The Return of the Gold Dinar
by Umar Ibrahim Vadillo
Posted on 11/18/2002 7:31:47 PM PST by 2sheep
by Umar Ibrahim Vadillo
The Muslim world has found a novel way to strike back at the West – or at least at Western bankers who rule the world's currencies – introduce a gold coin. Malaysia expects to use gold dinars to trade only between Islamic countries beginning in 2003. The gold dinar, which is 4.25 grams of 24-carat gold, would unite Muslim nations who blame "greedy" currency traders for Asia's downfall in the economic crisis of 1997–98. There is also a silver Islamic Dirham coin of 3.0 grams silver. The dinar is being privately used in 22 countries and is minted in 4 countries. 
The Malaysian premier, Prime Minister Mahathir Modamad, last year proposed that the gold dinar would eliminate paper money which has no intrinsic value and would cease making exchange rates arbitrary and subject to manipulation as seen during the Asian financial crisis. "The risk of speculation can be reduced to almost nothing. World trade can actually expand because the cost of business will be much reduced as the need to hedge will practically disappear," said Modamad.
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The Islamic world has historically used a gold coin, the Dinar. Imad-ad-Dean Ahmad says "Muslims cannot escape the fact that gold is our money. Instead of fighting the will of Allah, I propose that we embrace it. If the one billion Muslims of the world would use gold as their unit of account the volatility would stabilize."
The dollar, franc, mark, pound, rupee, and all the other currencies of the world are called fiat currencies, that is, they are paper money made legal by law or fiat, although not backed by gold or silver and not necessarily redeemable in coin.
The result of a gold-backed currency in the world could cause the US dollar to crash in value. Some suggest the gold dinar would cause a shift in economic power from the West to the East. Trading in Islamic dinars is also planned to open up on the Internet.
November 13, 2002
Bill Sardi [send him mail] is an investigative journalist writing from San Dimas, California. His public affairs website is www.shadownews.org.
Copyright © 2002 Bill Sardi Word of Knowledge Agency, San Dimas, California. Not for commercial reproduction without permission of the author.
What is obvious?
Yes, you're in trouble now, or soon will be. Stop with the sarcasm and read the following. The link to the article in post #14 has been posted on FR here:
>>> Allah and the Real-World-Order <<<
What is obvious?
Money can be stolen irrespective of it's media. Your argument against gold as money is an argument against carrying money, nothing more...
"the gold dinar would eliminate paper money"
And electronic transactions.
"the gold dinar would eliminate paper money"
And electronic transactions.
They are mistaken in assuming that backing their currencies with gold would eliminate paper money(which originally served simply as convenient proof of gold deposits), unless via local government dictate. Why do you assume that electronic transactions would be eliminated?
Promissory notes, only. Gold must change hands, and immediately to avoid usury. That is the goal - to eliminate usury.
Gold backed money limits undue credit expansion, and their correlative recessions. We're in the midst of the correction of the largest credit expansion in history. Enjoy the ride your fiat currency is delivering.
"A fully free banking system and fully consistent gold standard have not as yet been achieved. But prior to World War I, the banking system in the United States (and in most of the world) was based on gold, and even though governments intervened occasionally, banking was more free than controlled. Periodically, as a result of overly rapid credit expansion, banks became loaned up to the limit of their gold reserves, interest rates rose sharply, new credit was cut off, and the economy went into a sharp, but short-lived recession. (Compared with the depressions of 1920 and 1932, the pre-World War I business declines were mild indeed.) It was limited gold reserves that stopped the unbalanced expansions of business activity, before they could develop into the post- World War I type of disaster. The readjustment periods were short and the economies quickly reestablished a sound basis to resume expansion."
Alan Greenspan - Gold and Economic Freedom
BTW inflation can occur under the gold standard as the history of Europe after the arrival of metals from the New World illustrates. Gold imports destroyed the Spanish economy and eventually led to the destruction of the empire.
The gold in and of itself did not undermine the economy of Spain anymore than increased numbers of TV's or cars would wreck the American economy. True, gold's relative value will flucuate more rapidly with a large infusion as was witnessed during Spain's initial conquests and theft in the New World, but it was government spending, on a scale not supportable without the one time infusion becoming a stream, that wrecked the Spanish economy. In a sense, it's not much different than the problem facing California legislators after they hiked spending on top of the tech boom's tax reciepts. Do you expect anyone to stumble upon another tribe of Indians sitting on heretofore unknown gold reserves in sufficient quantities to existing supplies to seriously impact the pricing power of gold? Is that your argument?
Every gold strike does the same thing that a counterfeiter does by increasing the money supply arbitrarily.
A gold strike would serve to raise the value of gold, but not arbitrarily. It would do so in exact relation to the percieved alteration of new gold supplies. What is arbitrary is how much the value of your paper dollars will decline when Congress meets next, or the Fed decides to "inject liquidity".
Promissory notes, only. Gold must change hands, and immediately to avoid usury. That is the goal - to eliminate usury.
Sorry, I was speaking of gold backed money in general, and not to the plan promulgated by the Islamicists. Eliminating usury is senseless and counterproductive, much like sticking with government fiat money.
Gee , I take back everything I have ever said about these people. They sure are nice , dumb , but nice.........
So you're saying it was convertible, or it wasn't? Because from the point of view of all of us non-Swiss, if they'll convert their money into gold, you got a convertible currency. And that opens them up to all sorts of vulnerabilities to well-financed currency speculators.
The Swiss situation was similar, but not identical. In the heyday of the 'Gnomes of Zurich', the early 1970s, the Swiss routinely blocked (that is, put up as security) the nation's gold reserves in international transactions, sometimes very dicey ones too. Might as well get some use from all that gold in the vaults, right?
I'm not criming the Swiss, here; British and American bankers have historically been AT LEAST as shady, but the Swiss had a tool that the Brits did not, namely gold. And they used it to very good effect...as long as the game lasted.
Nothing against gold, but if we're rational, we must wonder why the assorted central banks have entered into a compact to restrict their own gold sales to, what is it, I forget, something on the order of 400 tons per year.
Naturally, as any self-respecting gold bug will tell you, it's all just a gigantic conspiracy to rule the world, or send us all into socialism, or enslave us to the Illuminati. I've never really figured out which. If you happen to know (and you might, why not), please advise.
FRegards! .
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