In Response of Mr Zaid Hamid Program BrassTaks Episode: Economic Terrorism

So I was watching Mr Zaid Hamid's famous program Brasstaks in which he was claiming with historical references about the economic system of the world. In this he was mentioning the issues people had with representative money with different banks giving paper certificates to represent the amount of gold present in the bank. Then he identify the issue that these certificates circulating today don't have the gold backing as they are claiming. Though its a very long discussion but the main issue which I think all readers will agree right now in the discussion was that the paper currency is backed by the gold or silver metals which these big banks like federal reserve bank has taken and actually there is not enough gold for them to return and we should get our gold back from these Bankers.
Now lets start from the first catch, "There is no currency in the World right now which is backed by Gold or Silver". Surprised!
You people might be thinking that this is wrong but you got google to search it. Gold these days or I can say for last many decades is a separate identity a separate metal. The Gold Standard as it is known came to an end in most part of the world in 1971 due to measures taken by President Nixon of United States known as Nixon Shock. This leads to many countries convert from Gold Standard to the Standard of money present right now known as "FIAT System". In this system, the currency is not backed by gold but Fiat money achieves value because a government demands it in payment of taxes and says it should be used within the country as a tender (offering) to pay all debts. In effect, this validates it to be used to buy and sell goods and services and mandates it to pay tax. Where fiat money is used as currency, the term fiat currency is used. Today, most national currencies, including the major reserve currencies, i.e. US dollar, Euro and pound sterling are fiat currencies.
Though this single point in my view negate the whole presentation but we can continue pointing out many other wrong references. Lets see first regarding Federal Reserve Bank of USA; which according to the claim is a private own bank but sorry to disappoint it is not a private own bank and it is answerable to US Congress and US President who has the authority to select the board of Governors. This is according to the bank board of Governors: "It is not 'owned' by anyone and is 'not a private, profit-making institution'. Instead, it is an independent entity within the government, having both public purposes and private aspects."
Also despite the claim in the program, Federal Reserve Bank don't have the authority to print and mint the US Currency. Only the US Dept of Treasury which is headed by the Secretary of Treasury.
The Federal Reserve Bank have the following responsibilities:

1. Conducting the nation's monetary policy by influencing monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
2. Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system, and protect the credit rights of consumers
3. Maintaining stability of the financial system and containing systemic risk that may arise in financial markets
4. Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

and for all these actions they are answerable to US Congress which is elected by off course the people. All the claims done regarding Federal Bank were presented at the time when Aldrich Plan was presented in Congress and with the fears that this will give control of creating money to private own banks a committee was created in 1912 which investigated allegations against the "Money Trust" the band of people whom were assumed were behind the initial plan which contains most of the clause which Mr Zaid Hamid said. But this plan was rejected by Congress and a new bill was created and was passed which unlike the Aldrich plan which gave controlling interest to private bankers with only a small public presence, the new plan gave controlling interest to a public entity, the Federal Reserve Board, with a measure of autonomy to Reserve Banks which, for a period of time, were allowed to set their district's own discount rate. Also, instead of the proposed currency being an obligation of the private banks, the new Federal Reserve note was to be an obligation of the U.S. Treasury.

This is first of my posts showing people some of the actual facts. We are an developing Nation already loosing our identity and values but our Nation came into being due to Great People like Quaid-e-Azam Muhammad Ali Jinnah and Allama Iqbal who gave value to reason, to truth, to values, to logic and always wanted us to follow the right path. So how can we prosper without following their guidelines. We are Muslims who follow the last Prophet Muhammad Peace be Upon Him but how can we prosper when Islam told us to double check the claims of someone before agreeing on it. A word to remember...