The Problem With Speculative Trading

Updated: May 8

Just thinking out loud


It is common knowledge that Muslims don’t engage in speculative trading. Most, being ignorant of macroeconomics, think it is merely a religious principle. Today, we have reached a point that minor speculation can take down entire nations. Big trade balances, transnational lines of credits, derivatives, index funds, and other similar transactions and products have sewed up the fate of global markets. One tweet by Warren Buffer or another of the like can make or break the market. Some think that gambling or speculative trading can harm only those who are invested. That’s why we don’t see anything wrong with a man's losing money in a casino. What if everyone is at the casino and the amount invested is a huge chunk of a nation’s money supply? We are no longer looking at individual gamblers losing or winning. We are looking at a giant butterfly flapping its wind causing tornadoes all over the planet or a star exploding and shaking the very fabric of space with strong gravity waves.


What is sold as diversification is really a giant game of dominoes. The more diversified (widely invested) people get, the more they are prone to fall together when central planners want them to. Liquidity is getting increasingly more centralized. Some are buying from corporations. Others are investing in them. These corporations invest in one another. And apparently, no one sees this centralization of power. A few now have so much liquidity that they don't know where to invest. The rest have no liquidity or are in debt. Is it all a surprise? The central planner knows the secrets. He owns the casino. By showing the growth in diversified portfolios, he has lured gamblers in.


The more sewed up global markets get, the more enslaved they all get together. The greed for money will turn all humanity into slaves to the casino owner. Perhaps, this is exactly what they deserve.


Update on Nov 7, 2020 -


I have a problem with forex, too. By trading a tool of tyranny (a legal tender), you are only perpetuating the myth of money. You are only aiding your masters. If you want the world to be free, come up with alternate ways so people don't have to rely on paper money. Do things that free the world, not enslave it.



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