Don: Use paper currency, not gold dinar

KUALA LUMPUR: Islamic countries should continue to use paper currency instead of gold dinar, said professor of comparative economic history at International Centre for Education in Islamic Finance Dr Murat Cizakca.

History had shown that the return to coinage system could increase interest rates and inflation would be difficult to control, he said.

Speaking at a public lecture on Islamic Gold Dinar: Myths and Reality organised by Association of Chartered Islamic Finance Professionals and Inceif yesterday, he said money should serve as a medium of exchange, not as a commodity.

“We need to continue with paper currency, and the central banks controlling paper currency should have full autonomy,” he said. He added that gold supply was dominated by non-Islamic countries.

“The gold dinar will be exposed to speculation as the gold price also has its ups and downs. Islamic countries should continue to use paper currency and increase trade among each other,” he said. - Bernama

http://biz.thestar.com.my/news/story.asp?file=/2011/1/18/business/7817150&sec=business

comments :- Oh what a pitty mr murad as a proffessor make such a foolish idea. Come on give me a brake laa. my point :

1. Paper currency also exposed to manipulation due to long history. It also been traded in the open market and has it ups n downs. The value of the money decreasing every year. On those days back year 1980's, for 1 Ringgit we could buy a cup of coffee, Nasi lemak and still have balance about 40 sen. Now 2011? How much those cost?
2. How could dinar system could increase interest rates and inflation ??? such a bloodyfool comment from person entitled proffesor. Do you know in the era of Prophet Muhammad Rasulullah s.a.w 1 Dinar can buy a sheep and after over 1400s' year till today 1 Dinar = RM 640 actually also can buy 1 sheep! How can this happen? Where is the inflations comes?
3. The main problem in current world where we live actually not the dinar system (syariah system) but capitalism system control by jewish, and worsen all the islamic country follow this rubbish system such as Malaysia also.
4. The return to Islamic trading is essentially a defence and enhance of trade. Why do we need to defend trade? Who/what is attacking trade? Trade has been abolished under the present legal and monopolistic order. To avoid misunderstanding we must clarify that what the World Trade Organisation (WTO) calls Trade, is not Trade in an Islamic sense, but is from an Islamic perspective what we might call monopoly distribution (capitalism).
5. Economics is not neutral, it is an ideology based on presumptions quite opposite to Allah’s injuction “Allah has permitted trade and has forbidden usury”. Economics reveals a different one, “Economics has forbidden trade and has permitted usury”.
6. Mr Murat referring back your foolosh idea about the concept of dinar actually we do not fear that the Sharia Currency (use dinar,) will fail, but we fear people mishandling the Islamic Dinar and then blaming the Islamic currency for their own inadequacies.
7. The Return to the Gold Standard is often mistaken as the Return of the Shariah currency. The mistake has a natural logical appeal: First there were gold coins, then paper that represented in part gold (the gold standard), and now there is only pure paper not backed by any specie of any kind. It is therefore logical but incorrect to imagine that since we came from the gold standard to the present situation we should return to the gold standard on our way to go back to gold.
8. Regarding the validity of the gold, its greatest strength is the fact that it is and it has been the best international money in history. The difficulty comes when gold is seen as interfering with the needs of management of the present debt economy by State institutions. Gold standard is seen by State instituons as being unfeasible or not practical because it does not allow the expansion of credit which is critical to the survival of the debt economy: unable to solve the problem of “there is no enough money” (which is mathematically an endemic problem of the debt economy), and the impossibility gold poses to “bail-out solutions”.
9. The problem is -and we will agree with them in this point- that you cannot slim a fat person by simply tightening a belt around his belly. The “solution” would kill him. Monetarists have blamed the “shortage of gold” as being the cause of all the economic crisis in the past. Their argument is that it does not allow for monetary expansion at the time of crisis. Since we are always in an state of crisis, or preventing a crisis, they see gold as a restriction in their primary concern “dealing with the crisis”.
10. Last but not least mr murat, in my point of view i see that you are acctually confuse or maybe lack of knowledge, but need to speek on sake of your title or representative for somebody else. So what i can say is that Mr Murat please refer back to Quran that if you is a musleem :)