The Circle of Justice: The Marketplace

1. Economic Dependence: Stronger countries often exploit weaker ones by creating a dependency on their goods, capital, and markets. This can lead to unfavorable trade agreements that benefit the stronger nation.
2. Debt: Developing countries are frequently burdened with large debts due to loans from wealthier nations or international financial institutions. The conditions attached to these loans can limit economic sovereignty and prioritize debt repayment over social spending.
3. Resource Extraction: Wealthier countries, or their corporations, might exploit the natural resources of weaker countries without fair compensation. This often includes mining for minerals, oil extraction, and agriculture, with little regard for environmental destruction or social impact.
4. Political Influence: Stronger countries may exert political influence or even direct intervention in the affairs of weaker countries to protect their own interests. This can include supporting certain political parties or leaders, military intervention, or covert operations.
5. Labor Exploitation: Global corporations often relocate manufacturing and production to developing countries to take advantage of lower labor costs, leading to exploitation of workers through poor wages and working conditions.

The Reserve Currency and BRICS

Monetary Policy – Decoupling of payment systems from money creation and credit mediation

• Bank Bailouts: Let the banks burn.
• The banking system cannot be stabilized, because it is built upon faulty financial principles.
• We cannot entrust our payment system with private bankers who take risks and then hold us to ransom because they are failing.
• Every citizen should have a Digital Wallet sitting on the ledger of the Central Bank.
• Governments should spend the money into existence.

These included trade interaction, oil and energy industries, technical and engineering sectors and house construction. After more than 12 years of war, much of Syria’s housing infrastructure has been destroyed. Rebuilding these homes would require immense effort and resources.The Islamic Republic of Iran has great experience in this field. Following the eight-year war that was unleashed against it through Iraq (1980-1988), many Iranian cities lay in ruin. The Islamic Republic got to work to rebuild its war-devastated cities without foreign help.In July-August 2006, following zionist Israel’s barbaric attack on Lebanon, especially south Beirut where hundreds of buildings were destroyed, it was the Islamic Republic that rebuilt them in cooperation with Hizbullah workers.Other areas where cooperation agreements were signed between Iran and Syria included railroad and air transportation, private sector, telecommunication, earthquake safety, rescue operation, and facilitation of pilgrimage. They also agreed to set up free trade zones as well as reduce tariffs.Agreements in the field of power generation and transmission, reviving Syria’s agricultural, industrial and energy sectors were also signed. Trade between the two countries would be facilitated by setting up a joint bank and an insurance company. Expansion of trade would require expanding transit facilities between Iran, Iraq, and Syria. Iraq would act as a bridge.

BRICS has it’s own objectives

Digitaldinar

Al-Saud out, Oil to be sold in Dinars.

What is a market?

• Market, according to Al-Ghazali, evolve due to natural forces, as part of the natural order of things -as such it is an expression of self-motivated human desires to voluntarily satisfy mutual economic needs (Ghazanfar and Islahi, 1997).
• Market –is an actual place where buyers and sellers could engage in face-to-face/online bargaining. A market should be thought off as a mechanism by which buyer, and sellers can determine prices and exchange goods and services.
• Market are constantly solving the what, how and for whom. As they balance all the forces operating on the economy, markets are finding an equilibrium of SUPPLY AND DEMAND.

Market should be seen as a platform for honest and trustworthy transactions

• In Islam, mutual consent is a necessary condition for acceptable transactions. Buyers and sellers must wilfully consider the interest of one another in their pursuit to achieve personal interest.
• Trading must also satisfy three interrelated conditions namely personal benefits, social benefits and fairness.
• Profit making is allowed but should reflect a compassionate and benevolent nature. Market operated with compassion and benevolence will have different results than the one driven by profit and self-satisfaction (Reda, 2013).
• A profit-driven trading encourages unhealthy competition, envy and enmity . Hence, in an Islamic setting, the ultimate goal in engaging in any transactions is to achieve the blessings of Allah and ‘profit’ in the hereafter.

The role of price

• In a market that operates freely without any external interference
• In Islam, freedom of trade and operation of market forces are highly encouraged and the market is allowed to set the prices.
• Prices–serve as signals to producers and consumers. If consumers want more of any good, the Psending a signal to producers that more supply is needed. E.g. Bus service during Eid.
• If a commodity becomes over-stocked –dealers and producers will
  • lower prices –to reduce their inventory –consumers will demand
  • Producers will supply
• As a result, there will be a balance, or equilibrium between buyers & sellers will be restored.
• What is true of the markets for consumer goods is also true for factors of production, such as land, capital and labour

Government’s Intervention in the market

• Objective: to assist producers
• Objective: to assist consumers

Can prices be set in Islam?

• Prophet limited interference in the market –especially if the action could affect public interest
• When Prophet was asked to intervene in setting prices in the market –he said –“I will not set such precedence, let the people carry on their activities and benefit mutually” (Abubakr, 1999).
• Nevertheless, government’s intervention in the market is justified in exceptional cases –to protect public interest but must ensure just price.
• Fixation of price by merchants with the objective of making huge profit is prohibited –a few merchants met outside the city and purchased all agricultural products with the intention to sell in the market at high price –Prophet condemned this practice because it causes harm and hardship to the society.