Paper money? is there anything wrong with the paper money system?

[tariqa]

what is wrong with paper money?
is it Riba based?


trading a debt for a debt?

is this haram?

and if we go back to Gold
who decides the price of Gold?


should Gold have a price?
whats the price of money?

[yezeed]

I can think of 12 things wrong with the paper money system (1) It is misallocated at it's source (2) it benefits only those who provide it (banks) (3) it is not based on anything of value (4) it is kept permanently scarce to give it value (5) it is based on usury , debt and hidden liens (6) it is monopolistic (7) it is defective and disfunctional (8) it transfers wealth from the poor to the rich (9) it is inflationary (10) it destroys local economies (11) it is created out of thin air and lent at interest and (12) it is based on faith and emotion , not logic , reason , justice or law .

[MujahidAbdullah]

I think yazeed is refering to the current economic system that is employed by the world. A paper money system can in theory be islamicly acceptable as long as it is directly backed by gold. And I have no idea how the price of gold can be determined islamicly.

[marco100]

I think yazeed is refering to the current economic system that is employed by the world. A paper money system can in theory be islamicly acceptable as long as it is directly backed by gold. And I have no idea how the price of gold can be determined islamicly.

Agree, and backed also by other commodities. Using commodities like gold to trade just isn't practical no matter what proponents of The Gold Dinar System say. In a fast paced world where e-commerce and debit transactions take priority, digital currency takens precedence. Digital currency would still have to be backed by commodities like gold, thus invalidating direct transactions with gold. If this applies to digital currency, then this should also apply to paper currency, as long as it's backed by gold.

[5M1L3Y]

It's is 100% Riba money because the paper has no intrinsic value.

275. Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: "Trading is only like Ribâ (usury)," whereas Allâh has permitted trading and forbidden Ribâ (usury). So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire - they will abide therein.

The rich are permanently rich and the poor are permanently poor.

[yezeed]

Because of usury the rich are permanently rich and the poor are permanently poor..............the problem with gold right now is that the jews have hoarded most of it in israel , switzerland , central banks and secret offshore locations . Only 16% of the worlds gold supply is available to the public in the form of coin and jewellry , and out of 130,000 tons of gold above ground level , india owns 13,000 tons of it . The high price of gold today is a vote of no-confidence in government paper money , and at $1,200 dollars an ounce , the price of gold is not just going up but the dollar is going down , gold is a great indicator of inflation . The prophet muhammad (s) said " A day is coming when there will be nothing left of value except gold and silver " (imam malik) At the end of the day real money is gold and silver coin , not government fake paper promises , the sunnah of muhammad (s) was to use gold and silver as a medium of exchange , shareeah money is gold and silver coin .

[5M1L3Y]

Because of usury the rich are permanently rich and the poor are permanently poor..............the problem with gold right now is that the jews have hoarded most of it in israel , switzerland , central banks and secret offshore locations . Only 16% of the worlds gold supply is available to the public in the form of coin and jewellry , and out of 130,000 tons of gold above ground level , india owns 13,000 tons of it . The high price of gold today is a vote of no-confidence in government paper money , and at $1,200 dollars an ounce , the price of gold is not just going up but the dollar is going down , gold is a great indicator of inflation . The prophet muhammad (s) said " A day is coming when there will be nothing left of value except gold and silver " (imam malik) At the end of the day real money is gold and silver coin , not government fake paper promises , the sunnah of muhammad (s) was to use gold and silver as a medium of exchange , shareeah money is gold and silver coin .

It is all leading to the war over the gold in River Euphrates; http://www.youtube.com/watch?v=LAF6uqaJw3o

This is a really detailed and funny lecture; http://www.youtube.com/view_play_lis...76CC27466F868D

[marco100]

It's is 100% Riba money because the paper has no intrinsic value.

275. Those who eat Ribâ (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by Shaitân (Satan) leading him to insanity. That is because they say: "Trading is only like Ribâ (usury)," whereas Allâh has permitted trading and forbidden Ribâ (usury). So whosoever receives an admonition from his Lord and stops eating Ribâ (usury) shall not be punished for the past; his case is for Allâh (to judge); but whoever returns [to Ribâ (usury)], such are the dwellers of the Fire - they will abide therein.

The rich are permanently rich and the poor are permanently poor.

Can you explain to me how paper money backed by gold or any other commodity is Riba ?

I understand Riba in itself whatever form it takes is Riba, but how is dealing in paper which although no value intrinsically, but backed by Gold, is Riba?

If you're using Fiat Currency and Fractional Reserve Banking and paper money interchangibly, then there is an error here, because that wasn't the question.

I'd also like to know how those proponents of "Sunnah Money" and the Gold Dinar would reconcile e-commerce where digital currency is the medium of exchange, even if it was backed by gold.....(after all, the digital currency is even worthless than paper money)

[xs11ax]

salaam

i have never had a proper answer to this question....

why does gold have value? in comparison it is a useless metal. so what makes it so valuable?

when a time comes when food and water is scarce it will have no value at all. try to trade a piece of gold for food or water when there is famine and drought. no one will want the gold.

so, why is it valuable?

[a_muslim]

salaam

i have never had a proper answer to this question....

why does gold have value? in comparison it is a useless metal. so what makes it so valuable?

when a time comes when food and water is scarce it will have no value at all. try to trade a piece of gold for food or water when there is famine and drought. no one will want the gold.

so, why is it valuable?

Probably because it is rare, precious, doesn't rust, shiny etc and alongwith that it was discoverd like 5000 years ago.

In fact, it is because Allah made it valuable. Doesn't Rasoolullah say that gold and silver vessels are for us (muslims) in jannah, not here? Well if it's in Jannah, it must be special.