acockasian Posted August 13, 2010 Report Share Posted August 13, 2010 This is not good news for the US dollar. KOTA BARU: Kelantan paved the way to become the first state to introduce the gold dinar and silver dirham currency. Speaking when launching the Syariah currency Thursday, Mentri Besar Datuk Nik Abdul Aziz Nik Mat said the state would strive to expand the use of the gold dinar and silver dirham in all transactions, including paying civil servants' remuneration. However, there were still many technicalities that had to be addressed by the state government, he told reporters after launching the dinar gold and silver dirham here. The dinar gold and silver dirham is managed by Kelantan Gold Trade (KGT), a subsidiary of Kelantan Mentri Besar Incorporated (PMBK). In a symbolic gesture to mark the occasion, Nik Abdul Aziz handed over a gold dinar to PMBK chief executive officer Mustapha Salleh as payment of salaries to PMBK employees for the month. Nik Abdul Aziz, who is also PMBK chairman, said to date 1,000 traders had agreed to use the gold dinar and the dirham silver currency in their transactions, besides Lembaga Tabung Haji and Bank Islam Malaysia. "There is no reason why transactions in syariah currency cannot be practised in the state as it was widely used thousands of years before the fall of the Ottoman Empire," he said, adding that other states were encouraged to use the currency. - Bernama http://thestar.com.my/news/story.asp?file=/2010/8/12/nation/20100812183855&sec=nation Link to comment Share on other sites More sharing options...
Flashermac Posted August 13, 2010 Report Share Posted August 13, 2010 So when did Kelantan secede from Malaysia? Maybe Roi Et should start issuing its own currency. Link to comment Share on other sites More sharing options...
acockasian Posted August 13, 2010 Author Report Share Posted August 13, 2010 Mac...this is HUGE. Mahathir first talked about this as a response to the '97 crisis. The goal here is to price oil in gold. This is very bad news for the US and could not be done in Kelantan without tacit approval from Kuala Lumpur. Link to comment Share on other sites More sharing options...
shygye Posted August 13, 2010 Report Share Posted August 13, 2010 ... so how is this big news in the oil trade? Canada, SA, ect. have for a long time issued gold coins. Link to comment Share on other sites More sharing options...
Flashermac Posted August 14, 2010 Report Share Posted August 14, 2010 So the US starts issuing "gold backs" again? Before FDR (probably illegally) took the US off of the gold standard, paper currency said it was redeemable in gold. After FDR it was redeemable in silver. JFK even did that in and now it's just redeemable in more paper money ... Link to comment Share on other sites More sharing options...
cavanami Posted August 14, 2010 Report Share Posted August 14, 2010 I think I heard that in the USA, you must report any transactions of gold that are over $1000. If this is so, it is a definite pain and more unneeded gov interference!!! Link to comment Share on other sites More sharing options...
acockasian Posted August 14, 2010 Author Report Share Posted August 14, 2010 ... so how is this big news in the oil trade? Canada, SA, ect. have for a long time issued gold coins. Issuing gold coins is one thing but going on a gold standard, again, is quite another. This is the beginning of a gold standard. Anyone who has followed Mahathir since the mid to late 90s will recall that a gold standard for trade among Islamic countries is a goal. Link to comment Share on other sites More sharing options...
acockasian Posted August 14, 2010 Author Report Share Posted August 14, 2010 I think I heard that in the USA, you must report any transactions of gold that are over $1000. If this is so, it is a definite pain and more unneeded gov interference!!! And it was in the health care bill as well! Link to comment Share on other sites More sharing options...
acockasian Posted August 14, 2010 Author Report Share Posted August 14, 2010 So the US starts issuing "gold backs" again? Before FDR (probably illegally) took the US off of the gold standard, paper currency said it was redeemable in gold. After FDR it was redeemable in silver. JFK even did that in and now it's just redeemable in more paper money ... ...and herein lies the problem. The US can't start issuing gold backed currency again without the price of gold skyrocketing. The purpose of the gold dinar is to take the ability to inflate/deflate currencies out of the hands of politicians. Link to comment Share on other sites More sharing options...
Steve Posted August 14, 2010 Report Share Posted August 14, 2010 I think I heard that in the USA, you must report any transactions of gold that are over $1000. If this is so, it is a definite pain and more unneeded gov interference!!! C'mon Cav, you know why "they" want to monitor gold transactions of size, even modest ones. Link to comment Share on other sites More sharing options...
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