Muslim nations look to gold and bartering to beat sanctions
now
- 18 hours ago
BRILLIANT !!! - 4 hours ago
- 12 hours ago
Gold and silver are real money. - 20 hours ago
if these countries would stop and take a good look at what they are doing as far as terrorism goes and stop their involvement in it and be peaceful they wouldnt have to worry about sanctions. - 13 hours ago
ISLAM "religion of peace" and yet the vast majority of VIOLENCE in the world is on it's behalf. - 11 hours ago
94-year old Mahathir should focus on righting the wrongs and rebuild Malaysia into a modern nation instead of trying to be a champion of Muslim nations or the downtrodden.
Not sure why, but he has a beef against the west and everything slightly western. Could be how he was treated as a young man and a medical student in Singapore. - 16 hours ago
Iran is already doing it in Lebanon, they open jewelry stores all over the country to sell it for lower than it cost just to money launder the dollar. - 18 hours ago
Big talk, Big dreams, but we have all seen this movie. The leaders steal the gold and the people beg the West for aid. UN is feeding Yemen,Syria, Iraq etc etc - 11 hours ago
No fiat money none at all gold back currency - 5 hours ago
It's about time don't you think? Sanctions for personal reasons these days are getting out of hands. Can't wait for world war 3. - 19 hours ago
Malaysia should be thankful 20 out of 57 showed up. - 5 hours ago
Is Qatar an ally? Or not? I know Iran is not and Mr. Erdogan trying to be a wise guy - 20 hours ago
take their gold and don't give them anything in return - 5 hours ago
The US is at Cross-Road! Well done! - 3 hours ago
- 13 hours agoWhat happened to Allah ?
- 3 hours ago
Wow, that's really smart. Going back to the old system. - 15 hours ago
ACCORDING TO THE US TREASURY DEPT, THERE ARE 4 TRILLION US DOLLARS OF CURRENCY NOTES BEING HOARDED BY THE GOVERNMENT FROM AROUND THE WORLD, WHY? THAT INCLUDES CHINA, INDIA, N.KOREA, IRAN, MALAYSIA AND HUNDRED MORE COUNTRIES AROUND THE WORLD. THEY DON'T LIKE THE SATAN, BUT THEY LOVE HIS MONEY, WHAT AN HIPPOCRATES. PM. MAHATHIR KEEPS ALL HIS MONEY IN AN ISRAELI BANK WHY? YOU GO FIGURE IT OUT. - 17 hours ago
Can it really happen? For sure not. It will be a dooms day for US dollar and America won't let it happen. - 1 hour ago
When gold currency kicks in, certain rich countries would become poorest countries in the world.
Ricky Lim
(1) The World Economy is US$81 trillion - is there enough gold to support the pegging of world currencies to US$81 trillion?
(2) If not enough gold, does it means that the price of gold will increase multiple fold to match the World Economy of US$81 trillion - in order for world currencies to peg against gold?
(3) Does it means that a few Countries who mine gold - will have become Superpowers overnight - because they can mine gold eg. China, Australia, U.S., South Africa and Russia --- and not base on economic strength. The rest of the World suddenly lose its economic wealth overnight?
(4) Speculators can start attacking by concentrating its speculation in gold rather than many diverse currencies - and will lead to stunted economic growth of the varying economies. Those Countries that store up the most gold - can then hold the World Economy hostages. So does it make sense for the World Countries to peg to one metal that is of limited supply and can lead to World scrambling to hoard gold?
(5) The world has long abandon pegging its currency in gold -due to its limited supply and in fact bring in silver -- but yet both metals are not able to sustain the World economic growth - and hence peg to US dollar to sustain world economy for trade. When economy grow in strength, more money need to be printed to support the economy. But as gold is limited and cannot be printed - does it mean that the economy cannot print more money because it is peg to gold - and the supply of gold is limited?
(6) US cannot easily print money - because the world can sell its treasury bills - that will cause US curreny to weaken. - if the printing of money is not back by its economic growth.
(7) Gold have varying degree of purities - some are 99.99, 99.5, 98, 91.6 etc purities --- then how do currency peg to the varying purities of gold?
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Ricky Lim
(1) In the olden day when World Economy are less complex, human population are much lesser than today's population, the vast supply of gold can be used as peg to Countries' currency.
(2) For eg. Countries trade agricultural goods like rice, wheat, coffee, spices, fruits, cow, sheep, poultries, pig etc.
(3) Industrialisation is at its infancy - eg. trade bicycles, bullock cart, tables, chairs etc.
(4) Thus currencies can peg to gold - and when supply is not sufficient, silver is brought in - to make denomination smaller for trade exchanges.
(5) But now, world population is about 6 billion, World Economy is at US$81 trillion - it is simply not possible for Countries to peg their currencies to gold and even silver.
(6) Countries no longer trade in agricultural goods, but also many components, parts, semi-assemble products, raw materials, robots, missiles, planes, computers, smartphones etc -- Industrialisation 4.0 has make many Countries economies to expand significantly, leap and bound. How will the limited gold supply and even silver supply sufficient to peg against currencies. That means the World Economy cannot grow - and will still remain in the 1800 or 19th Century economy - not US$81 trillion. It also means, the World standard of living all go back to 1800s, 1900s - where 5 cents can buy a car?
(7) Moreover, Countries has evolved to trade in services, finances, virtual economy like digitial economy, eCommerce - that even crypto currencies are jumping into the Economy as medium of exchange --- then how will gold and silver be sufficient for Countries' currencies to be peg against - unless people don't want World Economy to grow.
(8) Pegging world currencies to gold --- is akin to going back to use "abacus" to do calculation instead of using computer spreadsheet, blockchain to keep transaction --- not even using calculator.
(9) Thus the hypothesis of pegging currencies to gold --- is flaw, and can't stand up to scrutiny --
- and will cause the economic wealth of many Countries to plummet - and is thus not workable.
(10) A simple analogy, eg. if the World Economy don't grow, then $100 currency is printed for trade and peg against limited gold supply of $100 is feasible.
But what happen if the World invent alot of things like robots, AI, eCommerce, smartphones computer etc - and the World Economy expang to $1000 - then with gold supply of $100 - does it means all this invention is to be traded at $0 - as the gold supply is finite and cannot expand?
But if use printed currencies, Economies that invent all the new stuff can print up to $1000 - to reflect their Economic output and economic growth - but gold cannot be printed.
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