Archive for January, 2014

Please find here and the link below, a fascinating insight to the islamic principles behind Riba/Money and the system that governs these issues.

Umar Vadillo states how the many scholars of today have failed to understand how fiat money is distinctly part of the riba-nomic framework and any solution cannot come from within this all pervasive system.

Of particular note is the following, which details an alternative system using commodity minted money; Dinar’s and Dirhams, which are available to purchase now from the World Islamic Mint This link gives extensive information of the true nature of Riba from fiqh, and how it manifests itself in the contemporary sphere.

Previous posts which referred to fiat currencies not having any intrinsic value as they are not supported by commodities such as precious metals, lacked one vitally important point.

These currencies are indeed backed by something… I learnt through RT’s Max Keiser;


This certainly brings into light the ideals of liberty, freedom and democracy.

Readers who viewed the above titled documentary by Niall Ferguson, featured in the following blog post, would be interested in this analysis produced by the Tabah Foundation.

Please view the following documentary on the financial system/crises, released in 2013, excellent contributions from regular commentators in this area such as Tarek El Diwany, Max Keiser, Joseph Stiglizt and many other notable mainstream commentators

To quote one of the many phrases seen/heard in this video;

“…to understand something, is to be liberated from it…”

Japan is one of the most indebted countries on earth, when gauging total debt to GDP (although as readers of this blog should now know, it all depends on our basis of measurement and what we count as debt)

This piece gives more perspective to the nature of national debt and the way in which nations have, and will in the future, seek to deal with the unrepayable amount of this burden in order to prop up the existing system

“Money is hugely important, but also ultimately trivial. The productive forces of a society are what matter in the end”

As the price of this virtual currency continues it volatile rise, these recent articles give a more considered view of the mania around Bitcoin and seek to determine if it really can be considered an alternative to the current monetary system.

Since the last post on this issue, Bitcoin has received verbal endorsements from a US senate committee (CONfidence is essential to any created currency) and an investment by the Winklevoss twins, to name a few examples of its growing acceptance internationally. But there have also been a few negative developments – a ban by Chinese authorities being an example

My own thoughts welcome the perceived independance from any Central Bank or government authority, the absence of debt creation and its controlled circulation, but I have always been uncomfortable about the fact that it is still a form of ‘paper’ money with no intrinsic value, and the same mis-pricing mechanisms are available for the exchange of this ‘money’

Please read these two pieces discussing the downside risk of this digital currency – clearly a big pinch of salt is still needed when considering an investment here and opinion is becoming ever more divided

Bitcoin: The Rise and (Inevitable) Fall

Bitcoins: The second biggest Ponzi scheme in history

Related Ribanomics posts about Bitcoin;

Alternative Currencies: Bitcoins – is it just a fad?