The Somali Shilling must go

[Padishah]

The Gold Standard regulates itself. That's why its been the money of choice for 6,000 odd years. Historically, monetary debasement (inherent in fiat) has always led the collapse of an economy; Ancient Rome is a good example.

[James Dahl]

The gold standard is good for currency stability, but for credit-based economies it can lead to panic runs on banking institutions and gigantic economic collapses, and is only good for societies that do not do much (or any) financial speculation.

When speculative investment started in earnest in the late 1600s under the Gold Standard, there was a europe-wide (and later world-wide) economic collapse every 20 years until 1929, when the gold standard was finally abandoned and a more flexible system was introduced, that has made economic crises more manageable and less apocalyptic, with the caveat that inflation has basically never stopped since then.

[King-of-Awdal]

You know, as a nongovernmental currency it could even be made into THE Somali currency, by issuing the currency in NFD, Somaliland, Djibouti and Ogaden.

YOU BASTRAD KEEP UR MOUTH OFF DJIBOUTI. WE ARE AN INDEPENDANT NATIONA AND ALREADY HAVE OUR OWN CURRENCY.

[FAH1223]

You know, as a nongovernmental currency it could even be made into THE Somali currency, by issuing the currency in NFD, Somaliland, Djibouti and Ogaden.

YOU BASTRAD KEEP UR MOUTH OFF DJIBOUTI. WE ARE AN INDEPENDANT NATIONA AND ALREADY HAVE OUR OWN CURRENCY.

no one cares for francs

[Goljano Lion]

You know, as a nongovernmental currency it could even be made into THE Somali currency, by issuing the currency in NFD, Somaliland, Djibouti and Ogaden.

YOU BASTRAD KEEP UR MOUTH OFF DJIBOUTI. WE ARE AN INDEPENDANT NATIONA AND ALREADY HAVE OUR OWN CURRENCY.

no one cares for francs

wallahi ninkii King of Awdal xayraan buu soo baxay

[King-of-Awdal]

You know, as a nongovernmental currency it could even be made into THE Somali currency, by issuing the currency in NFD, Somaliland, Djibouti and Ogaden.

YOU BASTRAD KEEP UR MOUTH OFF DJIBOUTI. WE ARE AN INDEPENDANT NATIONA AND ALREADY HAVE OUR OWN CURRENCY.

no one cares for francs

Who cares about a shilling that is worthless.

[gurey25]

Central reserve banks are vital to economic stability. The British and Americans learned that one the hard way in the 19th and 20th centuries. When the sh*t hits the fan the only thing that stands between the economy and complete economic meltdown is the central reserve bank.

They don't have to be structured in a way that is usurious and therefore haram, as in this case the primary task of the Reserve Bank of Somalia is being an Economic White Knight and issuing and managing currency. The fact that the US Federal Reserve also sets interest rates doesn't mean the Somali Reserve Bank has to.

You can have a central reserve bank without usury.

James did you just say that you can have a central reserve without usury?
its like saying you cn breath without air.

usury is inbuilt with the system, the reserve bank lends money out on interest and creates "money"

basically most of the money supply is thus debt based and interest bearing.

this is xaram, specultaion is xaram and measures to prevent it will be welcomed by the population.

We do not have to resort to the current thinking that is brainwashed into the people today.


All that somalia needs is a stable interest free currency.
in that case gold is a good candidate.

and why stop there why not have community credit based currencies to compliment the system.(development and aid agencies have recently come onboard and support these)


i suggest you take a look at this excellent book by Bernard Lietaer "The Future of Money:
Creating New Wealth, Work, and a Wiser World"

[Ben Dover]

It is actually quite easy to create a society that averages 0% inflation

And why would you want that?

A "zero" percent inflation is not necessarily a good thing. Its good practice to maintain a natural rate of inflation dictated by market forces, much like the natural rate of unemployment.

[gurey25]

It is actually quite easy to create a society that averages 0% inflation

And why would you want that?

A "zero" percent inflation is not necessarily a good thing. Its good practice to maintain a natural rate of inflation dictated by market forces, much like the natural rate of unemployment.

you should not overply the role of market forces or the "invisible hand"

sk yourselve why there shouldnt be 0% inflation and 0% unemployment or as close to it as socially and phyiscally possible?

[Ben Dover]

One of the very first things you learn in any Economics class is the demand and supply curve. If there is demand for your currency the equilibrium (price) level of it is pushed up hence it increases in value. Simple.

Depending on which school of thought you follow, you could argue that a forced zero percent inflation pushes the natural unemployment rate higher.

[gurey25]

supply and demand curve is basic economics and is fundemental

but..


you are still thinking inside the box.
you are still thinking as if you are operating in a fractional reserve system,

you are talking about raising or lowering interest rates,\

and i am talking about doing away with interest altogether.

[Ben Dover]

We cant allow a renegade system to manage our economy Gurey, its too experimental.

There is no doing away with interest. Where are you going to get money from?

IMF? WB?

How are you going to pay them back?

How would you manage the currency? Using what tools?

Inflation? How do keep it low?

[gurey25]

walaal

why not be experimental?
somalia and even somalilands financial system is so much of a mess, nothing can make it worse.

you see we are luckier than many countries things cannot get anyworse, so we can try new
ideas, or old ideas that we have forgoten about.

There is no need to borrow any money from the IMF/WORLD bank.

money should be a means of exchange.

why not start from something simple.. like gold.


or better yet.

print and circulate into the economy curreny and have it backed by a basket of currencies and gold.

how do you circulate it?

how about loaning it out as micro-credit or to businesses or spend it in work making infrastaructure projects like roads, wells , housing. etc.

[Ben Dover]

lol, Gurey, how do you plan on getting the money to begin with?

If you dont want to borrow, how are you going to raise capital?

[James Dahl]

lol, Gurey, how do you plan on getting the money to begin with?

If you dont want to borrow, how are you going to raise capital?

Remittances in US currency are used to buy gold, and then banknotes backed by that gold get issued to the receiver. I said this in the first post.
Essentially, the Somali equivalent of the Liberty Dollar.
This is why it does not require usury, as it is not a fiat currency.