Article: Major Economic Reform
MMJ 20230118
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ECONOMICS ITSELF IN NEED OF MAJOR REFORM
Economics itself is in need of major reform. Economics text books teach banks are neutral entities being conduits for funds from excess units to deficient units. I.e. gives loans from deposits.
Nothing can be further from the truth; banks do not need deposits to give loans. Banks are money creators creating new numbers money every time a loan is given. So instead of being neutral players in the economy banks are havoc money creators!
So how right is a govt economic policy crafted from textbook beliefs that banks are neutral in the economy?! Economic theory further says before Investments can exist there must be Savings. I.e.the famous S before I. In reality Investments arise when a bank credit committee approves a loan. A remote location could receive a RM100 million investment tomorrow if the Banks' Credit Committees so decide - nothing to do with S or I!
There is a major Reform Movement called Reform Economics who's trying to Reform Economics in the world today. University students in the Netherlands have demanded their Univ Profs stop teaching wrong economics! But its not easy when years and years of Economics have been taught on misleading knowledge.
Nothing will change until we dump the West as the Elixir of Knowledge and crown Knowledge based on Quran and Sunnah at its rightful place.
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Dikemaskini [Updated]: Sam Ahmad 20230626