it mass success
49. and until we do so, we better do not
even talk about Islamic FinanceâŠ
because
50. The truth is that if the strict legal
position of Islamic law is adopted, all
transactions in paper currency [fiat
money] will become invalid.
â
âNyazee (2008)
The Concept of Riba and Islamic Banking
Advanced Legal Studies Institute, p129