Malaysia, well, at least its northern state of Kelantan, is putting the Islamic gold dinar and silver dirham into circulation as legal tender and it could be implemented as early as mid-August. It won’t be the first nation using gold coins — Indonesia has already minted about 25,000 pieces for use in Australia, Malaysia, and Singapore — but, they are going to be useable in a rather comprehensive fashion.
According to The Guardian:
“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.
You can read more details about the gold dinar and silver dirham in The Guardian’s coverage of whether or not Malaysia’s Islamic currency will be able to thwart capitalism.
Rocky Vega,The Daily Reckoning
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
when people criticize capitalism these days they don’t mean real capitalism. they mean the corporatist/fascist-capitalism hybrid currently practiced in the west.
real capitalism is a beautiful thing.
the real point is that gold is severely undervalued, perhaps by a factor of 10, so anyone who pays it out for goods and services at these prices is a fool. maybe the government is trying to impoverish itself. stranger things have happened. To be continued….
It would seem that a gold coin is not to be confused with a currency that is backed by gold. The coin IS gold, some of that commodity; a paper bill backed by gold is something that you need government performance on in order to get the gold. That could be problematical.
So the gold dinar would never be a reserve currency. It would just be some gold held in reserve by a central bank (which is already done by most central banks)— bullion in another shape.
“real capitalism is a beautiful thing.” Yea like a beautiful sunset or a beautiful woman. Pathetic.
I think they misunderstand capitalism, gold and silver coinage would restore capitalism and harm socialists.
Iraqi Dinar is very real, but the pitch many Dinar dealers try to send your way is far from reality and designed to get you buy from them. Some of these dealers even go as far as to explain that they are trusted by the government and supply you with a document to reinforce this illusion.
First, the US government requires a business (or anyone for that matter) to register with them when selling any kind of currency. Once you register, the US Government will send you a letter confirming your registration. IT DOES NOT mean that they trust or vouch for the company, only that they complied with the law.
I was looking ervewyehre and this popped up like nothing!
Pingback: plantacja lawendy
Pingback: texas car title and payday loans
Pingback: Minneapolis Bike Rental
Pingback: kfz versicherungsvergleich
Pingback: golf gear
Pingback: how to win the lottery free full record
Pingback: autoversicherung vergleich
Pingback: the european roulette book free download
Pingback: shoulder injury
Pingback: celebrities before they became famous
Pingback: Excessive sweating
Pingback: bruce jenner plastic surgery
Pingback: Facebook Like Button
Pingback: hoodia weight loss
Pingback: empower network blog
Pingback: ageless male resetting settlement
Pingback: kris jenner cirugias
Pingback: ageless male scam
Pingback: new country music
Pingback: home inspection in the bronx
Pingback: promotional product
Pingback: slot machine bar
Pingback: from this source
Pingback: tagaway reviews
Pingback: megan fox photoshoot
Pingback: pamela anderson cirugias
Pingback: gallina slot machine gratis
Pingback: Get Rare And Out Of Print Books Here
Pingback: fat loss factor program review
Pingback: electric cigarette
Pingback: work at home
Pingback: Horror movies
Pingback: e cigarettes free trial
Pingback: wilshire cardiology group wilshire boulevard los angeles ca
Pingback: Miami drunk driving lawyer
Pingback: home based business opportunities
Pingback: dieta bajar peso
Pingback: electronic cigarette free trial
Pingback: pop over to these guys
Pingback: electronic cigarettes nicotine free
Pingback: online casino handy
Pingback: scarlett johansson cirugia
Pingback: rachat de credit immobilier au meilleur taux
Pingback: paintless dent repair
Pingback: ĀTRIE KREDĪTI
Pingback: aspartam produkty
Pingback: dukan diet recipes australia
Pingback: yeast infection
Pingback: negocios rentables
Pingback: giochi slot machine da bar gratis cha cha cha
Pingback: phen 375
Pingback: get rid scars
Pingback: tao system
Pingback: hcg drops
Pingback: buy 3000 wiki seo backlinks for $3
Pingback: $2 to your account for free
Pingback: $2 FREE Money from Seoclerks
Pingback: HIGH Retention Youtube Views
Pingback: Get PR9 Permanent Blogroll just $12
Pingback: co to jest aspartam
Pingback: koszmarna wpadka volvo
Pingback: czy aspartam jest szkodliwy
Pingback: Bd News Online
Pingback: volvo s60
Pingback: domain registration
Pingback: Berita Bola
Pingback: Make Money Watch Ads and 50percent from referrals
Pingback: air yeezy 2 black
Pingback: braun series 7 790 review
Pingback: affordable seo
Pingback: hearthstone beta key giveaway
Pingback: Make cash using Ojooo Guaranteed
Pingback: mleko nan
Pingback: Birth of a Spartan Trailer
Everyone knows how comically terrible government accounting is, but few people may realize just how bad it's gotten... This infographic shows how trillions of dollars of government money has gone missing money over the last several years. And what's worse... that no one seems to care where it went...
It's amazing what some people will do out of sheer boredom. Investors, for example, will often throw money around, simply because they have nothing better to do - as if making MORE moves automatically translates to MORE money. Today, Chris Mayer explains why this emotion is so dangerous and how staving it off can save you a ton of money...
When a big company IPOs, investors can hardly contain their excitement. In a flash of exuberance, they throw money at a company they've already decided is worth something... even if the market hasn't made up its mind yet. Today, Jonas Elmerraji explains how one simple word can change the fate of every IPO investor. Read on...
Think it's impossible to escape the throes of Obamacare? Think again. Today, Chris Campbell relays the story of one man was able to get out from under the (un)Affordable Care Act, and how you can do it too. Don't see another doctor, take another pill, or shop around for better medical insurance until you read his story...
For the last few days, the market has been buzzing with excitement over the Alibaba IPO. Well, the day is finally here. And while some investors line up with their lotto tickets, ready to snatch it up no matter what the price, Greg Guenthner suggests a slightly more restrained approach. Read on...