Article: Riots in Indonesia and Bangladesh
MMJ
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PEOPLE ARE RIOTING IN PROTEST AGAINST THE GOVERNMENT IN INDONESIA TODAY, AS THEY DID IN BANGLADESH A FEW MONTHS AGO, AND AS IN MANY MORE ECONOMIC REVOLTS AROUND THE WORLD BEFORE THIS, DUE TO INTENSED ECONOMIC PRESSURE SUFFERED BY THE PEOPLE. THE BANKS LOOK ON INNOCENTLY
A country needs money to develop. This money can be created internally or this money can come from abroad. Money can be gold or silver coins, or just pieces of paper.
When people receives money, they can start economic activities such as opening a restaurant, opening a company, opening a food stall, opening a small or large farm, planting produce, planting oil palm, gold mining, barber shops, open a factory, run a service business, transport goods from city to city, establish large industries, shipping companies moving goods and products from country to country, set up petroleum refineries, other industrial complexes, and the like.
As a result of receiving the money, jobs are created for the people of the country and economic output is created for the country.
The sources of money are diverse. In the past, foreign gold and silver coins arrived in our country, or we ourselves produced these valuable coins.
Sooner or later paper money is used.
The way this money reached entrepreneurs was either through profit and loss sharing , or via debt with demands for interest
Fiqh (Islamic body of law) so far has discussed the rules on how the money reached entrepreneurs, but not addressed fully on the source of money, or how the money was created.
The way money was actually created seems to be presently unaddressed for Islamic legal provisions. Although there are now opinions that require that money be gold and silver or at least that money be based on gold and silver.
And there are opinions that extend the current backing to other natural resources such as palm oil, petroleum oil and the like.
It is very strange that there is no effort to research more deeply into the current system of money creation by the government!
Cuurently it is implied permissible to accept current money for the sake of daily convenience even though the way money is created is not really understood. This is however known to be temporary.
But why is there no serious effort to research this matter? Why are Monetary Reformers given a deaf ear by the Government and the legal authorities?
Actually, behind this creation of money there is a very great deception and wickedness suffered by the common people of all countries around the world, destruction of some countries in the world irrespective of their race and beliefs but mainly suffered by Islamic countries, culminating in the genocide that is happening in Gaza and Palestine.
For the Muslims It can be said that the reason why God and the Messenger declared war on practitioners of riba (usury) is now clearly witnessed by what is happening in Gaza and Palestine!
Just because our leaders do not understand the cause and effects, it does not mean that they are exempt from accountability.
A little humility is called for to learn and understand the issues.
Firstly, understand that the most money in a country are not coins and banknotes, but numbers money that moves from bank account to bank account.
Paper money and coins only make up 3%-5% of a country's total money; while numbers money amounts to between 95%-97% of the country's money.
What is numbers money?
We have paid our electricity bills for example via internet banking which involves transferring numbers from our bank account to another bank account. And there are many other online payments we make which involve transferring numbers from bank accounts to bank accounts without involving paper money or coins.
Companies also transfer money from bank accounts to bank accounts, amounting to millions, tens of millions and even hundreds of millions using cheques or online transfers
Not all the money in these banks starts from depositors depositing cash into bank accounts; most of this numbers money is just created by the banks when they make loans.
For example, say a bank is newly established and collects RM100 million in cash deposits from the public.
The Central Bank sets a condition for banks to only make loans/financing of no more than 80% of the total deposits.
So when a bank makes a loan of up to RM80 million, it must stop making loans.
Actually, no, banks are allowed to continue making loans by creating new deposits.
For example, if a bank wants to lends another RM80 million, the Central Bank allows the bank to create a deposit of RM100 million and lends RM80 million, as long as it maintains the loan/deposit ratio at a rate not exceeding 80%.
This is the hidden and illicit power given to banks that is not publicly made known, which the Central Bank has hidden for so long from the knowledge of the people, and apparently from the knowledge of politicians and the government as well!
The Deputy Governor of the Central Bank of Malaysia has just made a confession at a Conference in n Bangkok recently, namely, yes, banks create money!
As long as the money created by the banking industry is directed to the real economy, it seems ok for the country even though the Islamic fatwa has not been passed. Monetary Reformers are just waiting for the government to understand and the fatwa determiners to convene; we are ready to help anytime .
Jobs will be created and economic output will soar, although it will not be as beneficial as the Equity system required by Islam.
According to the current wisdom of the system unchanged until now, banks are free to make loans to whoever they like even if the effects are devastating for the people and the country.
So banks ignore and do not focus on lending to the real economic sector that creates jobs for the people and economic output for the country.
Banks focus 70% of loans on the sectors that are most profitable for them, namely the moneylending sector of personal loans, and personal sector of credit cards, housing and cars.
This impose agony on the people of the world, producing permanent and mandatory inflation for humanity and bubble inflation for housing.
Only 30% of the total loans are directed to the real economy to create jobs and economic output for the country.
The Small Medium Enterprise Sector (Small Businesses Sector) defined as companies with sales of RM50 million or less, generally creates 70% -80% of the jobs for a country.
But in Malaysia, banks only give 16% (world 8%) of the total loans to the sector that creates 70% of these jobs
As a result, there are not enough jobs in the country. Every year, the number of young people and graduates looking for work exceeds the number of jobs available.
So the salaries of those who are lucky enough to get a job are squeezed. And in reality, their parents' salaries are squeezed too!
The government proudly announces "full employment" for Malaysia, but in reality, Malaysia is "full employment of underpaid people” who actually are forced to accept any job to put food on the table!
We have discussed that banks create new money when they make loans.
So when banks make billions of Ringgit for personal loans, this means that money is created indiscriminately without goods and services increasing at the same time.
This bequeaths permanent and mandatory inflation to the people, placing a painful burden on the poor.
This is why there was rebellion in Bangladesh, and now in Indonesia!
The people are fighting the government.
We are actually informed that the Indonesian Parliamentarians have not had a salary increase for 20 years!
And the housing allowance they just received which seemed exorbitant to the suffering ordinary folks, is because the government houses are running out and delipidated ,and the housing allowances are cheaper than building new houses.
But the rebellion against the government still took place because nobody sees or understands the existence of the hidden enemy.
In Indonesia, the banking industry makes a profit of RM81.5 billion a year.
Actually, there is no need for the RM81.5 billion (USD19.4 billion) p.a to be gifted to the Indonesian banking industry, for lending money they are allowed to create themselves.
This RM81.5 billion can belong to the Indonesian people if Indonesia practices the Sovereign Money System proposed by the Monetary Reformists of the world. Which will be followed by wages and salary increases, the elimination of unemployment, and plummeting inflation.
Do note the Sovereign Money System is designed to exclude the power to create money from all ruling governments.
Please visit the International Movement for Monetary Reform at https://monreform.org/ or the Movement for Monetary Justice Malaysia at https://telegra.ph/MMJ-Home-01-04 for more information.
Similarly, the uprising in Bangladesh with the overthrow and expulsion of its Prime Minister from the country.
Has the Bangladesh problem been solved?
Or is it just a transfer of power from a Prime Minister who does not know, to a Prime Minister who does not understand?
In Malaysia, the banking industry makes a profit of RM55 billion (USD13 billion) p.a. which can also easily be made to belong to the people under the Sovereign Money System.
Don't Malaysians want a Basic Income for every B40s family, Free Education to University, a fall in inflation, an increase in salary levels, and the abolition of income taxes for B40s and M40s?
The decision is ours to make! The banks are not innocent.
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Dikemaskini [Updated]: Sam Ahmad 20251031