History of Money

An Islamic WorldView

[bit.do/azhom] Radio Islam, South Africa 14m Interview of Dr. Asad Zaman by Mufti Yusuf Moosagie on Tuesday, 8 Oct 2018, at 9:30am South Africa time and 12:30am Pakistan Time

Q1: What is Money? 0:20 to 2:22

This is a deep and difficult Question. BUT WHY is it so complex?
50 people own more than half planetary wealth. They cannot exploit us WITHOUT our consent. Our consent is creating by feeding us FALSE theories about the nature of money. Today, Ph.D.’s from Harvard learn and propagate false theories which make it impossible for us to understand how the current monetary financial systems are used to exploit us.
The KEY question to ask, to unravel the mystery, is “Who has the power to CREATE Money?” We must ‘follow the money’ to find the answer. For more details see The Battle for the Control of Money.

Q2: How has the nature of…

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1 comment
  1. Dingo said:

    There always seems to be a slice of conspiracy theory mixed into the concept of money, and if there is any history shed, it doesn’t seem to go back far enough, or it goes back way too far and misses anything important in between.

    Money becomes easier to understand when you look at it from several perspectives but always remembering that it must answer to history.

    For instance, anyone who has studied religion (as a science) will see that all religions share the same principles, which are quite few. These principles are difficult to follow, and THIS is why we have money. Money, contract, and private property are the means by which to secure ourselves when there is no faith or trust in anything or anyone else. This is not a criticism of money or property nor is it a criticism of the human being, it is simply an objective and observable fact which is easily observable if one takes the time to observe themselves in all their economic dealings throughout their daily lives.

    It is also easier to understand money when we accept that life works in cycles, and this includes civilizations.

    The best way to understand this current cycle is to begin with the time of the Norman Conquest and the the beginning of the feudal era in England.

    Most of us know that the feudal age was like a pyramid type structure with the King at the top, barons and so forth underneath, right down to the serfs etc at the bottom. Each layer or class had to answer to the one above and these relationships usually involved the exercise of some legal right to land and labour in exchange for security.

    Taxes and tithes were levied from the King down, early on it was bi-annually, and payments were paid up through the structure, but in the early periods payments were almost exclusively in real goods and services.

    At some point this dynamic started to change.

    If the King or some landlord wanted or needed taxes paid early (such as for war, preparing for war, emergencies, catastrophes etc) then they began to issue tokens which acted as proof of payment of taxes. So, if a serf had surplus of something that the King needed, even though it was not tax time yet, the King would essentially purchase them using tokens issued by the King. When the taxman came, if you handed over tokens this was accepted as payment of your taxes.

    Obviously then, these tokens had value on account of the fact they could be used to pay taxes.

    It is important to address the fact of why sometimes these tokens were based on precious metals, and other times on tally sticks, and other times using some other exotic means. It was important that these tokens could not be counterfeited, and so this was the reason such methods were employed. The use of precious metals has absolutely nothing to do with any idea that the value or price of these metals were fixed to something. That theory is a fallacy and always has been. The value of the tokens were based on first their ability to be accepted as taxes and second, their ability to not be counterfeited (for obvious reasons).

    Now it becomes obvious that at some point because these tokens had value and could be accumulated, there became a demand for depositories (such as banks), but also that contracts could be created where tokens were consideration by one party to these contracts.

    It is important to note that even several hundred years ago, it was unlawful to transfer the rights to a debt. If Joe owed Fred a hundred (whatever), Fred could not transfer this right to anyone else. It was only changed by the common law when the merchant trade became more prevalent and society started to take on a more commercial nature, i.e. markets, capitalism etc started to show huge sprouts and open up.

    Once the common law changed this all of a sudden the ability to sell legal rights to debt meant that all the wonderful (and not so wonderful) concepts of the banking and finance world we see today opened up. Banks could accept tokens and then issue bank notes as proof of deposit, which themselves could circulate (as these banknotes were liabilities of the bank to the depositor). This also meant that banks could extend credit above and beyond their total deposits.

    This last point is important to understand when we understand that early during the feudal era, it was also unlawful to transfer rights to land (which also meant using land as collateral) except in the equitable jurisdiction and in certain situations only (such as inheritances). For instance, if a contract was drawn up, one could not use land as collateral nor could land be seized for breach of contract.

    During this period, we also did not have what we have today in the sense that all human needs are treated as commodities, or legal owners. This only came about a few hundred years ago when it was realized that due to population growth it became important that anything which was capable of legal ownership would have to find an owner (whether private or public).

    So what we have today is a progression from a very rigid situation back in the early part of the cycle where most relations were fixed and this meant that the need for circulating legal rights was almost was non-existent because they operated up and down, to what we have today where almost everything can be transferred and circulated and where rights and obligations move both horizontally and vertically. Money is but a more liquid form of this. Money still is proof of payment of taxes. This is what you use to pay your taxes, you can’t pay taxes with anything else. If you pay your taxes with a bank liability, then you have really paid in govt issued money, because the liability of the bank is to furnish government issued cash and/or coin on demand (hence the name demand deposits).

    So it is not rocket science folks. It is very easy to understand once you look at it through several perspectives, and you ditch these stupid conspiracy theories.

    If you don’t like the way money is accumulated into fewer and fewer hands then look to find a way to lawfully get out of the money game (commerce) and come up with different forms or relations that are not based on contract la. Use your imagination and look at alternative types of relations which are based on trust law and surplus share arrangements etc. Look to operate under these types of relations and leave all the contract stuff to those who would prefer to operate in the commercial world. There is no legitimate reason why all resources (and all human needs) need to be subject to the law of private contract, because all this does is breed socialism.

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