World Banking What if Iran brought its money to the table?

I have just read throught the thread on who owns the US National Debt and had a quick lesson in the technicalities, which was fascinating. However it raised a question for me regarding Iran.

The Central Bank of the Islamic Republic of Iran is run along Shariah Law and therefore Usury is outlawed. Some interest is charged but it is based up on agreement and when it is imposed no penalties are made for late payments etc.

The Iranian currency is backed by the Iranian Crown Jewels, Gold and 'Hard Currency'.

Now this is my question, if Iran were to abandon banking by Shariah Law and thus allowing it to act in the 'free-market' what would it be bringing to the 'credit market' and would it have a significant impact.

Their value at M1 aggregate is $71.7billion and at M2 $153.6 billion.

So what would it be at M3 (like the US) or even on M4 (like the UK)?

Any help with this would be most gratefully received.

Not sure where to put this thread so I am sticking with the same board that the US Debt question was on, if it needs to be moved no problem.

What would the incentive be for anyone to work with or invest with or have financial services with a country that NATIONALIZED billions of dollars of other people's money.

That means that Iran stole a lot of money that ruins credibility - no one would care if they gave 0% interest loans, you'd never know when their money would become worthless and they'd not pay your loan in full in tangible assets backing their currency (oil or the crown jewels etc).

They have no credibility so no power in the world market aside from cartel dealings.

I don't really know whether my question has in anyway been answered. Not sure about the stealing/nationalisation of others money or whether it makes them worthless. Can anyone actually provide a clear answer to my original question? It is not loaded, I'm simply curious as to how the system works.

Cheers

What's the question exactly? How what works?

Isn't Iran banning the use of the US Dollar on the 21st of March? Anyone caught with it will be sent to jail. Or is this just rumour?

The Iranian currency is backed by the Iranian Crown Jewels, Gold and 'Hard Currency'.

Now this is my question, if Iran were to abandon banking by Shariah Law and thus allowing it to act in the 'free-market'

I think that to get it into the free market would require more than you are presuming.

Before they could even consider getting on the free market, they would have to get around this little problem.

And their other internal problems.

Thanks for the replies. I was just asking theoretically how the equations of M3 and M4 actually work with an economy not in the free market.

I have come to realise it is an impossible question to answer.

Iran is being squeezed left and right, I am sure that there are greater reasons for this than those that the press report. I realise now that the figures quoted are not that great in the international monetary scheme of things - so I doubt it is about their monetary wealth, but Shariah Law is an impedement to free-trade and I think that is a factor.

If it was simply about oppressive regimes then why is the ILA registered as a terrorist organisation by the US and 'officially' refused funding.

Yes the Nuclear issue is a huge factor in stamping on Iran but if I was Iran and Israel was my enemy, I'd want a nuclear deterrent too or at least some reassurance that those powers that seek to deny me those deterrents that they were willing to step in and help when push comes to shove.

It all sounds to me like excuses for stamping on a country that is trying to preserve its way of life. A way of life that is contrary to capitalism and closed to exploitation.

As bad as everyone makes Iran out to be, what really is going on? What does Iran have that everyone wants?

Its more than possible I am being naive and I am more than willing to concede that point but I am struggling to find one good solid reason for the hard line approach to Iran other than that it is not westernised and that the west is indignant that they got kicked out.