New gold-backed currency could be in use next month – Daily Reckoning

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pahunkboy -> New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 11:31:03 AM)
The back from Iraq HFC- note how I said it is monetary policy which males war. HFC says that it is a market economy. So here we have an Islamic place switching to a gold backed currency. So watch how this is received by Goldman/JPM. This robbery we done to the 3rd world is being done to us now. Get your before the devaluation. ======================================== New gold-backed currency could be in use next month – Daily Reckoning “If information on its website is to be believed, the council has the blessing of the state’s Islamist government, Parti Islam SeMalaysia (Pas), to kickstart the dinar in three moves. First, the state will pay a quarter of its public servants’ salaries using the dinar. Second, all state companies will accept dinar payments. Lastly, some 600 commercial enterprises will also embrace this currency. “Inspired by selective religious sources and backed by historical precedents within the annals of Islamic history, the gold dinar system is touted by certain fiercely proud Muslims as the Islamic answer to thwart capitalism’s woes. “The idea was first mooted by Malaysia’s former prime minister, Mahathir Mohamad, in the aftermath of the 1997 Asian financial crisis. He argued that the coins would never hang their possessor out to dry in the same way that paper money had. As precious metals with intrinsic value, gold and silver are more resistant to market fluctuations and devaluation compared to the US dollar – an argument he took to the Organisation of the Islamic Conference as a tool to battle western hegemony.” In and of itself, choosing a gold-backed currency as a tool “to thwart capitalism’s woes” seems a bit wrongheaded. Its use could raise the ire of capitalist public accustomed to paper money, but there are many true-blue capitalists that would sing the praises of a gold-backed US dollar, for instance, given the opportunity. The concept of a gold-backed currency other than the dollar, in this case the dinar, could conceptually offer a threat to the dollar’s reserve currency resilience, but not without a global endorsement of its usefulness in international trade. Anything’s possible, but it seems unlikely even China, with its particular reserves quandary, is going to rush to support a Malaysian reserve currency anytime soon.

thornhappy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 11:49:39 AM)
An interesting conclusion in the Guardian article: "Like paper money, gold is also vulnerable to the manipulations of valuers, our gatekeepers of wealth. And let's be honest, how many of the poor have stacks of gold already in their possession? Gold is a precious metal precisely because it is so rare. On a wider scale, who is to prevent gold-rich nations from banding together as a cartel to fix prices at exorbitant amounts in the same way that the oil-producing nations of OPEC did? Or multimillion corporations from exploiting poor but gold-rich nations? This is best exemplified in the case of Pacific Rim, a Vancouver-based firm that has filed an appeal via the Central American Free Trade Agreement (Cafta) to bypass local legislation so they can mine for gold in El Salvador despite local objections. In a world mired by climate change troubles, one also needs to mind the environmental cost of gold mining – an operation that involves huge amounts of water and toxic chemicals. The Islamic gold dinar could not thwart capitalism's excesses. It is only providing one more avenue for exploitation. For this reason alone, it will not have my buy-in."

willbeurdaddy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:06:26 PM)
quote: ORIGINAL: pahunkboy . As precious metals with intrinsic value, gold and silver are more resistant to market fluctuations and devaluation compared to the US dollar – False. Nothing has "intrinsic value".

pahunkboy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:19:58 PM)
__ cool. I just bought some more silver. I got a great price.

EbonyWood -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:23:49 PM)
quote: ORIGINAL: pahunkboy __ cool. I just bought some more silver. I got a great price. All you need now is a new parrot and a wooden leg. Matey.

pahunkboy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:28:29 PM)
quote: ORIGINAL: EbonyWood quote: ORIGINAL: pahunkboy __ cool. I just bought some more silver. I got a great price. All you need now is a new parrot and a wooden leg. Matey. I would LOVE to have another parrot.

DCWoody -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:31:55 PM)
"As precious metals with intrinsic value" [:D]

EbonyWood -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:35:38 PM)
quote: ORIGINAL: pahunkboy quote: ORIGINAL: EbonyWood quote: ORIGINAL: pahunkboy __ cool. I just bought some more silver. I got a great price. All you need now is a new parrot and a wooden leg. Matey. I would LOVE to have another parrot. Go get one. It can help you with your posts. I'm sure there is a rescue shelter around looking for owners. You kept the cage, right?

pahunkboy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:47:13 PM)
I did keep the cage. Shelters only have cats and dogs.

EbonyWood -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 1:51:01 PM)
quote: ORIGINAL: pahunkboy I did keep the cage. Shelters only have cats and dogs. Well, a pet store then. Life is too short for empty cages.

wittynamehere -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:05:17 PM)
quote: ORIGINAL: willbeurdaddy quote: ORIGINAL: pahunkboy . As precious metals with intrinsic value, gold and silver are more resistant to market fluctuations and devaluation compared to the US dollar – False. Nothing has "intrinsic value". What do you mean? Why is there a phrase for it, if it doesn't exist? (Then again, there's a word for "god"...) Intrinsic means "contained within". Therefore the intrinsic value of gold or silver is related to the properties and amount of the metal itself. "Intrinsic value" has a widely used and accepted meaning in economics. To claim that nothing has intrinsic value, and that therefore this article is "False", does little for anyone with a basic understanding of the English language. If you want to make the claim "False", at least for me anyway, you're going to have to explain in a bit more detail. I for one think the article is pretty interesting. Nice work, Malaysia! Precious metals are real money, and have been since before the beginning of recorded time, and will be until we invent a way to create them out of thin air - like we do with paper and digital "money".

willbeurdaddy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:16:52 PM)
quote: ORIGINAL: wittynamehere quote: ORIGINAL: willbeurdaddy quote: ORIGINAL: pahunkboy . As precious metals with intrinsic value, gold and silver are more resistant to market fluctuations and devaluation compared to the US dollar – False. Nothing has "intrinsic value". What do you mean? Why is there a phrase for it, if it doesn't exist? (Then again, there's a word for "god"...) Intrinsic means "contained within". Therefore the intrinsic value of gold or silver is related to the properties and amount of the metal itself. "Intrinsic value" has a widely used and accepted meaning in economics. To claim that nothing has intrinsic value, and that therefore this article is "False", does little for anyone with a basic understanding of the English language. If you want to make the claim "False", at least for me anyway, you're going to have to explain in a bit more detail. I for one think the article is pretty interesting. Nice work, Malaysia! Precious metals are real money, and have been since before the beginning of recorded time, and will be until we invent a way to create them out of thin air - like we do with paper and digital "money". in·trin·sic (n-trnzk, -sk) adj. 1. Of or relating to the essential nature of a thing; inherent. Nothing has intrinsic, value, only the value that is placed on it by the market or whatever economic system that is prevailing. Gold could be worth absolutely nothing tomorrow. And while the article provides interesting information about the dinar, it doesnt provide any further analysis. No government can effectively maintain a gold standard on its own. It requires the cooperation of all governments that own a significant percentage of the extant gold. It hasn't been, won't be, and shouldn't be.

wittynamehere -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:21:50 PM)
Yes, that's the same definition I found. So why do you say that nothing has intrinsic value? Why is there such a term if it defines nothing? Are you saying that the millions of times it is used every day are all incorrect? What term would you use in its place? Sure, gold could be worth nothing tomorrow. Maybe it's not even worth anything right now! What's your point?

willbeurdaddy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:28:36 PM)
quote: ORIGINAL: wittynamehere Yes, that's the same definition I found. So why do you say that nothing has intrinsic value? Why is there such a term if it defines nothing? Are you saying that the millions of times it is used every day are all incorrect? What term would you use in its place? Sure, gold could be worth nothing tomorrow. Maybe it's not even worth anything right now! What's your point? You answered your own questions. If it could be worth nothing tomorrow it has no intrinsic value, by definition. I dont hear it millions of times a day, so I dont know if they are all incorrect. Whenever it is used to defend a gold standard, however, it is incorrect. A gold standard is a medium of exchange no different than paper money, other than than it being so limited that a gold standard restrains the growth of economies that are based on it. Salt was thought to have "intrinsic value" at one time as well.

rulemylife -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:31:06 PM)
quote: ORIGINAL: wittynamehere Yes, that's the same definition I found. So why do you say that nothing has intrinsic value? Why is there such a term if it defines nothing? Are you saying that the millions of times it is used every day are all incorrect? What term would you use in its place? Sure, gold could be worth nothing tomorrow. Maybe it's not even worth anything right now! What's your point? His point is that gold, paper currency, and whatever else that has been used are only a means of barter. They only hold the value we place on them.

Elisabella -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:36:19 PM)
He's wrong then. Gold has a number of properties that make it valuable - it doesn't rust, it conducts electricity brilliantly, it's malleable. Gold is used in so much tech these days the only way gold could possibly be worth nothing is if we somehow regressed to rocks and spears.

rulemylife -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:37:53 PM)
quote: ORIGINAL: wittynamehere Precious metals are real money, and have been since before the beginning of recorded time, and will be until we invent a way to create them out of thin air - like we do with paper and digital "money". What makes something a "precious metal"? It is because we define it as such.

rulemylife -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:44:02 PM)
quote: ORIGINAL: Elisabella He's wrong then. Gold has a number of properties that make it valuable - it doesn't rust, it conducts electricity brilliantly, it's malleable. Gold is used in so much tech these days the only way gold could possibly be worth nothing is if we somehow regressed to rocks and spears. Gold has as many properties that make it valuable as any of a number of other materials that we don't trade as currency. Myself, I think aluminum is going to be the next big thing. Hoard aluminum. Save your soft drink and beer cans and you'll be a multi-millionaire in no time.

wittynamehere -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:54:30 PM)
quote: ORIGINAL: rulemylife quote: ORIGINAL: Elisabella He's wrong then. Gold has a number of properties that make it valuable - it doesn't rust, it conducts electricity brilliantly, it's malleable. Gold is used in so much tech these days the only way gold could possibly be worth nothing is if we somehow regressed to rocks and spears. Gold has as many properties that make it valuable as any of a number of other materials that we don't trade as currency. Myself, I think aluminum is going to be the next big thing. Hoard aluminum. Save your soft drink and beer cans and you'll be a multi-millionaire in no time. Elisabella is right. Gold and silver have intrinsic value because there is a need for them. Both are extensively used in industry, although silver has a FAR larger share in that regard. Most of the above ground silver has been used up in the past 100 years, and mining isn't even producing enough to meet demand anymore. Everything electronic requires silver, and now solar panels and medicines are using it, with new uses being found weekly. If you think these metals only have value because we declare them to, you are sorely mistaken. Please just google "silver uses" and go from there. It sounds like a lot of people have bought into the lie that paper rectangles actually can replace real money. They only represent value, as opposed to having intrinsic value like the PMs do. "Value" is the word given to something that we desire because it's useful. The more useful, the more valuable. The more common and easy to get something is, the less value it has. Gold is somewhat useful and very rare, which gives it a value currently of about $1200 USD per ounce. Silver is incredibly useful and moderately rare, which gives it a value currently of about $18 USD per ounce. A high % of the Earth's crust is aluminum. It's very useful, but not rare at all.

willbeurdaddy -> RE: New gold-backed currency could be in use next month – Daily Reckoning (7/22/2010 2:59:34 PM)
quote: ORIGINAL: wittynamehere quote: ORIGINAL: rulemylife quote: ORIGINAL: Elisabella He's wrong then. Gold has a number of properties that make it valuable - it doesn't rust, it conducts electricity brilliantly, it's malleable. Gold is used in so much tech these days the only way gold could possibly be worth nothing is if we somehow regressed to rocks and spears. Gold has as many properties that make it valuable as any of a number of other materials that we don't trade as currency. Myself, I think aluminum is going to be the next big thing. Hoard aluminum. Save your soft drink and beer cans and you'll be a multi-millionaire in no time. Elisabella is right. Gold and silver have intrinsic value because there is a need for them. Both are extensively used in industry, although silver has a FAR larger share in that regard. Most of the above ground silver has been used up in the past 100 years, and mining isn't even producing enough to meet demand anymore. Everything electronic requires silver, and now solar panels and medicines are using it, with new uses being found weekly. If you think these metals only have value because we declare them to, you are sorely mistaken. Please just google "silver uses" and go from there. It sounds like a lot of people have bought into the lie that paper rectangles actually can replace real money. They only represent value, as opposed to having intrinsic value like the PMs do. "Value" is the word given to something that we desire because it's useful. The more useful, the more valuable. The more common and easy to get something is, the less value it has. Gold is somewhat useful and very rare, which gives it a value currently of about $1200 USD per ounce. Silver is incredibly useful and moderately rare, which gives it a value currently of about $18 USD per ounce. A high % of the Earth's crust is aluminum. It's very useful, but not rare at all. Gold and silver have intrinsic value because there is a need for them What happens if there is no longer a need for them?

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