Sound Money in the Quran

By Imran Akhtar

Financially strong, secure, and reliable money

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Money in the QuranNumber of verses that directly reference money:

Spend money in the cause of GodGive money to charityYour money will not help you

One beautiful verse says:GOD has bought from the believers their lives and

their money in exchange for Paradise [9:111].

But these verses don’t talk about Sound/Reliable Money

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Another concept about Money[11:85] O my people, you shall give full measure

and full weight, equitably. Do not cheat the people out of their rights, and do not roam the earth corruptingly.

[6:152] … You shall give full weight and full measure when you trade, equitably. …

[7:85] … You shall give full weight and full measure when you trade. Do not cheat the people out of their rights.

[11:84]… Do not cheat when you measure or weigh.

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Verses from Quran (cont.)[17:35] You shall give full measure when you

trade, and weigh equitably. This is better and more righteous.

[26:181] "You shall give full measure when you trade; do not cheat.

[83:2] Who demand full measure when receiving from the people.

[83:3] But when giving them the measures or weights, they cheat.

FULL WEIGHT and FULL MEASURE

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Full Weight & Measure in Bible[Leviticus 19:36] Your scales and weights

must be accurate. Your containers for measuring dry materials or liquids must be accurate. I am the LORD your God who brought you out of the land of Egypt.

 [Proverbs 11:1] The LORD abhors dishonest

scales, but accurate weights are his delight.

[Proverbs 20:23] The LORD detests differing weights, and dishonest scales do not please him.

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Short History of MoneyBarter system involved trading one good for

anotherI need rice, you need eggs, we swap

Problem: requires a ‘coincidence of wants’, cumbersome

Solution: use commodity money (like copper, gold, shells, salt, etc.)

Metals emerged as money over commodities like cattle or shells

Then Gold and Silver emerged from Asia to entire world as the most common form of money

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History of Money (cont.)Savers deposited their Gold and Silver coins

at goldsmiths.Received a note/certificate for their deposit.Once notes became trusted medium of

exchange, an early from of paper money was born.

As notes were used directly in trade, goldsmiths observed people would not usually redeem all their notes at the same time.

Goldsmiths saw the opportunity to invest their coin reserves in interest-bearing loans and bills.

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Fractional Reserve BankingBank decides to keep only 20% on reserveFor example, I deposit $100 at a bankBank keeps $20 for reserves and lends out

$80The $80 is deposited in a bank, bank keeps

$16 (20%) and lends out $64.This process continues until maximum total

deposit created is $500 and the max increase in money supply is $400

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Fiat MoneyNot backed by reserves of a commodityMoney is given value by government decreeUS Dollar went off the gold standard in 1971

under Richard Nixon

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Fast forward to TodayUsing Fiat Money and Fractional Reserve

Banking, banks start giving very risky loans to earn more money.

Loans fail, financial crisis.Central Bank prints more money to give to

banks, creates inflation.Money printing is possible because of Fiat

money, money not tied to any commodity

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Honest Weights and MeasuresYou worked for 4 hours, were given $100When bank prints money, your $100 is worth

less because money was created out of ‘thin air’, someone got money for free.

An unlimited amount of money can be created this way. Full measure of 4 hours changed.

[26:181] You shall give full weight and full measure when you trade; do not cheat.

We are violating the Quranic and Biblical law!

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Effect of ViolationInflation is very high in countries around the globe.Too much money printing causes entire countries to be

destroyed and people lose all their wealth.US engaged in money printing, so we’ll eventually see

inflation rise here tooZimbabwe and Argentina examples of too much

printing.Zimbabwe the bread basket of Africa to basket case.

Inflation hit 100,000%Zimbabwe bank issues $10million bill - but it won't even

buy you a hamburger in Harare (Capital city)Revolutions in Egypt, Tunisia, Yemen caused by Inflation

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High Inflation

Inflation is a stealth form of Taxation

Country Inflation rate annually

Liberia 11.2%

India 11.7%

Sudan 11.8%

Iran 11.8%

Yemen 12.2%

Egypt 12.8%

Pakistan 13.4%

Argentina 22%

Venezuela 29.8%

At 12% inflation, $100 becomes $52 after 5 years

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Beautiful Notes Not Worth MuchWon’t buy a hamburger

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Vietnam 500,000 Dong = $31.37

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Indonesia 100,000 Rupiah = $11.05

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Guinea 10,000 franc = $2.33

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Iran 50,000 Rial = $5.35

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Sao Tome and Principe 50,000 Dobra = $3.47

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Sound US DollarCountless wars have been fought and

countless people killed over currency control.

The same inflation can happen to the ‘mighty’ US$

We should support people who stand for sound money.

Of all the presidential candidates only 75 year old Dr. Ron Paul has been advocating sound money for the last 30 years.

You want sound policies and a more peaceful Earth, look up this man!

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ConclusionWe should understand God’s laws on

Sound/Reliable Money and follow them. Otherwise we bring untold suffering on the people

Full Weight and Full Measure = Sound/Reliable Money

[11:85] …You shall give full measure and full weight, equitably. Do not cheat the people out of their rights, and do not roam the earth corruptingly.

[Proverbs 11:1] The LORD abhors dishonest scales, but accurate weights are his delight.