Our conference must ensure that we explain issues relating to ‘money’ in a manner that can be readily understood, not just by those present in this gathering here in Kuala Lumpur, Malaysia, but also by the hapless multitudes around the world who know little or nothing of this subject, and who look to us for guidance; hence an imperative of ensuring both simplicity and clarity, while avoiding the use of technical jargon. I avoid it to such an extent that those present in this audience will not hear even the words ‘fiat money’ in my presentation.

We must, however, provide an adequate explanation of the term ‘Petro-dollar’, since our view is that it is symbolically present in a Hadith of Prophet Muhammad (peace and blessings of Allah Most High be upon him) on which this paper is based. We must reveal the staggering role that it has played and still plays, in sustaining today’s unjust monetary system, as well as the equally unjust international banking system. Both the international monetary system and the international banking system are absolutely unique phenomena in human economic and monetary history. In other words no one in history has ever experienced the unique injustice and oppression that mankind now experiences in the worlds of money and banking. This, perhaps, explains the strange ignorance of the reality of modern money and banking.

Our view is that petro-money has an even more sinister role to play in the new monetary system that will emerge to replace the present one, consequent upon the imminent demise of the US dollar – but more about that later.  (more…)

Islam has declared war on the moneylender who demands interest. It did so in the very last divine revelation (al-Baqarah, 2:279) to come down in the Holy Qur’an. Here is that last revelation:

“O ye who believe! Fear Allah, and give up what remains of your demand for usury (i.e., the interest due on a fixed deposit, or on any other loan on interest), if ye are indeed believers.”  If ye do it not (i.e. if you persist in your claim or demand for the interest due to you), then take notice of (a declaration of) war from Allah and His Messenger: but if ye turn away (from such claim or demand), then you are entitled to the return of your capital sum (placed in the fixed deposit or otherwise lent); do not enter into (such) unjust transactions, nor allow yourselves to be subjected to such.

If (you forgo the interest due to you and then find) the debtor in a difficulty (in respect of returning the capital sum that was lent to him on interest), grant him time till it is easy for him to repay. But if ye remit it by way of charity, that is best for you if ye only knew.  (more…)