Surviving the Age of Riba,
Hyperinflationary Depression
and New World Order Wars
M. Syed Hoque
Presented at IIUM Muamalat Study Circle
April 2, 2010
Disclaimer
The opinions expressed in this presentation
are subject to change, are not guaranteed
and should not be considered as
recommendations to trade your beliefs,
values or securities. Please consult your
Shari‘ah and Financial/Investment Advisor
before implementing any strategy.
2
What is Money?
Unit of measure
Medium of exchange
Store of value
Repayment of debt equivalent value
Islamic concept of money goes further to forbid Riba in
transactions
Riba An-Nasi‘ah (time value of money)
Credit and cash price has to be the same – so no increase
Riba Al-Fadl (extra charge for loans)
Anything commodity that is used as a medium of exchange, and
commodities have to exchanged on the spot for the same quantity,
and thus eliminate possibility of currency speculation
5
History of Banking
Goldsmiths in Europe (1100 – 1700) found that people who
deposited/pawned their gold for cash always left a certain portion
Over time these goldsmiths used the remaining gold to issue cheques
(IOUs) which were backed by gold
These cheques began to be traded between traders because of their
gold backing, thus began to act like legal tenders
As credibility took hold for these cheques, these goldsmiths started
issuing multiple claims against the same amount of gold in their
possession
This went on for a while until the credibility of the cheques came into
question, and eventually the goldsmith flees the town
6
History of UK & US Central Banking
First Central Bank (Bank of England) 1694
First private Central Bank in the world
History of concentration of power, boom/bust cycles via rise and
fall of interest rates, and war cycles in Europe bringing more
control under the Monarchy of England is well documented
Prior to 1913, there were three prior attempts to create a Central
Bank in the USA
Finally, succeeded in 1913 to create the Federal Reserve Banking
System in the USA, after a group of Wall Street money men went off
to Jekyll Island for two weeks and fashioned the US Fed after the
Bank of England
It is a private bank owned by monied families of the world
Every since then boom/bust cycles became even more pronounced,
which game us the great inflation between 1914-1929 and the great
depression (1929-1939)
7
th
4
US President (James Madison)
―History records that money
changers have used every
form of abuse, intrigue,
deceipt, and violent means
possible, to maintain their
control over governments by
controlling money and its
issuance.‖
US President 1809-1817
8
Regrets by Woodrow Wilson (28th US President)
about the signing of the Federal Reserve Act in 1913
―I am a most unhappy man. I have
unwittingly ruined my country. A great
industrial nation is controlled by its
system of credit. Our system of credit
is concentrated. The growth of the
nation, therefore, and all our activities
are in the hands of a few men. We
have come to be one of the worst
ruled, one of the most completely
controlled and dominated
Governments in the civilised world, no
longer a Government by free opinion,
no longer Government by conviction
and the vote of the majority, but a
Government by the opinion and
duress of a small group of dominant
men.‖
US President 1913-1921
9
Mayor Amschel Rothschild
(February 23, 1744 – September 19,
1812) was the founder of the powerful and secretive Rothschild family
banking empire, that would become one of the most successful
business families in history
―Give me control of a nations money supply, and I care not who makes it‘s
laws‖
Sent five of his sons to set up banking institutions in London, New York,
Zurich, Paris and Frankfurt
In 2004 Rothchild‘s gave up their seat on the 8-member gold price fixing
board after doing this for over the past couple of centuries. The question is
why did they do this when gold price was beginning to rise?
In 2005, he was ranked 7th on the Forbes magazine list of the The
Twenty Most Influential Businessmen Of All Time. The business
magazine referred to him as a "founding father of international finance‖
10
Quote from 25 June 1863 Letter from
London Branch of Rothschild Brother
―The few who understand the system…will either be so
interested in its profits, or so dependent on its favours,
that there will be no opposition from that class, while, on
the other hand, the great body of people, mentally
incapable of comprehending the tremendous advantages
that Capital derives from the system, will bear its burden
without complaint, and perhaps without even suspecting
that the system is inimical to their interests.‖
- Quote from “Dajjal - The Antichrist”, Ahmad
Thompson, 1997, Ta-Ha Publishers, UK
11
Shareholders of The US Fed Reserve
1. Rothschild Bank
2. Warburg Bank
3. Rothschild Bank
4. Lehman Brothers
5. Lazard Brothers
6. Kuhn Loeb Bank
7. Israel Moses Seif Banks
8. Goldman Sachs
9. Warburg Bank
10. Chase Manhattan Bank
London
Hamburg
Berlin
New York
Paris
New York
Italy
New York
Amsterdam
New York.
Source: www.FinancialSense.com/Market/kirby/2008/0630.html
12
People deposit their money in the bank. Banks are required to keep
certain (regulatory) amount of cash, in case customer call on that
cash (just like the goldsmith)
Bank then lends the remaining amount to other banks or
entrepreneurs, thus the term fractional-reserve banking (and credit
creation)
If one has leaves 1,000,000 as bank deposit, 900,000 would be
lent out
This game of credit creation goes on until prices of assets rise to
exorbitant level which when deflates/collapses has to be supported
by real cash
Then people start converting their cash for ‗hard assets‘ as people
are doing now with prices of commodities soaring (oil, food, gold
silver, etc.)
13
Fractional Reserve Banking
billion
14
Secretary of State (US) 1913-15
“The large Banking interests
were deeply interested in
the WWI because of the
wide opportunities for large
profits.
William Jennings Bryant
(March 19, 1860 – July 26, 1925)
15
of 1920
US Congressman Lindberg (1920s):
―Under the Federal Reserve Act (1913), panics
are scientifically created. The present panic is the
first scientifically created one, worked out as we
figure a mathematical equation‖
16
Another US Congressman Voices Suspicion
Banksters
―It was a carefully contrived
occurrence International
Bankers sought to bring
about a condition of despair,
so that they might emerge as
the rulers of us all.‖
Congressman Louis McFadden
In office 1915 – 1923
17
Economic Conditions to Justify War Industry ?
JP Morgan engineers a financial panic in 1907, and gives
ammunition for the creation of The Federal Reserve Bank
in 1913 (a Central Authority) in the name of creating
financial stability
President Woodrow Wilson wanted to stay out of the war
but with sinking of German passenger ship Lusitania (May
7, 1915) carrying American passengers was sent into
German controlled waters and drowned by German
torpodoes
Fed increases money supply by 100% between 1914 –
1919 to finance the war, and then tightens money supply in
1920, resulting in failure of 5,400 banks outside of the Fed
Reserve system collapses
18
Boom/Bust Cycles and connections to
War Industry
Fed then loosens money supply to create the next boom
from 1921-1925, then Fed begins tighening money
supply from 1925 – 28, Bond and Stock markets crash in
October24, 1929, leading to 10-year depression (16,000
private banks went bankrupt)
President Roosevelt confiscates gold in 1933 to increase
money supply within 9 months (thus repricing gold from
$20 per ounce to $35 per ounce), for The Great Society
public works (roads and bridges) to create jobs
Economy still in doldrums (25% unemployment in US &
Europe), and the IB‘ers create the conditions for another
war (WWII) which created jobs in the M.I.C.
19
Congressman Louis McFadden (again)
May 23, 1933
Congressman brought impeachment charges against
the Federal Reserve System for causing the stock
market crash of 1929. He said:
―I charge them with having taken over 80 billion from the
US government in the 1928…I charge them with having
arbitrarily and unlawfully raised and lowered the rates on
money, increased and diminished the volume of currency
in circulation for the benefit of private interest‖.
-
“Thieves in the Temple – American Under the Federal Reserve
System”, Abdre Michael Eggelletion, Millikan Books, 2004
20
James Warburg to US Senate
Committee on Foreign Relations on 17 Feb
1950
―We shall have World Government, whether or not
we like it. The only question is whether World
Government will be achieved by conquest or
consent.‖
– James Paul Warburg,
Whose family co-founded the Federal Reserve - Speaking
before the United States Senate, February 17, 1950
21
Transfer of Power from Britain to the US
Assasination of King Ferdinand of Austrian triggers WWI, and footsteps of the
assassin leads the Prussians to Russia
War breaks out and Prussian Empire, Germany and Ottomans get together to
fight against the Allied Power (England, France and Russian)
US was brought to the aid of Britain (bleeding badly) when they agreed to
sign the first Balfour Declaration in 1917 to handover Palestine to WJC
Britain, made to fight on two fronts (Germany, Ottoman and Prussian Empire)
with financing from ‗International Bankers or Banksters (IBs), got control over
Palestine from the Ottoman‘s
Divides the Middle-East between the Sheikhdoms who could be controlled
better when they compete with each other for rivalry
Indebted to ‗International Banksters‘ Britain collects debt-servicing payment from
it‘s citizens through higher taxes, causing the economy to go into slump, and
eventually depression, lower the standard of living
GBP falls out of favour as a reserve currency when taken off the gold standard,
and Britain is relegated to a second-class power with shift of power to the US
and the game goes on today until the next power rises
22
Outcomes of Bretton-Woods Agreement
Preparing to rebuild the international economic system as World War II
was still raging, 730 delegates from all 44 Allied nations gathered at the
Mount Washington Hotel in Bretton Woods, New Hampshire for the
United Nations Monetary and Financial Conference. The delegates
deliberated upon and signed the
during
the first three weeks of July 1944.
Pegged the USD to Gold, and rest of the currencies pegged to the USD at
certain exchange rates
USD becomes the new reserve currency of the world, after life was sucked
out of Britain and its currency
World trade dollarised (pricing of commodities in exchanges)
Nonetheless, the world economy flourished between 1945 – 1971
under this agreement because of a stable monetary system under the
Gold-standard, until Vietnam War breaks out
23
Breaking the Promise
US dragged into a phony war in Vietnam by International Banksters in
the pretext of controlling communist expansion in South-East Asia, thus
creating the conditions (like Britain) to be indebted to International
Bankster, and then reneged it‘s promises under Bretton-Woods of
exchanging USDollar for gold, thus opening the channel for monetary
inflation and credit expansion
President Nixon broke the promise of Dollar-Gold peg on 15
August 1971 upon request for gold redemption by Premier
Charles De Gaulle
Long after this event people still thought that the ―USD was as
good as gold‖
As recent as 1996 they backed the Serbian currency with gold, and 2001 in
Argentina, to lend credibility amongst the locals for economic stability, and then
remove the gold backing without people knowing it
24
Their Big Plot, and Allah SWT Plans
In bringing their global institutions to fruition and working
toward the final phase of the global control/government,
the party of Shaytan thinks that they have made a
‗checkmate‘ because there does not seem to be any
power above them
Allah SWT Plans:
When this all comes together Allah Almighty will release the
Dajjal
―They are plotting and I (SWT) am Plan, and I (SWT) am the best
of Planners‖ (Qur‘an)
25
Dajjal
The Biggest Test on Mankind
The Dajjal will show two rivers resembling Paradise and Hell, and the Prophet
(pbuh) said jump into the one that looks like Hell for that is true Paradise
Perhaps that is why the world seems upside down, and everything is it‘s
opposite
What should we make UN when it says we are for peace, and then we hear
of horror and attrocities after the UN is sent in
What should we make of Chairman Bernanke and Secretary Geithner‘s
rhetoric when they say, we are for strong USD and low inflation, when they
are the one‘s priming the monetary pumps and creating boom/bust cycles
When the World Bank says we will solve poverty in the world, ask who has
created the conditions that has lead over 1.6 billion people to live under $1 a
day, and 2.7 billion people in the world to live under $2 a day
The Prophet (pbuh) said evil will spread when good people are asleep, to the
extent that even plants and animals will suffer. If it were not for His (SWT)
Mercy upon the other creations rain would have stopped a long time ago
because of the fasaad of evildoers.
26
Twin towers‘ fall engineered by ‗evil forces‘ to anger the US to war
US is dragged to wars on two fronts, and preparing the grounds for
another country to rule – can you guess which one?
Hint: Anti-Christ is supposed to rule from Jerusalem
Export of manufacturing capability to Asian countries since 1990s, thus
hollowing the productive capacity, benefitting whom?
In this process US has racked up public debt ($9.4 trillion) due to
military adventures for which taxpayers will bear the burden, and for
many pork-barrel subsidies and social programmes
This coming year US Govt. paid farmers $30 billion not to farm some of their
land, even in the face of rising food prices, and shortages due to massive
flooding in the Midwest (bread basket of US and the World)
27
International Bankers will get paid after the Wars
Total debt (consumers, businesses, financial institutions and
government) = $52 trillion, and additional $63 trillion in unfunded
liabilities (pensions, retirements, medical care, war veterans and debtfinancing) costs...not to mention another $12 trillion liabilities assumed
recently in bailouts
Just like Germany in 1920s, US will payback by printing money ever
faster. However, this time it is different because it is the currency that
all commodities are priced
This would not have been so bad if other countries (holding excess
dollar as reserves) did not peg their currencies to the USD, and let their
currencies appreciate which would have depreciated the USD fast thus
reducing inflation in their own countries and caused suffering only for
the US citizens. But propping up the USD has created inflation around
the world
Asian Currency Crisis created to get Asian countries to hold excess reserves
to avoid another currency crisis.
28
Outrageous Compensation at the Top; Reaction
by Masses; and Consequences for Society
In 2006, 173,000 investment bankers in the US earned $36
billion in compensation (average of US$ 208,000 per person)
In 2007, 29 of the top 50 hedge-fund managers made US $1
billion each
What incentive do people at the bottom have when they see
people at the top earning so much with what type of effort
Leads to showing-off and ‗bad vibes‘ amongst the masses
Example of the Prophet (pbuh) of people traveling on a ship
The small man also begin to find ways to steal from the system,
and then no amount of laws and regulations can sustain a
society
29
Debt and Human Values
The Prophet (pbuh) said, ―One who is indebted is
less likely to say the truth, fearing reprisal from the
one who he is indebted to‖. (paraphrased)
When our leaders and us are indebtedness to someone or
other nations, we are less free to express our opinions
Because we have such love for comforts and luxuries, that
we do not want to go against the grain to stand for our
values
Sooner or later the entire nation becomes indebted through
advertising and availability of credit
Position that an Egyptian Shaykh took against British imports
of Tea which was making the countries more indebted
30
Big Question
If these are the Financial, Economic
and Political realities lead by Unjust
regimes/rulers, then is there any other
option but to demand for RightlyGuided God- and Judgement-day
Fearing Leaders?
31
Germany between WWI & II
Devastated in the WWI and war reparations paid to Allied Countries
(aka International Banksters) via Treaty of Versailles (signed June 28,
1919)
Under the Treaty Germany paid through the export of its manufactures
and resources (coal, livestock, etc…)
Under this heavy debt burden, resorts to print money
USD 1 = 9 RM in 1918
Hyperinflation by 1923 (USD 1 = RM 4.2 trillion)
One wheel-barrow fetched only 1 loaf of bread
Even in this devastation Hitler only won 2.6% of votes in 1928
In the midst of the Great Depression Germans were even more
devastated when it‘s export markets (Allied Countries) were also in dire
straights, and voted in Hitler in 1933 with a landslide (62%) victory
32
More Heat than Monetary Value in Paper
Currency in Germany 1923
33
Inflation 19231924:
A German woman
feeding a stove with
currency notes,
which burn longer
than the amount of
firewood they can
buy.
34
Inflationary Stages
Initially inflationary effects of bank credit flows are seen paper assets (rising
stock, bonds and housing market), and everyone loves it because they feel
wealthy – ‗wealth effect‘ (an illusion of paper wealth)
Due to this ‗wealth effect‘ people begin to borrow to live beyond their means,
which stimulates the economy further and this goes on on the notion that the
party will go on for ever
Then a few people begin to question the value of their paper assets, and panic
sets in the markets
Central Banks lower interest rates to stimulate the economy, and if debt
saturation has not reached the economy, may get another lease on life
If debt saturation point has been reached (which we are now experiencing) then
asset prices begin to tumble, and any further stimulation by Central Banks in
lower interest rate, spills over into commodity prices and then real economy
begins to hurt and people cut back their spending in luxury items (vacations,
multiple cars, etc.)
Economy goes into stagflation and any further stimulation of the economy lead
to rapidly rising inflation.
35
One Quote Summarises It All
"There is no means of avoiding the final
collapse of a boom brought about by credit
expansion. The alternative is only whether
the crisis should come sooner as a result
of a voluntary abandonment of further
credit expansion, or later as a final and
total catastrophe of the currency system
involved."
- Ludwig von Mises
36
Triple Curve or Triple Witch
Monetary Inflation
Deficit Financing
Point of Hyperinflation
Real Economic Activity
37
Real Economy Sinking
First Curve
38
39
Real US GDP Has Been Negative for 10 Quarters
40
Official versus Re-Constructed Inflation (US)
Good and the bad of it
Governments have adopted
funny computations for
inflation – core inflation
does not account for food
and energy costs, as if
common person does not
use these commodities
SGS computation suggests
US CPI is running closer to
10%
41
US National Debt Second Curve
42
US M3 Money Supply Growth Increasing Rapidly
M3 data series was abandoned
in March 2006 by the Fed, and
the navy-blue line (re-created
M3 by Shadowstats.com) hints
at the Fed motive
When money supply increases
people or institutions have more
money in their hands to spend
on limited supply things (goods
and services) or for financial
speculation
This is especially true when
money supply increase faster
than productive capacity or
consumers‘ability to consumer
in the lack of credit
Source: Shadow Government Statistics (SGS), www.shadowstats.com
43
44
45
US Debt-to-GDP Ratio (a normalised measure)
46
47
-BigtoYahoo, 4/1/10
―…financial reform…the bill currently under consideration won't
really fix anything, says Simon Johnson…
Johnson is a former chief economist of the International Monetary
Fund, a professor at the MIT Sloan School of Management, a fellow
at the Peterson Institute for International Economics, and a member
of the CBO‘s Panel of Economic Advisers…
To truly reform Wall Street and make the financial system safer and
more stable, Johnson says, we need to eliminate the "Too Big To
Fail" policy by breaking up the big banks…
Until you eliminate the "moral hazard" of Too Big To Fail, Johnson
says, we'll just move from one crisis to the next. Risk-taking has
returned with a vengeance to Wall Street…As a result, in many
ways, we're worse off than we were before the crisis.‖
48
49
From Dr. Christian
Course
Crash
http://www.chrismartenson.com/crashcourse/chapter-3-exponential-growth
50
Former hedge fund manager (Andy Kessler) sums
"By buying U.S. Treasuries and mortgages to increase
the monetary base by $1 trillion, Fed Chairman Ben
Bernanke didn't put money directly into the stock
market but he didn't have to. With nowhere else to go,
except maybe commodities, inflows into the stock
market have been on a tear. Stock and bond funds
saw net inflows of close to $150 billion since January.
The dollars he cranked out didn't go into the hard
economy, but instead into tradable assets. In other
words, Ben Bernanke has been the market."
51
52
One of the two most influential economists of
the 20th Century Milton Friedman
"Inflation is always and everywhere a
monetary phenomenon".
The other was John Maynard Keynes who
proposed that in recessions governments
should spend, even by creating budget
deficits.
But he never went so far as to propose
creating hyperinflation
Source: ―Towards Hyperinflation, Paul Tustain, October 2009, www.BullionVault.com
53
1-in-5 shot at hyperinflation...?
―He may have been wrong, although, given time, he was
generally right on this one. If he turns out to be right again
then the monetary expansion we have already seen will result
in inflation, which the enormous levels of sovereign debt make
it impossible to correct with higher interest rates.‖
―That, together with the novel phenomenon of a large
overhang of currency denominated bonds, provides a
potential for hyperinflation.‖
―It may not occur immediately, and it may not occur at all. But
on the basis of what you now know perhaps you would accept
that the probability of hyperinflation has increased to – shall
we say – 20% within 5 years? That is a level of risk which is
material, and that is why the early movers are already doing
something about it.”
Source: ―Towards Hyperinflation, Paul Tustain, October 2009, www.BullionVault.com
54
Paul Tustain, Founder, Bullion Vault
―If currencies are racing each other to the
bottom the vital thing is to exit deposits and
bonds. Some will exit to land, some will exit
to equities, some will exit to real estate, some
will exit to commodities, and some will exit to
gold. They each have their merits, and their
risks. They are already moving up in price. In
fact there's a lot to be said for a balanced
approach involving them all.‖
Source: ―Towards Hyperinflation, Paul Tustain, October 2009, www.BullionVault.com
55
Hadith
Abu Bakr ibn Abi Maryam reported that he heard
the Messenger of Allah (may Allah Almighty
grant him peace), say: "A time is certainly
coming over mankind in which there will be
nothing [left] which will be of use save a dinar
and a dirham.―
- Book of Faid al-Kadir
(explanation for) Al-Jami'a As-Sagiral
Al-Minnawi
56
Same Hadith, Different Narration
Abu Bakr ibn Abi Maryam reported that the
Prophet (pbuh) said that, "There will come a
time when one who does not have the yellow
(gold) or the white (silver) will not survive in
his daily living."
Mo'jam Al-Tabarani Al-Kabir
(Tabarani's Big Collection of Hadith)
-
-
57
Ibn Khaldun, Al-Muqaddimah, 1379
―And God created the two precious metals, gold
and silver, to serve as the measure of value of
all commodities. They are also generally used
by men as a store or treasure. For although
other goods are sometimes stored it is only with
the intention of acquiring gold or silver. For
other goods are subject to the fluctuations of the
market, from which they [gold and silver] are
immune.‖
- “Gold – The Past and Future Money”, Nathan Lewis,
May 2007, John Wiley
58
Gold Price in US Dollar
59
60
61
62
Germans get by without the euro
The Telegraph (London)18/01/2007
There will soon be 65 regional currencies in operation
alongside the EU's, but the financial authorities are not
worried yet, writes Ambrose Evans-Pritchard
The phenomenon, not seen since the Great Depression, has
left experts scratching heads at the Bundesbank. The mighty
reserve bank, which issues euro notes and coins worth
€146bn for a third of the eurozone economy, is relaxed about
the risk of monetary anarchy. But it is sufficiently puzzled to
publish a 63-page report probing the eruption of this
movement.
"Regional Currencies in Germany, Local Competition for the
Euro?", it concludes that the tiny scale of this bizarre
Schwundgeld - scrip, or specie - poses no threat to the orderly
management of the euro system.
63
100% Reserve Banking (Austrian School)
billion
64
Money, Bank Credit and Economic Cycles, Jesus
Huerta de Soto, 2009, von Mises Institute
65
Tyler Durden of Zero Hedge
Zero Hedge: "Most interesting is the
correlation between Money Market totals and
the listed stock value since the March lows: a
$2.7 trillion move in equities was
accompanied by a less than $400 billion
reduction in Money Market accounts!‖
66
Individual States are going broke in
the Untied States
New Hampshire literally stole $110 million from a medical
malpractice insurance pool ...
Colorado is trying to seize a $500 million surplus from a state
workers‘ compensation insurer ...
Connecticut has tried to create its own magic accounting rules ...
Hawaii has decided to change the definition of the English word
for ―week,‖ cutting schools down to four days ...
California has rejiggered the entire yearly calendar, forcing
companies to pay most of their taxes long before they‘re due,
and ...
Some fiscally sick states have already used the new health care
law as a quick shot in the arm — they‘re counting the money
they‘re supposed to get even before Congress appropriates it.
67
68
rd
3
US President (Thomas Jefferson)
―If the American people ever to
allow private banks to control
the issue of their currency, first
by inflation, then by deflation,
the banks and corporations
that grow up around them will
deprive the people of their
property until their children will
wake up homeless on the
continent their fathers
conquered.‖
THAT TIME HAS ARRIVED!
US President 1801-1809
69
Sources
―Pawns in the Game‖ by William Guy Carr
―Red Fog Over America‖ by William Guy Carr
―Thieves in the Temple‖ by Andre Michael Aggelletion
―World Domination through World Jewish Govt.‖ by Victor Marsden
―Creature from Jekyll Island‖by G. Edward Griffin
―Signs Before the Day of Judgement‖ – an abridged version by ibn Kathir (ra)
―Jerusalem in the Qur‘an‖ by Imran Hosein
―Signs of the Last Days in the Modern Age‖ by Imran Hosein
(www.ImranHosein.org)
―Dajjal – The Anti-Christ‖ by Ahmed Thompson
―The Thirteenth Tribe‖ by Arthur Koestler
―The Globalisation of Poverty and NWO‖ by Dr. Michael Chossudovsky
www.IamTheWitness.com
www.Rense.com
www.Youtube.com
Secret Rulers of the World (29 parts; 300 minutues)
Freemasons: Forerunners to the Dajjal (6 parts; 55 minutes)
Warning to the World (7 parts; 60 minutes)
The Day the Dollar Collapsed (42 minutes)
70
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