People Misery Caused by Riba and Inflation
Misery Index is an economic indicator which was introduced by Professor Arthur Melvin Okun, economist from Yale University. This index is initially simple sum of the inflation rate and unemployment rate in one country – two things that reflect the social and economic costs of a country.
Index was later modified by Professor Robert Joseph Barro from Harvard University with the added element of bank interest rates and the Gross Domestic Product (GDP) to see the dynamics of the community suffering from time to time. Index that has changed is then called Modified Misery Index.
In America, the Index is easily used to assess quantitatively whether a president could be prosperity of the people during his rule, or vice versa. Ronald Reagan in his first reign as president was recorded as the most prosperous people (Index = – 4.90), while Jimmy Carter was recorded as the president of the most miserable people (index = + 9:40).
For Indonesia, the world economists in particular have seen 'interest' in Indonesia is Prof.. Steve H. Hank is at the end of the New Order government in 1998 had talked intensively with Indonesian president at that time with the idea of Currency Board System him.
Observations and data in two decades economists gathered by this one, the Indonesian people is still as miserable as the conditions in the 80's and 90's. Indeed, we recovered from the top of the monetary crisis that is famous for the monetary crisis in year 1998, but this recovery does not make Indonesia better than before the monetary crisis.
The graph above represents the sum of interest rates, inflation rates, and reduced the unemployment rate and GDP change year on year – illustrates the level of suffering people of Indonesia from time to time. The higher the Index, the more miserable people.
Modified Misery Index theory is true also illustrates that the higher the interest rate (usury) and the inflation prevailing in a country, the more miserable people in the country. Conversely the lower the interest rates (usury) and the lower inflation – the more affluent people in the country.
So obvious is not it?, That the prosperity of the people for the interest rate (usury) should be suppressed as low as possible – and this can only be done if a country is left usury.
So it is that inflation also should be suppressed as low as possible, and this can only happen if the money in a country not easily print just – because inflation occurs by reason of printing money is not worth continuing with the transaction which requires the presence of real money. Only a gold coin (dinar) and silver (dirham) which has been proven for thousands of years of not experiencing inflation, because the Dinar and Dirham is the currency of the real thing – should really have to print the gold dinar and silver to print a dirham.
When two of the four elements of the Modified Misery Index is the interest rate and inflation was solved by the abandonment of usury and the use of Dinar and Dirham; the government's duty to stay two just to create wealth – that is to create jobs and focus on economic growth (GDP).
So the test of any economic theory, the system of Islam which was born from the instructions the All-Knowing – proved the most suitable and easy to create prosperity for the people of all ages. Shall we doubt it?
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