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**Kneefrenolf** · 10-19-2011, 02:07 PM

how about the current system where money is not backed by anything and created out of interest? what is the islamic stance on that?

Yes, that is what our current system is. Money is no longer backed by gold, so its no longer a promisory note, or receipt note etc. So there is no point digging old argumentation of last centuries about the trade of debts. It does not apply to our currency anymore.

I have read and understood many aspects of our currency but and failing to understand it being "created" out of interest. Our Murabitun brother keep saying that the money has interest "IN" it. I still cannot understand this and hence have not accepted it.

Yes, money is merely printed. Tomorrow US can print 2 billion more notes, and it will have 2 billion more dollars in circulation. But the money market will devalue the dollar because of the excess of dollars in the market. Suply increases, the demand decreases. Although its not as simple. The strength of dollar is not only because of it being printed or being in abundance etc, its primarily because of the high dependence on it in the global market. The demand you will have for dollar in international market, the more leverage you will give america to carry on printing it. This is why America was against the concept of Euro. because euro provide a more stable currency for the world market to rely on.

Hence, the idea of bringing gold and silver back is definitly a noble one. It will crush this fiat money. The only contention has been the way to go about it.

10-19-2011, 02:07 PM	#25
Kneefrenolf Join Date Oct 2005 Posts 366 Senior Member	how about the current system where money is not backed by anything and created out of interest? what is the islamic stance on that? Yes, that is what our current system is. Money is no longer backed by gold, so its no longer a promisory note, or receipt note etc. So there is no point digging old argumentation of last centuries about the trade of debts. It does not apply to our currency anymore. I have read and understood many aspects of our currency but and failing to understand it being "created" out of interest. Our Murabitun brother keep saying that the money has interest "IN" it. I still cannot understand this and hence have not accepted it. Yes, money is merely printed. Tomorrow US can print 2 billion more notes, and it will have 2 billion more dollars in circulation. But the money market will devalue the dollar because of the excess of dollars in the market. Suply increases, the demand decreases. Although its not as simple. The strength of dollar is not only because of it being printed or being in abundance etc, its primarily because of the high dependence on it in the global market. The demand you will have for dollar in international market, the more leverage you will give america to carry on printing it. This is why America was against the concept of Euro. because euro provide a more stable currency for the world market to rely on. Hence, the idea of bringing gold and silver back is definitly a noble one. It will crush this fiat money. The only contention has been the way to go about it.
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