LETS TALK ECONOMICS: I WILL BE ANSWERING ECON 101 QUESTIONS

F

Farjano-Walad

RasCanjero said:
Sxb appreciate the in-depth answer. Will download and check them out properly when I'm free later.

Had another question which is a bit more towards economic theory.

Don't need a correct answer just your thoughts since from what I've gotten from your recordings so far is that you've thought about our future economic options.

Question is what implications are there to our productivity and competitiveness in Somalia or the Muslim world in general without the use of riba.




Still have this view that Islamic finance is like a handicapped version of haram finance.

Basically missing most the benefits since risk and incentives aren't aligned.

Most the rules out there today seem to put on as an afterthought to sell sukuk bonds which border the grey zone imo.



You seem to see the bigger picture behind it all and definitely more familiar with the scholarary work underpinning it.

How can we integrate into the wider global capital markets with one arm tied behind our back.

Not only would we struggle to keep pace but we'll be outcompeted at every step by trade rivals who leverage to the hilt.

Either we realign incentives or lower risks through insurance through some lynchpin like an Islamic AIG.

It's not that the market isn't mature yet but from the little knowledge I have I don't see how we could make it more viable.

Another option is to isolate but that isn't realistic even if a dozen Muslim countries joined us.
Click to expand...
 
R

Ras

It's all so tiresome
VIP

@Teeri-Alpha-Kismayo

I should've worded my question differently but was still super insightful.

Could you do a 101 on Mudharabah (profit sharing) and Musharakah (joint venture) financing for business loans.

Mainly interested in this one question:

How would the future of shariah finance play out in regards to the makeup of the financial industry in Somalia ignoring FDI and foreign loans for now.

Would banks end up as massive conglomerates who own large equity positions in most businesses in the country?

Also, you mentioned that collateral is haram which I wasn't aware of.

Equity is great but not valuable in every case. What makes riba so attractive is the guaranteed income..hence the fixed income moniker.

Essentially the questionon is how exactly you think shariah compliant commerical loans would work in Somalia's near future and what this would mean for the financial sector or companies involved in lending.
 
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Rageedi

Rageedi

Life | Liberty | Property
Teeri-Alpha-Kismayo said:
so insha Allah i will combine the Islamic finance part with the answers for @Khalid ali and @RasCanjero since they are the same themed Questions

but here is your answer about what is best day trading or long term investing

sorry for the delay bro, been painting the house lately,

answers for what is best day trading or long term investing

Click to expand...
Thanks for the answer, currently don't have enough money saved to trade but I would still appreciate it if you would link the material you mentioned in the voice note about forex trading. What do you think trading cryptocurrency as an asset, a lot of libertarians who follow Austrian recommend buying both crypto and gold and silver, also would it be a good idea to combine algo trading with forex? I have heard that algo trading is much faster and accurate to trade with because of the algorithms.
Edit: You said that I should focus on one asset and master it which makes good sense, however, many financial gurus advocate for diversification of assets, so which is better?
assets diversify.jpg
 
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F

Farjano-Walad

Rageedi said:
Thanks for the answer, currently don't have enough money saved to trade but I would still appreciate it if you would link the material you mentioned in the voice note about forex trading. What do you think trading cryptocurrency as an asset, a lot of libertarians who follow Austrian recommend buying both crypto and gold and silver, also would it be a good idea to combine algo trading with forex? I have heard that algo trading is much faster and accurate to trade with because of the algorithms.
Edit: You said that I should focus on one asset and master it which makes good sense, however, many financial gurus advocate for diversification of assets, so which is better?
View attachment 134011
Click to expand...


as soon as admin allows me to send messages, i will message you on PM for more details bro, thanks,
 
F

Farjano-Walad

Rageedi said:
Thanks for the answer, currently don't have enough money saved to trade but I would still appreciate it if you would link the material you mentioned in the voice note about forex trading. What do you think trading cryptocurrency as an asset, a lot of libertarians who follow Austrian recommend buying both crypto and gold and silver, also would it be a good idea to combine algo trading with forex? I have heard that algo trading is much faster and accurate to trade with because of the algorithms.
Edit: You said that I should focus on one asset and master it which makes good sense, however, many financial gurus advocate for diversification of assets, so which is better?
View attachment 134011
Click to expand...

 
F

Farjano-Walad

RasCanjero said:
@Teeri-Alpha-Kismayo

Also had this crazy idea on how we could potentially stabilize our central bank.

Like with everything else you have to give something up to gain something.

The idea revolves around losing some sovereignty by outsourcing the central bank to a private organization in the west.





They'll have a mandate to rapidly grow our GDP and support our governments long term fiscal roadmaps just like China's 5 year plans.

In return they get paid fat commissions by managing our sovereign wealth funds.

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The US and a lot of other places essentially already have something like this in place but they're all domestic banks.

Our government can't just fire them and regain control unless they breach certain rules or fail to perform.

If they do; they get fined a decent percentage of our sovereign wealth fund and foreign currency reserves that they'll also be managing...i.e. collateral.

The whole point behind this idea is to bring in an army of highly competent custodians of our currency and the levers they hold to grow our economy.

We do have some smart qualified Geeljire around but they'll also need to have some stubborn level integrity and be as courageous as the men of our past.

You'd be lucky to find a dozen of them and most would still need a couple decades to gain the maturity and experience required for this responsibility.


Temporarily outsourcing the Central Bank could instantly gain us all the human resources required, front seat views for our domestic managers in-training to the highest levels of operators in their fields and more importantly...

Gain a strong ally in the west that has their incentives aligned with us.

They could easily get their own institutional LPs to invest in Somalia since it would directly benefit their bottom line. Then we'd pull more powerful friends onto our bandwagon.

If our own geeljire managers fucked us; all we could do is fire them but we could sue this private company to the moon.

Each option has it's own drawbacks and benefits but this could at least give us a decade of stability until those old fockers in charge retire.
Click to expand...



sorry long but very comprehensive answers for all your points very rich in detail and hope that helps,
 
F

Farjano-Walad

@RasCanjero we do not need a central bank

mises.org

Panama Has No Central Bank |

For a real-world example of how a system of market-chosen monetary policy would work in the absence of a central bank, one need not look to the past, writes David Saied. An example exists in present-day Central America, in the Republic of Panama, a country that has lived without a central bank...
mises.org mises.org

mises.org

Central Banks Enrich a Select Few at the Expense of Many |

The message unanimously churned out by politicians, central bankers, and ‘mainstream’ economists is that central banks are there for the ‘greater good’. They provide the economy with sufficient money and credit, and they fight inflation, thereby supporting output and employment growth.
mises.org mises.org


mises.org

Five Reasons for Central Banks: Are They Any Good? |

In a time when Federal Reserve reforms are discussed more openly than ever before, it seems appropriate to also think about the more fundamental question of whether central banks are needed in the first place. In 1936, Vera C.
mises.org mises.org
 
F

Farjano-Walad

RasCanjero said:
Sxb appreciate the in-depth answer. Will download and check them out properly when I'm free later.

Had another question which is a bit more towards economic theory.

Don't need a correct answer just your thoughts since from what I've gotten from your recordings so far is that you've thought about our future economic options.

Question is what implications are there to our productivity and competitiveness in Somalia or the Muslim world in general without the use of riba.

Still have this view that Islamic finance is like a handicapped version of haram finance.

Basically missing most the benefits since risk and incentives aren't aligned.

Most the rules out there today seem to put on as an afterthought to sell sukuk bonds which border the grey zone imo.

You seem to see the bigger picture behind it all and definitely more familiar with the scholarary work underpinning it.

How can we integrate into the wider global capital markets with one arm tied behind our back.

Not only would we struggle to keep pace but we'll be outcompeted at every step by trade rivals who leverage to the hilt.

Either we realign incentives or lower risks through insurance through some lynchpin like an Islamic AIG.

It's not that the market isn't mature yet but from the little knowledge I have I don't see how we could make it more viable.

Another option is to isolate but that isn't realistic even if a dozen Muslim countries joined us.
Click to expand...
Rageedi said:
what about algo trading? would it be more efficient to trade currencies with algorithms?
Click to expand...
Rageedi said:
what about algo trading? would it be more efficient to trade currencies with algorithms?
Click to expand...


 
F

Farjano-Walad

RasCanjero said:
Sxb appreciate the in-depth answer. Will download and check them out properly when I'm free later.

Had another question which is a bit more towards economic theory.

Don't need a correct answer just your thoughts since from what I've gotten from your recordings so far is that you've thought about our future economic options.

Question is what implications are there to our productivity and competitiveness in Somalia or the Muslim world in general without the use of riba.

Still have this view that Islamic finance is like a handicapped version of haram finance.

Basically missing most the benefits since risk and incentives aren't aligned.

Most the rules out there today seem to put on as an afterthought to sell sukuk bonds which border the grey zone imo.

You seem to see the bigger picture behind it all and definitely more familiar with the scholarary work underpinning it.

How can we integrate into the wider global capital markets with one arm tied behind our back.

Not only would we struggle to keep pace but we'll be outcompeted at every step by trade rivals who leverage to the hilt.

Either we realign incentives or lower risks through insurance through some lynchpin like an Islamic AIG.

It's not that the market isn't mature yet but from the little knowledge I have I don't see how we could make it more viable.

Another option is to isolate but that isn't realistic even if a dozen Muslim countries joined us.
Click to expand...
Rageedi said:
what about algo trading? would it be more efficient to trade currencies with algorithms?
Click to expand...


 
F

Farjano-Walad

@Khalid ali and @RasCanjero


Islamic finance and how it will work, how islamic banks will make money
RasCanjero said:
@Teeri-Alpha-Kismayo

I should've worded my question differently but was still super insightful.

Could you do a 101 on Mudharabah (profit sharing) and Musharakah (joint venture) financing for business loans.

Mainly interested in this one question:

How would the future of shariah finance play out in regards to the makeup of the financial industry in Somalia ignoring FDI and foreign loans for now.

Would banks end up as massive conglomerates who own large equity positions in most businesses in the country?

Also, you mentioned that collateral is haram which I wasn't aware of.

Equity is great but not valuable in every case. What makes riba so attractive is the guaranteed income..hence the fixed income moniker.

Essentially the questionon is how exactly you think shariah compliant commerical loans would work in Somalia's near future and what this would mean for the financial sector or companies involved in lending.
Click to expand...

mudaraba and musharka :






 
F

Farjano-Walad

Thank you guys, i think i have answered all he questions,

let us know if there are anything else,

phewww, literally took out a good few hours to answered all of the questions i have not had time fo in the last few days,, but it was worth it,

thanks lads,
 
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