Following a record high in the Euro 2 weeks ago, the currency is back down to a 2 month low. The European Central Bank (ECB) is expected to keep interest rates steady at 4% in a meeting later today.
“The euro may test lower below $1.52 over the next week as markets seek adjustments after the recent dollar selling and euro buying… The focus today is on the ECB. If Trichet makes hawkish comments as usual, the euro will be bought back at once.”
- Kengo Suzuki, Shinko Securities
The Euro/Kuwaiti Dinar rate today is 1 Euro for .410 fils
The euro is finally back down and oil is back up.
As the euro is evolving to the gold-euro
and
as US Fed Chairman Ben S. Bernanke is a lunatic,
who wants his Fed to pay interest on bank reserves,
there is something which does not square here.
The essence of the conventional commercial banking model is not riba, […]. It is riba plus gharar. (1)
Riba means usury and is forbidden in Islamic economic jurisprudence. According to some, this refers to excessive or exploitative charging of interest, though according to others, it refers to the concept of interest itself. (2)
Gharar is the sale of probable items whose existence or characteristics are not certain, due to the risky nature that makes the trade similar to gambling. (3)
Bernanke wants riba, plus gharar, PLUS LUNACY.
Indeed,
Bernanke wants his Fed to pay interest on bank reserves. (4)
[The] link between oil and the euro may weaken, it is not about to disappear, says the Financial Times today. (5)
Once
the world will be allowed to know that
the past three decades of cheap Arabian oil
have been made possible by the flow of cheap gold
to the Saudi Arabia oil-central bank
then
most will start to understand what the GOLD EURO really means.
Reuters reported last week Wednesday
that
Venezuela will not abandon the US dollar as a currency for oil sales, despite the Opec member’s trend toward asking for payments in euros for certain contracts (6)
and that
whereas in the past Iranian officials have said that oil remained priced in the US dollar but with actual payments carried out in other currencies,
an Iranian official was now quoted as saying that Iran is conducting ALL its crude trading in euro and yen, instead of the US dollar. (7)
Oil and gas for euro
simply because the euro is evolving into a GOLD EURO,
through the European Central Bank marking its gold reserves to market.
Others are still in denial:
Top officials also want to avoid dollar weakness reinforcing the rise in oil prices. They do not think the dollar is the main cause of the rise – oil has gained on days when the dollar has strengthened. But they agree that dollar weakness has at times contributed to oil’s strength. (
The question is not whether or not one is opposed to the dollar unit.
The question concerns the maladministration of the dollar unit by the colonial dollar-regime.
At the end of the day, this is no longer working in a globalising world.
Such a world requires “equilibrium” in order to continue functioning.
Hence,
the USA must continuously wage war in order to prevent the dollar-regime from being submitted to a closer examination
because
such an examination would result in its adaptation to reality.
Indeed,
the examination would reveal that the dollar-regime is based on electronic digits, not on real wealth.
Money in Islam must possess intrinsic value, says the Qur’an. (9)
“Abu Said al-Khudri reported Allah’s Messenger as saying: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates and salt for salt. (When a transaction is) like for like, payment being made on the spot, then if anyone gives more or asks more he has dealt in Riba, the receiver and giver being equally guilty.” (Sahih Muslim)
Real wealth,
such as gold, silver, wheat, barley, dates and salt,
can be distributed in an equitable way.
The electronic digits of the dollar regime are not real wealth
and are thus arbitrarily being divided.
In order to hide this truth, Bernanke wants his Fed to pay interest on bank reserves.
This is riba, plus gharar, PLUS LUNACY.
Starting with the question
“What is the rationale for the proposed unified currency within the GCC?”,
two senior figures involved in the European Union’s currency union are to discuss
what lessons can be applied in the move towards a GCC single currency
at the GCC Currency Forum 2008 on June 15, 2008 in Dubai. (10) (11)
It is to be hoped that they will urge OPEC to INCREASE the price of oil in order to punish those within the European Central Bank who are still prepared to support the dollar-regime.
On Friday May 02, 2008, some lunatics within the European Central bank have indeed found nothing better to do than to jointly intervene with the lunatic US Fed to pump an extra $82bn into the banking system. (12)
As I just said, it is to be hoped that the GCC Currency Forum 08 will
argue for an end to this lunacy,
by condemning intervention in currency markets,
so that oil can be priced in euro now.
Ivo Cerckel
NOTES
(1)
A discussion on current accounts
http://www.islamic-finance.com/item150_f.htm
SNIP
The following is the text of an email exchange that took place during the period September 2007 - March 2008 between an executive officer and Shari`ah advisor of an Islamic commercial bank and Tarek El Diwany regarding the fiqh position on bank current accounts, reproduced with the kind permission of those involved. The names of the bank and its employees have been changed to maintain confidentiality.
(2)
http://en.wikipedia.org/wiki/Riba
(3)
http://en.wikipedia.org/wiki/Islamic_banking
(4)
Bernanke Wants Fed to Pay Interest on Bank Reserves
http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aOm_fLe0pDxk
SNIP
May 7 (Bloomberg) — Federal Reserve Chairman Ben S. Bernanke, seeking ways to stabilize money markets, will ask Congress for authority to pay interest on commercial-bank reserves this year, a person familiar with the discussions said.
The central bank isn’t authorized by Congress to begin making such payments until 2011. Allowing interest on bank reserves may allow the Fed to pump more funds into the banking system without pushing its main policy rate lower, in effect separating action to boost liquidity from monetary policy.
(5)
The Short View: Euro and oil
By John Authers, Investment Editor
Published: May 7 2008 21:02 | Last updated: May 7 2008 21:02
http://www.ft.com/cms/s/0/1232f96e-1c5d-11dd-8bfc-000077b07658.html
(6)
UPDATE 2-Venezuela says will not abandon dlr in oil sales
http://www.reuters.com/article/oilRpt/idUSN3053405620080430
SNIP
CARACAS, April 30 (Reuters) - Venezuela will not abandon the dollar as a currency for oil sales, Energy Minister Rafael Ramirez said on Wednesday, despite the Opec member’s trend toward asking for payments in euros for certain contracts.
(7)
Iran conducts all crude trade in euro, yen -agency
Reuters - USA
http://www.reuters.com/article/oilRpt/idUSBLA02024820080430
SNIPS
TEHRAN, April 30 (Reuters) - Iran, the world’s fourth-largest oil producer, is conducting all its crude trading in euro and yen, instead of the U.S. dollar, an Iranian official was quoted as saying
+
In the past, Iranian officials have said that oil remained priced in the U.S. dollar but with actual payments carried out in other currencies.
(
Europe and US unite on stronger dollar
By Krishna Guha in Washington and Ralph Atkins in Frankfurt
Published: May 8 2008 02:01 | Last updated: May 8 2008 02:01
http://www.ft.com/cms/s/0/1f5097f2-1c6f-11dd-8bfc-000077b07658.html
(9)
Imran N. Hosein, “Explaining the Disappearance of Money with Intrinsic Value”, paper delivered at the International Conference on the Gold Dinar Economy, held in Kuala Lumpur, July 24-25, 2007
(10)
Experts to bring Euro perspective to Gulf
by Daniel Stanton on Sunday, 04 May 2008
http://www.arabianbusiness.com/518278
Two senior figures involved in the European Union’s currency union are to discuss what lessons can be applied in the move towards a GCC single currency.
(11)
GCC Currency Forum 2008
http://www.itp.net/events/gcccurrency08/
Arabian Banking & Finance is delighted to announce the launch of GCC Currency Forum 2008 on June 15, 2008 at The Monarch, Dubai, U.A.E.
(12)
From The Times
May 3, 2008
US Federal Reserve and European Central Bank pump an extra $82bn into banking system
Gary Duncan, Economics Editor
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3864287.ece?Submitted=true
SNIP
The US Federal Reserve and the European Central Bank united yesterday to open a new front in their battle to quell the persistent money market strains that are fuelling the global credit crunch.