The Money War Has Begun!

In the West, there are generations of people that do not understand gold from a monetary perspective. In Eastern nations however, a majority of the population recognizes that precious metals are the only real money. Debt based monies, such as dollars, are merely a promise to pay. The growing criticism is that the United States has been able to simply create dollars and then use them to pay for our massive trade deficit. The Islamic world is restless. H.E. Prime Minister Datuk Seri Dr Mahathir Mohamad of Malaysia, has been a long-time advocate of the introduction of the gold dinar as a major international currency. Does anyone realize the impact of this sort of action? To clarify, the Breton Woods agreement in 1945 was the Federal Reserve's payoff for U.S. participation in WW-II. Central to this plan was a gold backed dollar. The benefit was that all world trade, oil sales especially, would be denominated in dollars. As a result, fully 70% of all world trade came under the rule of The Fed. However, in 1971, President Nixon closed the Treasury gold window. As a result, this meant that the dollar was no longer redeemable for gold. Prior to that time, any foreign holdings of dollars could be turned in to the Treasury for gold at the rate of $35 to the ounce. Now they were being told that this standard would no longer hold. That from this day forward, the Federal Reserve would not set a standard value for the dollar, but rather it would "float" and have a changing value. Instead of knowing that there was 1 ounce of gold for every $35, now one would have to guess what the ratio was. For years the world's major corporations and governments had been building up quantities of dollars. They now rushed to dump them in exchange for gold. Major oil producing nations, Saudi Arabia, in particular, began to demand payment for their oil not in dollars, but in gold. This scene precipitated the "Oil Crisis" which was really a gold crisis or a dollar confidence crisis. After much negotiation and a promise not to interfere in the internal policies of these nations, an agreement was reached. Saudi Arabia would accept dollars and we would not "liberate" them. Other Islamic Nations, such as Malaysia, have witnessed currency crisis as a result of this dollar policy. They are starting to recognize that this debt based system has exported massive inflation and debt around the world. Consider this statement by the Islamic Mint, which will now strike gold dinar coins for the United Arab Emirates. "…because of the fundamental political consequences of the introduction of paper money instruments, the reintroduction of gold money can be expected to be an equally significant milestone in the changing tides of the world economic & social situation, there is no doubt that this work puts behind it a century of suffering and defeat for Muslims and opens the coming age to a powerful and revived Islam." The concept of using the Islamic dinar as an international currency is governed by strict religious principles. It is non-debt based and does not contain usury or interest, which is prohibited to the Islamic Faith. At a time like this when the U.S. is at war, it seems logical for our enemies to use money as a weapon by selling dollars for gold dinar. The money war has begun.

Leave a comment

Your email address will not be published.