LONG TERM LOANS AND DEBT

The erosion of money by inflation creates a huge problem when the loan/debt is repaid after many years. For example, R4000 20 years ago could buy one ounce of gold while today the price of gold is R30000 per ounce. Therefore, repaying the R4000 given 20 years ago with today’s R4000 notes is a mockery of reality. The creditor’s Haqq (Right) is not discharged.
If R4000 could purchase one ounce of gold 20 years ago, then this loan if paid after 20 years, should be repaid with the number of rands which can procure one ounce of gold or should be paid with actual gold coins.
To overcome this imbroglio, it is necessary when giving loans to advance the loan in terms of gold, and it will be best to give actual gold coins. When the loan is repaid, it should be paid with the same number of gold coins or with sufficient currency notes to buy the requisite number of gold coins.

THE MAJLIS VOL 26 NO. 07