Money - at the root of the problem (Part 1)

You would have heard a Hadis which Nabi Muhammad S.A.W had prophesied 1400-year-ago “A time is certainly coming over mankind in which there will be nothing (left) which will be of use save a dinar and dirham.

The above Hadis has been indirectly being confirmed by a non-muslim, which in March 1997, long before he knew he would be honored with the Noble Prize, Robert Mundell had predicted that “Gold will be part of the international monetary in the twenty-first century”. An ingenuity person would not given a baseless statement, which he himself honored with Noble Prize in Economics.

Money-at the root of the problem, which the current monetary system is the main caused of the inflation and business cycle i.e Economic Crisis that are observed again and again. Problem lies in the nature of money after Richard Nixon had violated the Bretton Wood Agreement in 1971, which the era after, which is now, represented by Fiat Money(paper money without any gold back up) associated with Interest based economy - money created and accumulated in form of "riba" not by accumulate of their gold reserve according to Bretton Wood Agreement. Three things that we need to know in order to comprehend the phenomenon are :-

1. Fiat money
2. Fractional Reserve System
3. Interest

To be continued in part 2

Reference :  http://kijangemascoin.blogspot.com/2011/01/books-related-to-gold-investment.html