Archive for August, 2013

The Colour of Money

Posted: August 28, 2013 in Economics

“The U.S…. had given blacks a check “which has come back marked ‘insufficient funds.’”

Pro capitalists may argue that true capitalism is the best way to lift people out of poverty and enhance the quality of life.

Taking the USA as an example, some deeper analysis shows that this is not the case.

Is Capitalism the dominant contemporary system of this world, or is there another form of supremacy that dominates all our lives today? Readers are directed to a thought provoking blog exploring counter racist perspectives;

Earlier this year the USD price of an ounce of gold had tumbled into official bear market territory, after enjoying an extending bull run for the best part of over a decade. Although it is still high relative to historical standards, the decline in price has prompted the investment community to ponder over its desirability as part of ones portfolio.

Aside from this discourse, the current economic crises has, as often the case in the past, given fuel to the debate about fiat money and its alternatives.

I intend to explore the contrasting views on Gold in future posts

In the meantime, here is a unique website dedicated to real investment in this commodity. Check out the ‘Education Centre’ for informed reading

The Real Asset

..currently the wealthiest nation by GDP, and also the most indebted, in absolute terms. Here is a visualisation of the scale of debt and fiat money that exists in the US.

Interested readers may also like to view a number of other such graphics on a range of money related issues on this website, recommended are the infographics of the ‘..World in Debt’

For more understanding of how we got to where we are now in the world of Ribanomics, I would like to direct you to this series of documentaries:

From Adam Curtis, The Mayfair Set – looking at group of influential British businessmen who made their mark

Commanding Heights: The Battle for the World Economy – a more recent (20th Century) look at the implementation of popular economic theories by world governments and their affect on the global marketplace, over the course of the century. An excellent piece showing the evolution of the overt monetary system.

The theme of economic theory and their famous, or even infamous proponents, is explored further in the context of the current crises in this 3-part series, The Masters of Money. The contrasting views of Hayek, Keynes and Marx and the differing application of their work has defined much of the last centuries economic developments. This was a joint production by BBC and the Open University – if anyone can find the full three episodes, please reply to this post with a link.

A couple of further articles showing the fallacy that is Islamic Banking & Finance;

How Sharia-compliant is Islamic banking?

“We create the same type of products that we do for the conventional markets. We then phone up a Sharia scholar for a Fatwa [seal of approval, confirming the product is Shari’ah compliant].

“If he doesn’t give it to us, we phone up another scholar, offer him a sum of money for his services and ask him for a Fatwa. We do this until we get Sharia compliance. Then we are free to distribute the product as Islamic.”

How Islamic finance missed heavenly chance

“Scholars and bankers have become more and more sophisticated in finding ways to get around the prohibition of interest and of uncertainty – and create a shadow of the conventional finance system”