Gold Standard - The Future for a Stable Global Currency
Hizb Ut Tahrir United Kingdom
PaperBack, 28 Full Colored pages
14.8 x 21 cm
This paper reignites this debate by setting out then refuting the 10 main arguments cited against the Gold Standard. These arguments are distilled from the economics literature and media analysis. The arguments represent the lifecycle and scope of a contemporary gold based monetary system. We explain these arguments and counter arguments to explore whether they are still valid in light of recent and historic precedence, and whether they are insurmountable in the quest for a more stable currency in an unstable world.
Lastly, the author sets out the Islamic position with respect to currency: its adherence to a gold/silver standard and how this will be applied with respect to the ten arguments against its success.
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In early august 2011 gold hit an all-time high , rising over 1900 per ounce and it would surprise few people if it still rose further, not for the first time, fears over inflation and political instability have led investors to seek shelter in gold. Silver, similarly, reached a 30 year high at almost $50 an ounce.
With fiat currency (especially the US dollar) expected to lose value, gold and silver have proved their worth once again. In times of crisis fold is, in effect the worlds reserve currency, as it can be trusted to hold its value.
This booklet argues that gold is not just for times of crisis but should be the monetary base of choice of ensure financial integrity, economic stability and sustainable growth.
While it is not surprising that Islamic viewpoint on money is the use of gold and silver with 100% reserve backing, this paper sets out, then refutes the ten main arguments cited against the gold standard in light of recent and historic precedence.
While refuting these points, the author clarifies that the only system of governance that unequivocally insists upon the gold standard as a benchmark is the Islamic economy, as applies by the Islamic state (caliphate), in islam, a dual metallic standard with gold and silver is applied. No fiat money would be issued by the state and any paper currency must 100% backed.
Gold and silver are both ideal as mediums of exchange they have intrinsic value (including jewelry and industrial use), are widely available, cannot be dominate (monopolized), and there is a regular yet growing supply of them to meet the needs of growing economies.
The financial crisis has exposed just how much fiat currency systems are at the mercy of the banking system making phenomenal profits while exploiting wider society.
By contrast, Islam provides a non interest environment in which there is less incentive to take money out of circulation.