Salamun Alaikum Brothers and Sisters,
Purpose of money is to act as a
Medium of exchange (*
Important point). Money properly understood is a means to an end, not an end in itself.
Current world monetary system is based on interest bearing debt. It is Fractional reserve (FR) interest on Debt monetary system. If the FR rate is 10% of a country then commercial Banks can give ten times the amount of deposits theoretically as loan, creating money out of thin air I think this is
Riba too.
High interest rate mean low money supply low interest rate mean high money supply.
The amount of debt loan people seek will depend on the interest rate. And the outstanding debt is the actually the Money in the system (Money=debt).
All countries call them self Islamic (Which I don't believe because those are kingdoms or dictatorships or mix of both with majority of people happen to be Muslims) Have Central Banks which sets interest rates And Commercial Banks create Money out of thin air.
All Muslims should know we are living in an interest on debt monitory system which creates money out of thin air. And this Money is backed by nothing (Fiat).Most of them pegged to fiat (Backed by nothing) US Dollar.Islamic money should is based on real things which have real value or the money should be backed by real things.
Before looking at Islamic monetary system let's look at something similar to in recent history. Miracle of Wörgl ,
demurrage (holding tax) money.
An experiment in Wörgl articlehttp://alt-money.tribe.net/thread/70e5eb29-853d-44ca-9faa-b789d1757037 Main out come of this experiment is it
increased the circulation of money. There are other advantages listed in the article. Interesting point it is the Central Banks who decided to stop this experiment by passing a law.
The Islamic monetary system is based on Zakat and money that has Real intrinsic value
Both Zakat and Sadaqqa (Charity) are duty on Muslims. We are asked to do both. Quran doesn't say one is obligatory and one is not obligatory.
In fact Zakat was given more weight because it is the monetary system. Even the non believers asked to pay Zakat.
According to Hadeeths these are the 9 things we are asked to pay Zakat.
- Wheat
- Barley
- Dates
- Raisins
- Gold
- Silver
- Camel
- Cow
- Sheep (including goat)
10th one is
As an obligatory precaution, upon the wealth in business.
If we analyze closely all 9 tings listed above is used as
medium of exchange (Money). Some of these things you can only find in Arabian Desert that is important to Arabs who lived at that place so they used these things as
medium of exchange(Money). If another community used other things as
medium of exchange(money) then those are the things Zakat should be applicable. People must use mutual consultation to decide what are the things there going to use as
Medium of Exchange(Money)The messenger Set the
Demurrage rate or
holding Tax as 2.5% at that time (1% in Worgl ) with consulting the people, this is how Rasoollullah followed the Quran. Zakat
increased the circulation of goods and services.
Quran doesn't give you the Zakat rate you should decide this with mutual consultation.
If someone think this is not the purpose of Zakat
Then please tell me how the Islamic Monetary System works. Is it right all these so called Islamic Countries that has monetary system that based on Fractional reserve interest on Debt?
We were asked to pay both Zakat and Sadaqqa but both have different purposes.
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