Tuesday, November 29, 2011

Alchemy, Fiat Money and the Zealous Watchdogs

Oh Lord! Sorry! I should have been studying Your Secrets instead!
8. Philosopher’s Stone II
Deceived and tricked,
They rest their hopes
In transmutation,
Drowning in complexities,
Drifting into conjecture.

Not knowing that
Alchemy is the quest
For gold
But without the ‘L’.

Prophets have said it. Saints have said it. Evangelicals, mystics and decent people have all said it. It is written in the holy scriptures and in the lessons of spirituality through the ages. Why look for gold when there is God to look for? Why be satisfied with the kingdom when you can have the King Himself? But we mortals are like that. We make mistakes, we err than we go, "Err... ooops. Sorry, God."

Sexy, sexy gold and silver bars. 

There used to be a time when people go mad for gold. They would steal for it, beg for it and marry for it. The possession of gold ruled their moods, and often ruining their lives. But then, sometime during the 20th century, fiat money was created. Fiat essentially means that this money is 'by right'. And it is devolved from a country's legislation on the central bank and the monetary laws. Right now there is no other type of money in circulation in the world. But lets not waste time on economics, for the truth is...

7. Fiat Money
... is Monopoly™ Money.

Fiat money is essentially make-believe because... err, how do I put it frankly, because IT IS. It is essentially an I-owe-you issued by the central bank or a you-owe-me issued by the commercial and investment banks. There used to be a time long ago when you can actually exchange paper money for gold. Now that those days are long gone. Fiat money is also known as paper money...

188. Paper Promises
Paper money make poor substitute
For gold and silver,
A mode of transaction
On human promises.
And oh, how well
We know of man
And his paper promises!

In the offices of the European Central Bank there live gremlins. And their entire job
is to make gremlin promises.
People nowadays are worried about the value of money. And there are a small but noisy group asking for the return to gold and silver. But their crusade is difficult. For it is in the interests of the powers-that-be to keep the system in place, even as we see the ruination of economy and capitalism by the 2008 credit crisis and the current Euro-mess in Greece, Ireland, Spain and Portugal. This is not capitalism or free market, for there is no competition to banks. They set the rules, they break their own rules and often they change the rules to suit their profit margins. And they would fight all comers to keep the system in place... And keep YOU in your place in the ponzi-pyramid scheme that we are presently living in...
At which level of the pyramid are you?

14. The Pyramid 2
There is no get-rich-quick schemes,
No multi-level marketing pyramids
More heinous and globally prevalent
Than the interest-banking
And fiat currency systems of the world.

And lo! Its illusion is guarded by watchdogs
Zealous in their affairs.
The Federal Reserve. One of the most fiercest watchdogs around...
I am informed that they never sleep.

In the mean time, the people are blackmailed and threatened. Without fail, every minute and every day, the mainstream media is awash with news as to how bad things are going to be if the banks collapse. If the fiat currency collapses. If the pyramid crashes into society. So people are scared even to voice their concerns...

18. The Pyramid 
The fiat currency system
Is a weapon used by all governments
To blackmail its restless population;

‘Dismiss us? Do so and see the savings
That you keep in our currency take wing,
I am sure your children who will go hungry
Shall understand your crusade against us!’
The Greeks are up in arms but to no avail. People say that they were
bad money managers. But I think they got fooled by their own politicians and bankers.

The system is corrupt and biased against free market competition and capitalism. I think that many people who are protesting the banking corruption in USA and Europe are not against capitalism or free market. They are simply asking for honesty in government and transparency in the relationship between the elected representatives and the big banks. And they are asking why the few are so often advantaged to the detriment of the many.

But ultimately for many of us, we are merely reiterating the words of the wise before us. After all, did Jesus not chase out the money-lenders? He had a point, and I wish to marry that point to the concept of tawhid in Islam which speaks of the utter Uniqueness of God and His Attributes...

132. Mortal Usury
Oh My enterprising servants!
I have vested upon this earth
Wealth of certain certainty
For people of certainty,
Dabble not in the arts of usury,
And attempt not to copy My Unique Ability
To make something from nothing.

We mortals cannot make something out of nothing. Whether it is fiat money or interests on loans, people are essentially trying to do just that. I do not know if or when the fiat money and usury banking system will ever end. But I think we have seen enough examples through out the world and notice how such a system is easily corrupted by banks and insurance lobbyists and the politicians who are their paid minions. There used to be a time when paper money is at least backed by gold and banks actually do their job, which is to provide financial services to industries of manufacturing and trade. A time when regulators were actually given the laws and resources to supervise the industry. Now we know that those laws have been changed, and each budget we find the regulators scrimping to understand, much less regulate the financial alchemy engineered by rocket scientists under the hire of Wall Street and the City (London).

God made man and he did not leave mankind to our own devices. Ought we not to trust Him? Even the USA Dollar says so...

Have a fiscally prudent day, sunshine.

wa min Allah at-taufiq.

Hate has no place in Islam
Love will show the Way


sonia said...

Salam Taufiq, hope all is well with you and yours. Thank you for articulating this so succinctly.

I understood somewhat the problems and dangers of financial alchemy and usury but i never did before now made its connection with the concept of Tawhid.

"dabble not in the arts of usury,
and attempt not to copy My Unique Ability,
to make something from nothing"

I will remember these lines and probably on occasion borrower them from you.

Thanks again Taufiq, God bless.

Milky Tea said...

Salams Sonia. Long time no hear! Yes, the issue surrounding fiat money and usury is not merely a question of social equity and fairness. Underlying the problem is that we are trying to build something out of thin air. But from this 'nothingness' people actually lose their assets and homes through foreclosures. So Banks bet with nothing but win back something. There is an alternative system - The economy, the allocation of resources, the effective use of the baitul mal, the taxing of unproductive wealth (as opposed to usury), the suppression of corruption (by which I mean that even being bad or lazy at your job is corruption), the ideal of holding wealth not just for consumption and self gratification but as a trustee for the future generation are all meant to re-channel money back into productive economic activities.

Thanks for dropping by!

Pax Taufiqa.