WorldFutures.info - Thinker - Islamic World: Wither a Muslim Gold Standard?

Home

Dzul g's Without Prejudice

Islamic World: Wither a Muslim Gold Standard?

World Futures Online

Islamic Politics

Islamic World: Wither a Muslim Gold Standard?

Written by Kazi Mahmood
Saturday, 25 October 2008
Additional Story Under the Islamic economic system, disputes are settled on the basis of ‘truthfulness’. The truth as it is has greater importance in the Islamic system overall and violating the truth, refusing to reveal the truth of a given disputable situation can lead to the shameful punishment of the liar. Islam is based on truth and the lies of the people are punishable. Telling the truth to the judges under the Islamic system is the essence of one’s Islamic faith. Read More >> The last few times we heard of the Muslim world using Gold to replace currency was during the time of Prime Minister Tun Mahathir's reign. He was sure and certain that Gold cold bring the downfall of the paper money era. Since then, the idea fizzled amid a few attempts at promoting Gold itself as a currency and as a means to make payments internationally. The business of gold minting in Malaysia, which started with a few companies minting gold for sale locally, went bust. A type of Gold Dinar from UK One wonders how doing business with gold can go bust but it is a reality in Malaysia since the people involved in the business were after the quick profit, not after the long haul of becoming rich and solid after years of patience and perseverance. Though it is relevant to sell gold coins, it must be done with much publicity and the right approach. Trying to impose gold as the currency to be carried around does not work in the modern age. People need cards, gold cards that can help carry thousands of dollars around like in credit cards. We are in the age of the digital money too, and the gold coins providers could shift their businesses more into the cyberspace. Now what about the gold as Islamic currency? During that period, writing for Islamonline.net, I suggested that we use gold as the standard, not as the currency necessarily and that this will mean backing the currency we use with pure, existing gold stocks. This idea did not take up since it does not bring ready, quick bucks to any of the would be investors in this business. Now let me tell you about the US. The much hated and much criticized US governments over the years did one right thing. They used gold as the standard and created a unique type of gold currency investment. This gold currency investment sores in price after gold prices rise. The profit can be huge and dramatically turn the investments into windfall gains, unexpected and much wanted. How do they do it? Everybody knows that gold is a safe investment in times of economic chaos--that's why the U.S. mint recently ran out of gold bullion coins to sell to investors (source: The Los Angeles Times). The US print money, paper money, to pay for its follies and yet the more it prints, the better it is for Gold prices. In that case, you do not need to own gold itself to earn the benefits of the current US policies. What you need is follow the price of gold on the market and invest in gold currencies that exists for decades in the US. What about the Islamic world? What the Mahathir followers in the gold coins business failed to understand is how to use a gold standard system to back the Muslim world's currencies. What the US did was to back their currency with gold standards = the US remains one of the major gold hoarding nations on earth. Simply follow the US principle and integrate gold in the modern currency system by backing one's entire currencies on gold would have created support for gold currency standards but no one will do that since there is no 'profit' to be made by 'brokers'. That is the real problem faced in the Muslim world and it has escaped the promoters of gold currencies in countries like Malaysia. The question is will there be a gold standard for the Muslim world? There can be such a standard only if the Arab world with the Asians and Africans in the Organization of Islamic Conference (OIC) pushes for gold to become the standard currency to be used to back the existing paper money. Its a long shot and it may not see the light not with this generation of Muslims anyway. Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Name Email Website Title Comment Write the displayed characters Powered by Azrul's Jom Comment
Last Updated ( Saturday, 25 October 2008 )

< Prev		Next >

[ Back ]

More Headlines

1/10

Zionist crimes at its worst

The article below is the reflection of a writer who contributed to WorldFutures and other web based publications. He wishes to remain as 'Anonymous' for this article. The article is about Zionism and the reason why it is attacking Gaza. This is his own opinion and we welcome it fully.

Latest

Tunnels: the secret weapon for Hamas

Israel's ground offensive is reaching a critical stage where its forces may soon have to face Hamas fighters on their chosen killing ground, the narrow, winding alleyways of Gaza City.

Newsflash

After oil, a gold mania

A gold mania could happen.

Here's why... Gold manias begin when investors flee real estate, currencies, bonds, and stocks because their prospects are so bleak. We're close to that right now.

Additional Items

Paid Writers wanted by World Futures World Futures is looking for talented writers who can write sound analysis regarding the Asean, OIC and NAM. Also looking for columnists to write on a monthly basis on subjects that touches the organizations above with their relations to the rest of the world, the US, China, Russia and with the Islam in particular.

For more information and guidelines on how to write for World Futures, please send an email to our editor at the following address:

Writers Wanted

Immediate topics of interest:

1. Israel and Palestine peace deal and the Obama campaign

2. The US and its diplomatic efforts towards Iran’s nuclear programme

3. The Asean and Human rights

911

Nato, Terrorism and the Wretched War

Dick Cheney, still the Vice-President, said the other day that he did not know whether Osama Bin Laden (OBL) was alive or dead. This would be like slapping his boss who had committed in his Texan style that he would bring that mythical character ’dead or alive’ before his people.

MiddleEast Conflict

Burlesque Obama supports Israeli attack on Gaza

The true story is like this then: The Jews were helped into stealing the Arab lands in Palestine and the Arabs, lost in perspective, are now firing missiles into the cozy homes built by the Jews in Israel. The robbers are frustrated with this constant attack by the Palestinians, the true owners of the land, and they hired thugs disguised into mercenaries to invade the land where the owners are now camping.

Islam

Pilgrimage for Purification and Integration And the Hadith records: إن الله قد فرض عليكم الحج فحجوا (رواه مسلم) Allah has enjoined the Haj on you, so perform Haj. (from Muslim).

THE Haj has since become incumbent upon all Muslims provided they are healthy, sane, mature, and un-indebted, endangered neither by war nor epidemic, and have the means both to make the journey and to support any dependents left behind.

Features

Obama will lose Muslim supporters

Name: Asir Husain Kazi

Age: 11

School: SKTK - Ampang

True Muslim supporters will abandon President Barack Obama. This is because, as you know, the stupid Obama is supporting the Israeli attack on Gaza. What happened to Obama huh? If I could, I would buy a first class ticket to the U.S., and crack Mr. Obama up and down for siding with Israel against Palestine.

Civilization

Another example of American criminality

LAHORE, Pakistan — When Muhammad Saad Iqbal arrived home here in August after more than six years in American custody, including five at the military prison at Guantánamo Bay, Cuba, he had difficulty walking, his left ear was severely infected, and he was dependent on a cocktail of antibiotics and antidepressants.

Islamic World

Professor Yahya and the OIC Sec Gen: A Challenging debate part 2

This is the part 2 of the critical analysis of the speech by the OIC Secretary General E. Ihsanoglu on the occasion of the celebration of the 60th anniversary of the Universal Declaration of Human Rights. A real challenging debate launched by Professor Yahya to which we hope the OIC and its Sec. Gen. would willingly participate!

Late News Items

UK: Government endorses sharia

By Steve Doughty
Last updated at 12:09 AM on 25th October 2008

Islamic courts have been cleared to deal with family and divorce disputes.

Editor Notes

Gaza: Beside the facts we find Muslim derision

Gaza represents the future of Israeli-Palestinian relationship, that is a strong government popularly backed by Gazans against a weakening, morally corrupt yet greedy Israel. It also represents the current decay and rot in the Muslim world.

Analysis

Russia want stronger SCO Russian President to visit Uzbekistan on 22-23 January

At a meeting with the Russian head of state the president of Uzbekistan made a proposal to unite the

Collective Security Treaty Organisation (CSTO) and Eurasian Economic Community (EurAsEC) in order "to

create a powerful organisation" on their base.

West\'s wars against Muslims

NATO and the road to Afghanistan via POTI

The US is working on the idea of ferrying cargo for Afghanistan via the Black Sea to the port of Poti in Georgia and then dispatching it through the territories of Georgia, Azerbaijan, Kazakhstan and Uzbekistan. A branch line could also go from Georgia via Azerbaijan to the Turkmen-Afghan border.

west wars

South Ossetia: A monumental miscalculation

We publish this opinion article from the Monday Morning newspaper published in Beirut, Lebanon. Article is written by Gwynne Dyer.

Mindanao Peace is almost there

Viewing

Healing Therapy: Bio Magnetic Bracelet

My Thoughts

Freedom of Religion

Wed, 12/31/2008 10:50 AM | Reader's Forum - The Jakarta Post

I would like to comment on the article titled "Religious freedom, tolerance in jeopardy", (The Jakarta Post, Dec. 24).

Asia Confidential

Will Obama support Anwar Ibrahim all out?

The Malaysian government is one of the first foreign regimes to have quickly congratulated Barack Husein Obama on his massive victory in the Presidential polls but their message to the newly elected President of the United States is not what the Malaysians think it is.