Man and Money: Towards an Alternative Basis of Credit

by the late Shaikh Mahmud Ahmad, Mahmud Ahmad

This explores the possibility of evolving an alternative framework of capital and credit availability that excludes reliance on either interest or any subterfuge for interest. The product of a lifetime's work, the book points the way toward a market economy without exploitation, where liberty
and social justice can coexist.

Genres: Finance

550 pages, Hardcover

First published January 1, 1995

Reviews

[Omar Saeed · Rating 5 out of 5]

excellent

[Mohd Aquib]

I want to read

[Muneeb · Rating 4 out of 5]

The book thoroughly explains the functioning of modern economy in the context of modern conventional banking, government fiscal policies, foreign exchange, investments, capital and resources, interest based lending and borrowing along with the role of interest in rising inflation and unemployment. It also discusses how modern economics has confused the term 'profit' with 'interest'. The author also argues that historically and empirically there is bo solid ground to distinguish between legitimate 'interest' and unjust 'usury'. How imbalance of capital, resources, and trade in developed and developing countries increase in the plight of third world in addition to interest bearing loans with never-ending principal amount. With institutes like IMF nad World Bank, thirld world countries also come under direct or indirect influence of financially strong countries and they dictate their fiscal policies as well as political policies in some cases.

It also suggests that current economic system by default supports the rentier who is only their to exploit others as much as possible. Author also focuses on Keynesian economics and specifically emphasize the 'euthanasia of rentier' concept throughout the book. The author discusses multiple available alternatives to interest-based credit and evolves TMCL (Time Money Counter Loan) as a theoretical alternative to current basis of credit.

Finally, the author establishes that currently money precedes the freedom of man. In other words money is given priority over the sanctitiy of human freedom. E.g. In war, government motivates men to give the sacrifice of their life (most valuable possession for anyone) but the rentier still benefits monetarily from interest-based war finance even though the capital he has is given by his homeland which is in a war and needs capital to finance a war. If a soldier can give his life, why a rentier is not motivated enough or not even expected of a sacrifice for his homeland. Author brings this point to counter the expected argument of inavailability of war finance if interest based credit and bank reserve are to be abolished. Therefore we need to devise ane economic system which ensures the freedom of man and also finances the creative endeavors appropriately without exploitation.

Overall, the best thing in the book was that author acknowledged at various points that his judgment may be clouded and this is not a final verdict. He also told at places where dependable statistics or reports were not available and author relied either on his own judgement or expert advice.

We can argue as much as we want about the workability of alternative basis of credit proposed by the author but the author deserves appreciation for such a thorough explanation of economics and banking.