Thursday, October 20, 2011

Gold As Barbarous Relic- Kempen Musuh Licik


Governments have forcibly removed gold not only from the banks, but from academia as well. As a result, the level of ignorance in the world about gold is appalling. Gold has been relegated from economics to superstition, witchcraft, and soothsaying. It is treated like a narcotic agent. "Gold is addictive. Gold ought to be taken away from man's greedy little palms by a paternalistic government", as advocated by Lord Keynes' New Economics. The advice is disingenuous. It is not given in the interest of people. It is given in the interest of the pilferers and plunderers of people. Here is how one author, Howard Katz, describes economics as it has transformed, nay, corrupted, American institutes of higher learning.

"Something is rotten in the state of economics. In the middle of the 20th century a group of bankers bribed some of the nation's top colleges to peddle a reactionary economic theory (which was to make bankers a lot of money). This theory swept American higher education with the result that pretty well everybody who has graduated with a degree in economics no longer has the slightest idea of what he is talking about… There is nothing wrong with the science of economics, but there is something terribly wrong with the kind of trash handed out by our nation's colleges today. It is people dumb enough to imbibe such trash who are the reporters and columnists in most of the media, and these are the people giving most Americans economic advice."


Gold Standard University is fighting back. It is not motivated by the lure of making a fortune in gold speculation. Not as if it condemned efforts to salvage capital from the crumbling old monetary regime to transfer it to a new one. But salvaging won't be a bed of roses as the idea of making a fortune in gold speculation seems to suggest. Gold Standard University is motivated by values held in the highest esteem. It is motivated by truth, the cause of which has been so pitifully betrayed by economists in taking bribe money from banks; and the dissemination of which has been so miserably compromised by economics departments in reacting to blackmail (namely the threat to discontinue grants and to purge truculent economists).

Making statements about the future course of the gold price is a most treacherous undertaking. Gold Standard University is committed to tell you all that can be supported scientifically. Making predictions about the timing of price moves up or down is beyond the pale. However, I am willing and happy to share with you my insight, for whatever it is worth, on the gold price issue as well as on the burning question how long the agony of watching the death throes of global fiat currency will take. I promise that I will always carefully delineate facts from opinion.

NOta: apa...dalam dunia akademik pun ada rasuah politik dan manipulasi ideologi untuk menjatuhkan emas perak sebagai wang fitra ? Prof.Antal Fekete sudah berkali-kali diserang oleh konco-konco anti-gold interest groups yang kaya raya....

Emas adalah kurnia Tuhan untuk jadi wang, bukan kertas dan bank dan undang-undang negara/monopoli

Orval W. Adams, one-time president of the American Bankers Association, in his article Inflation ¯ The Termite of Civilization wrote in 1956:

‘Open the Mint to gold. Gold is a gift to the world from an all-wise Creator. There is no substitute. There will never be any. Without gold as a base for national and international exchange, civilization could not have emerged from its barter period of the Dark Ages. Gold is the only insurance against ruthless politicians debasing and corrupting the world’s exchange and money systems of a free people. I repeat, gold is a blessing from an all-wise Providence to prevent the tragedy that follows a debased, corrupted and politically managed medium of exchange. The gold standard is the automatic watchman on the tower of the government of free men, to guard against the poison of totalitarianism entering the bloodstream of sound money.’


bILA umat islam bangun dari mimpi bahawa sistem wang kertas sekarang masih 'baik,kuat dan praktikal' ....? Tunggu Banjir besar ala zaman Nabi Nuh alaihi salam......!

Wednesday, October 19, 2011

Riba/Penipuan Dalam Pelaburan Akaun Emas Bank

Beberapa bank di Malaysia menawarkan pelaburan akaun emas dengan nama-nama seperti berikut:

a. Maybank Gold Investment Account.
b. Kuwait Finance House Gold Savings Account
c. Public Bank Gold Investment Account
d. UOB Premier Gold Account

..........Enjoy the rewards of a golden investment
    Secure, hassle-free investment
  • You can invest in gold without the inconvenience of storing and transferring the physical gold, or worry about the security of holding it.
  • The account is reflected in your statement.
    Low price spread
  • The difference between buying and selling prices is low.
    Conversion to physical gold
  • You may convert the gold purchased under Premier Gold Account and Gold Savings Account to physical gold (subject to our approval). A nominal conversion fee will be charged for the conversion.
Instant liquidityYou can cash in your investment any time during banking hours.


Master Izi asked this question:
....where is the secret/fraud/condition that bar you from owning real gold ....? You are only buying paper gold. Buying the price of gold. ....can you see that the banks can declare anytime....subject to approvals/supply....we cannot deliver your physical can take your paper profit or sales of gold 'ownership' many grams ? paper/numbers again....?

Fight Over Gold and Silver - Humanity at Stake

Thus, the fight over gold and silver as media of exchange
is about more than mere money, let alone making money.

For it is a fight with only two possible outcomes:
either control of their own lives by the people themselves,
or control of the people and their lives by political and economic elitists.

- Dr. Edwin Vieira

Responding to numerous requests, I have tentatively arranged for a reprinting of my book, “Pieces of Eight: The Monetary Powers and Disabilities of the United States Constitution” (second revised edition, 2002).

In light of the accelerating meltdown of America’s monetary and banking systems, this book is more timely and should prove more useful to public officials, public-policy analysts, attorneys, economists, historians, and patriots in general than ever before.

This will be a first-class reprint of the original two-volume, 1,722-page, hardbound, and Smyth-sewn edition, protected during delivery in shrinkwrap. It will be produced by one of the premier book printers in the United States.

But this reprint of “Pieces of Eight” will be made available on a subscription-only basis, and only if a sufficient number of prepaid orders are received before a deadline.

Monday, October 17, 2011

Syor dan Sokongan Keatas Inisiatif Dinar Malaysia



The Right Honorable Dr. Mahathir Mohamad, Prime Minister, Malaysia
FROM: J. Douglas Bowey and Antal E. Fekete
SUBJECT: Islamic Gold Dinar and Silver Dirham Initiative
DATE: 1 November, 2002

Authors of the Islamic Gold Dinar and Silver Dirham initiative are to be congratulated for their ingenuity, courage, and timing on designing and instituting an international monetary system based on hard money. The following points may be useful to further improve the efficiency of this bold initiative inaugurated by Malaysia.

1. No Monetary Role for Gold and Silver without Free Coinage. The Gold Dinar and the Silver Dirham will not be money and can’t have any monetary role until and unless at least one government officially opens the Mint to gold (silver). This means "free coinage of gold (silver)," that is to say, the Mint must stand ready to convert gold into Gold Dinars (and silver into Silver Dirhams) in unlimited quantities free of charge, on the account of anyone tendering the right amount and fineness of gold (silver). In the absence of this commitment, the Dinar and the Dirham, just like the U.S. Gold and Silver Eagles, will remain souvenirs and keepsakes, having no monetary role to play whatsoever. They will not enter into monetary circulation, and will not be used for accounting purposes. This is one of the critical points missed by virtually all hard-money advocates today. It goes without saying that all taxes, duties, imposts, restrictions on the import and export of gold and silver must be abolished and declared unconstitutional.

2. First Step: Open the Mint to Silver. As the IMF has imposed a ban on monetizing gold (but not silver), for tactical reasons it might be advisable to test first by declaring the Mint open to silver only. This would have the effect of attracting capital in the form of silver to countries with a Mint open to silver. A bill market would spring to life more or less spontaneously. It would then finance the production and distribution of crude oil and other important commodities in terms of the Dirham. There is no need unnecessarily to affront and offend the U.S. by declaring the dollar ineligible for billing crude oil deliveries. However, opening the Mint to silver would be just as effective in puncturing the balloon of dollar-hegemony. The dollar would start fading away as the trading currency of the world.

3. Second Step: Open the Mint to Gold. Once the principle of billing in Silver Dirhams is accepted, as a second step, the Mints can be declared open to gold as well. IMF fulminations notwithstanding, Islamic and other countries can go safely ahead with their gold and silver circulation and bill markets trading bills payable in gold and silver, because the denial of IMF dollar-credits can no longer hurt them. They will be able to attract all the capital they want in terms of gold and silver.

4. Third Step: Finance the Trade in Crude Oil with Gold Bills. A gold bill is just an invoice evidencing the sale of goods in urgent demand (such as crude oil, grain and other agricultural commodities, copper, etc.) by the producer to the distributor. It has to be "accepted" by the latter, must mature in 91 days or less without the possibility of extension, and it must be payable in Dinars at maturity. The bill is a "self-liquidating" instrument. This means that, at maturity, the bill is paid out of the proceeds of the disposal of the underlying merchandise by the distributor. A spontaneous trading in gold bills will spring up. In the bill market, outstanding gold bills are bought and sold at a discount, which depends on the number of days left to maturity and the discount rate. The discount rate varies inversely with the "propensity to spend." The greater the demand for the underlying merchandise, the lower is the discount rate. Sellers of bills are those who have salable merchandise to ship; buyers of bills are those who have short-term liquid funds to invest. The discount rate may move up or down in such a way as to facilitate the clearing of outstanding bills in the market. The discount rate should not be mistaken for a rate of interest, as explained in (9) below.

5. Making the Banks Irrelevant. The beauty of the plan is that it can bypass any and all banks that may be suspected of affiliation with or allegiance to the big multinational dollar banks. Banks are irrelevant to the bill market trading gold bills. There is no need to establish new dinar banks and train personnel either; that would take years. The spontaneous bill market trading of dinar bills would be a more than adequate replacement for financing domestic and world trade.

6. Attracting Capital from Abroad. Here is the mechanism whereby a country that has opened its Mint to gold can attract capital. The Central Bank stands ready to rediscount gold dinar bills at the posted rediscount rate. A higher rediscount rate will attract gold to the Mint resulting in a capital inflow. A lower rediscount rate will expel gold from the country, allowing capital to seek higher returns abroad. Foreigners will send in gold in response to a higher rediscount rate as they want to hold the most liquid short-term instrument: the gold bill of exchange.

7. Wages Must Be Payable in Gold Dinar and/or in Silver Dirham. In order to facilitate dinar and dirham circulation, employers must be requested to pay wages in Dinar or Dirham. Employers get Dinars and Dirhams by selling their gold bills in the bill market, or by rediscounting them at the Central Bank. The workers will spend their dinars and dirhams on consumer goods. The circle is now complete: the consumer’s coin is paying the bill at maturity, by which time the underlying consumer good is sold in exchange for the dinar or dirham.

8. Bimetallism Would Be a Mistake. Do not fix the bimetallic ratio between the Gold Dinar and the Silver Dirham. Let the market find and adjust the proper ratio, whenever necessary, without government intervention.

9. Islamic Law Banning Usury and Interest. It must be clear that there is no lending or borrowing, nor interest paying and taking, involved in bill trading. The function of the bill market is not lending; it is clearing. The producer bills the distributor for merchandise shipped, with "terms: 91 days net." The important point to grasp is that the producer is not a lender; and the distributor is not a borrower. The term 91 days net is part of the contract. Hardly any distributor pays cash to the producer for merchandise shipped for resale. Bills circulate spontaneously before maturity; the producer may use them to pay his suppliers, who will be glad to take the bills in payment for the supplies shipped. Alternatively, the producer may discount his bills in the bill market for cash. The transaction has nothing to do with lending and borrowing at interest. Discounting bills is part of the process of clearing. In more detail, discounting is an essential part of the trade in consumer goods. The amount of discount is of the same character as the markup on merchandise representing overhead and profit of the merchant, allowable charges under Islamic Law. The amount of discount depends (1) on the number of days the bill has to run before maturity; and (2) on the discount rate. The discount rate is not an interest rate. The former reflects the propensity to consume; the latter the propensity to save, the relation in either case being inverse. That is, the higher the propensity the lower is the rate and vice versa.

Note that gold distribution and the bill market are just the two sides of the same coin: neither could stand without the support of the other. In order to make the gold dinar an instrument of world trade, there must be a complementary bill market.

We would be pleased to answer any questions derived from this MEMORANDUM, or to act as consultants and/or advisors to Governments that are courageous enough to implement a plan to open the mint to silver and/or gold.

J. DOUGLAS BOWEY is a Private Merchant Banker living in Los Angeles, California. He has traveled extensively and lived in the Islamic world. Bowey’s specialty is strategic alliance finance.

ANTAL E. FEKETE is Professor Emeritus (Mathematics), Memorial University of Newfoundland, St. John’s, Newfoundland, Canada. He is a world-class economist specializing in monetary science and history. He lives between St. John’s, Newfoundland, Canada, and Budapest, Hungary. He has written extensively. A portion of his writings may be seen on the website

J. DOUGLAS BOWEY and ANTAL E. FEKETE have recently joined forces to create an opportunity. Together they will now begin to offer this opportunity (methodology) to "select" Central Banks/Governments. This methodology allows Central Banks/Governments to continually increase their gold and silver reserve holdings, with minimal risk, without the use of "financial engineering," and while retaining full physical control of those reserves.BOWEY and/or FEKETE may be contacted through:

J. Douglas Bowey and Associates
Beverly Hills, CA

Gold Dinar in Malaysia by James E. Sinclair 2002

The planned introduction of the Gold Dinar is not an act revenge by Malaysia. It is true that there was a huge and devastating currency raid a few years ago by a famous US trader, who leveled Asian monetary units and caused the major Asian economies to falter. It is true that some of those economies have not fully recovered. However, it is also true that history may point to this currency raid and raider as the germination of the seed for the uniting factor of Islamic economic power that changed the economic and monetary world. That currency raid, which I believe never considered the ramifications to human life, is a watershed example of the devastating negative potential of personal enterprise versus the positive attributes of free enterprise.

I am however starting to think that the plan for the Gold Dinar and support from other Islamic nations is a planned offensive against the use of the dollar as a settlement currency for oil. It is perceived, and correctly so, that the Islamic world is controlled via the use of the US dollar as the main settlement currency. When I say "controlled" I mean whatever happens economically in the USA is exported there via the dollar. Dollars exchanged for the Gold Dinar currency as a measure for gold settlements quarterly or gold convertible to pay for certain oil imports would end all the debate of whether or not gold has a place in the monetary system.

What we are hearing now is that the Gold Dinar will be used as a "measure" settled quarterly in gold on an Islamic intra-nation basis, but that could change quickly. A review of the trade balances of Malaysia and its intra-Islamic trade partners indicates that if the Gold Dinar is employed as now suggested, it would tie up approximately 200 tonnes of gold production equal to 10% of new mine supply. If Malaysia went all the way and went to convertibility with a 15% gold cover, they would utilize more than 300 tonnes of new production. Either way, this is the Wildest of Wild Cards for Gold.

The advent of the Gold Dinar, as now envisioned, would remove any discussion of whether or not we are embarking on a very long-term bull market in gold. I have already told you that I believe this is not just a gold recovery, not just a gold bull phase, not just a gold bull market, but the advent of the return of gold to a monetary application in which gold will be in a bullish posture on balance for the rest of my life. I expect to live until at least 2030. Gold Producer Hedger Take Note.

Few Islamic nations have affinity with Hussein, but fewer like the idea of the US attacking Iraq, an Islamic country. For what it is worth, I am told there is a significant possibility that when the US attacks Iraq, the united Islamic salvo back will be at the US dollar via the Gold Dinar -- not as a measure, but rather as a convertible currency. Confidence that the Saudis will come to the rescue of the dollar stands on thin ice. The Saudi Royal Family is under significant pressure from the fundamentalist influence there. They are less likely than most observers think to rescue the dollar this time. The Gold Dinar is the major wild card in the entire history of gold. It must be monitored very closely.

Translated from the "Al-Fath Al-'Ali Al-Maliki" pp. 164-165

"This Fatwa considers paper-money to be fulus, because it only represents money and does not have value as merchandise. It follows that since Zakat cannot be paid in fulus, which has no value as merchandise, it cannot be paid in paper-money, which value as weight of paper is null. On this basis, it becomes clear the urgent need to restore the use of the Dinar and the Dirham as payment of Zakat. If the millions of Muslims who now make their payment of Zakat in paper money would do it in newly minted Dinars and Dirham's, they will put in circulation millions of gold and silver coins into the mainstream of daily commercial activities of our communities. That single act will became the most important political act of the century, opening the path towards the establishment our own halal free currency breaking away from the usurious financial system.

The return to the payment of zakat in gold and silver is an essential part of the reestablishment of Islam."
Those are serious words and should not be taken lightly. You see, the establishment of a gold-based currency is rebellion against the IMF as it is distinctly forbidden under IMF rules. The advent of the Gold Dinar would be the "Nadir" of the IMF & World Bank.

These are uncharted times. I believe that the Islamic Nations are quite serious about this and that in some form, it will happen on schedule or sooner. Now we can add a "Nuclear Wild Card," an independent gold-based Islamic currency to the 5 elements for a long-term bull market in gold.

The Seriousness of the Gold Dinar
A presentation made in Kuala Lumpur Malaysia
The Honorable Dr. Mahathir Bin Mohammed
Minister of Finance for Malaysia
"The Gold Dinar in Multilateral Trade"
Presented to the Community
James Sinclair

I have chosen to delete the first 17 points as they refer to subjects that might cause the western precious metals researcher to prejudice the rest of this extremely important document. There is no coverage in the West of this watershed event in monetary history which is clearly, really and powerfully in the making. Those that wish the first 17 points need only ask for them and I will provide them. They speak to the perspective of an Arab in today's Islamic world. This opening 17 points requires a perspective of high pan-determinish to deal with objectively. That is a quality that the West has always lacked and after September 11th probably will not acquire soon in matters dealing with the Islamic world. I have made the decision to make to present t to you in this manner as it must be read with an open mind.

There is an Islamic currency coming. That is a fact. There is a high chance that this is it. The Dinar is a tactic nuclear monetary weapon of self-protection in the Islamic perspective. It is a statement by them of Islamic Self Consciousness and Islamic Self Esteem. It is an Islamic rally point for all 1.2 billion of that persuasion. It is coming soon and it is real. It may not be viewed objectively by the West, in the environment of a weak dollar now existing. That weak dollar situation looks to me as if it will get significantly worse before it gets significantly better. This is not low amplitude noise. This is a NOISE that may scream soon the unthinkable word, Remonetization. Here are the words of its architect. Pay close attention to the final point in the words of this Minister of finances own words. They need to be understood completely in order to understand what is coming. Oleh/By : DATO SERI DR MAHATHIR BIN MOHAMAD Tempat/Venue: IKIM HALL KUALA LUMPUR Tarikh/Date: 23/10/2002 Tajuk/Title : THE GOLD DINAR IN MULTI-LATERAL TRADE SEMINAR

20. If the Muslims are going to protect themselves they must have sufficient wealth. Allah has endowed Muslim countries with inexhaustible wealth. These need to be administered for the good of the ummah.

21. But wealth can also be acquired through commercial activities, through the production and distribution of goods and services and through trade.

22. Today trade between Muslim countries is small. It is not suggested that we reduce our trade with the non- Muslims. But we should endeavour to increase the trade between Muslim countries.

23. We can trade through the exchange of goods, through barter. But today we use money. Since we don't have a currency which is strong enough and stable enough in exchange rate terms, we have to use the American dollar. But the dollar is also not stable. Today the dollar has depreciated against many other currencies. This means that despite the increase in the price of oil for example, we are actually earning less due to the devaluation of the dollar. It is the same with the other currencies. It is the same with our own currencies. They all fluctuate in value. And they are all subject to speculation and manipulation as happened in Malaysia and other East Asian countries, in Russia and in Latin America.

24. The reason for this is that paper currency has no intrinsic value. You can print any figure you like on currency notes but in exchange rate terms the figure means nothing. The Malaysian Ringgit is 3.8 to one U.S. Dollar. The Turkish Lira is 1.5 million to one U.S. Dollar. The Indonesian Rupiah is 9000 to one U.S. Dollar. The purchasing power within the country is different from the purchasing power outside the country. Sometimes countries have as many as four exchange rates -- one official, one for domestic economy, one for export and one for import.

25. Clearly this situation in terms of international finance is chaotic and anarchic. But since the system benefits the powerful countries they are unwilling to correct it.

26. If we want to avoid being short-changed we must have a currency that has intrinsic value. Gold does fluctuate in price but the fluctuation is minimal. It is not possible to devalue gold by one hundred percent or one thousand percent. Nor is it possible to revalue gold by the same percentage. The fluctuation in the value of gold can only be by a few percentages, up or down.

27. When the Allied nations met in Bretton Woods to determine the principle for the rate of exchange of international currencies in order to facilitate trade, they decided to use gold as a standard. The value of the U.S. Dollar was fixed at one dollar for 1/35 ounce of gold or 35 U.S. Dollars per ounce. All other currencies were valued in gold through the rates of exchange with the U.S. Dollar.

28. This worked quite well until some countries wanted to devalue their currencies in order to become competitive in the international market. Then other countries also decided to devalue in order to remain competitive. Finally the U.S. Dollar was devalued against the Gold.

29. At this stage the gold standard could not be sustained. The market claimed that it could determine the exchange rate through the demand and supply of currencies freely traded in the market. But profiteers moved in and they manipulated the value of the currencies so that there was chaos in terms of exchange rates of currencies. Business became very difficult. Indeed many good businesses went bankrupt when the domestic currency gets devalued. The hedge Funds which claim to insure the value of the currencies made huge sums of money speculating and manipulating the values of the currencies.

30. This anarchy in the international financial regime will remain because it benefits the rich and the powerful. If we want to protect ourselves we must evolve our own payment system, our own trading currency.

31. The Gold dinar can provide the currency for trade between nations. If we value all trade items against gold, then we will have no problem with the exchange rate. We know that in the last resort we can melt the gold and sell it in the market. You obviously cannot do that with paper currency, worst still with figures on a computer. They have no intrinsic market value as gold has.

32. But gold is bulky. We cannot be carrying gold all over the world in order to pay for goods we want to import. But we need not do that.

33. It is not intended to use the gold dinar as currency for everyday transactions in the domestic market. For this we can use national currencies. If there is inflation then the currency can buy less gold and other goods. And vice versa. So there is no necessity to carry bags of gold coins for transaction within the countries.

34. But even for international trade the transport of gold bullions or gold coins would be very minimal. Through bilateral payments arrangements the imports can be balanced by the exports and the differences settled in gold dinars. The Central Bank can provide a guarantee for the gold required for the payments of the balance. In the following weeks or months the deficits may be reduced or a surplus achieved. In that case the payments of the balance can be made through accounting arrangements between the Central Banks. It is only occasionally that a necessity might arise for the actual gold dinar to be used to pay for the purchase of imports.

35. We cannot really verify the amount of money a country has. A country's own currency cannot be regarded as its reserve. But gold dinars or gold bullion or gold ingots can serve as a country's reserve. Still in the end we have to trust each other. If we are good Muslims then the cases of fraud by Central Banks would be minimal.

36. Assuming that Malaysia exports to a Dinar Area country a hundred million Dinars worth of motor vehicles and then imports 110 million dinars worth of oil, then the payment required by Malaysia would be just 10 million dinars. The ten million dinars is credited to Malaysia's trading partner. If in the following month the trading partner buys 110 million dinars worth of Malaysian cars and Malaysia buys 100 million dinars worth of oil, then no payment need to be made by either party. The 10 million dinars that has to be paid by Malaysia's trading partner for the motor vehicle can be offset by the credit of 10 million dinars from the previous month's transactions.

37. Today with computers we can close account and pay more frequently. Through this method it is not necessary to purchase or earn hard currency.

38. Of course there may be some countries which are so poor that they cannot have gold dinars. We can buy some raw materials to be paid in gold dinars. They can be helped to build up the reserves of gold dinars.

39. There will be problems. But if we begin with just a pair of countries we would be able to minimise problems and demonstrate whether it works or not. We will be able to identify the weaknesses and the faults and correct them.

40. Gold is a precious metal. There has never been a time when there was no demand for gold. It is also not so plentiful that its price will fall the way paper currency or even other precious metals can fall. Yet it is not so limited in quantity that anyone or any trader can corner it and manipulate the price.

41. In different countries the price of gold will differ in terms of the currency of that country. That is a function of the currency of the country. The value of one gold dinar is one gold dinar no matter what the exchange rate of a currency is against the gold dinar. If the value of goods or services is expressed in gold dinar, the value remains the same no matter which country is involved in the trade.

42. Thus an exporter can declare the agreed price in dinar to the importer in another country and to the Central Bank in his country. Depending on the agreement reached the Central Bank will pay the exporter the current local currency equivalent to the gold dinar price. At the importer's end, he would pay to his country's Central Bank the local currency equivalent of the agreed price in dinar. At the end of the week or month the Central Banks will total up the value in dinar of the exports and imports between the two trading countries. If they are not balanced then the country with a surplus will have a credit account against the country with a deficit. The difference can be paid in dinar or in goods or the country with the surplus can hold the dinar for future purchase from the country in deficit.

43. In multi-lateral trade, the process may be a little more complicated but it is entirely, manageable. A clearing house can be set up for a group of trading countries and the deficit and surpluses balanced. The process is not unlike the clearing of the cheques of numerous banks at a central clearing house.

44. Provided there are goods or services to be supplied by all participating countries, the amount of gold dinars that needs to be kept as reserve backing and for payment in the last resort is very small. Ideally there would be no need to transport and pay in dinars. The imports and exports in most instances would cancel themselves. The profits come from disposing of the goods or services domestically when the local currency would be used.

45. There will be problems of course. But there are problems now. Countries with no "hard currency" i.e. U.S. dollars cannot pay for their imports anyway. In addition the U.S. currency is not as stable as gold. Not only can it appreciate or depreciate widely but a country's currency can be made to depreciate so much against the U.S. Dollar that its imports cannot be paid for, priced as they are in U.S. Dollar. The gold dinar cannot depreciate much against the U.S. Dollar.

46. Gold price can also be manipulated but not as easily as U.S. Dollar or other currency. No one can sell gold at below market price because he just will not be able to deliver when called upon to do so. Short-selling will be very difficult if not impossible.

47. However local currency prices of gold can still fluctuate if left to the market. It is up to the country concerned whether to control exchange rates or not. But speculation and manipulation will not be as easy as when local currency is valued against the U.S. Dollar.

48. It must again be stressed that the Gold Dinar is exclusively for international trade. It is not to be used as local currency. In a sense it is like the U.S. Dollar now. Some countries of course use the U.S. Dollar locally for paying hotel bills by foreigners. But the dinar is heavy and cumbersome to carry. So it cannot be used as freely as the U.S. Dollar locally. This again lends credibility to the dinar and the local currency, which has to be used for local payment.

49. We should not be too ambitious as to launch the Gold Dinar for multi-lateral trade at one go. We should begin by pairing off the countries willing to use the Gold Dinar. A pair of good trading countries with a fairly well balanced trade should initiate the use of the Gold Dinar. Problems that arise can be resolved and the system improved. After the bugs have been got rid off then the trade using the dinar can be expanded gradually to involve more countries.

50. Traders in particular will be happy because their prices in Gold Dinar would not be affected by changes in the exchange rates of the importing countries or the exporting countries. In dinar, the prices will always remain the same.

51. It is not the intention to make the dinar a common currency for all countries. It is not really the Gold Standard with a fixed value against local currency. If countries print more local currency there would still be inflation within the country. But trade would be stable and enhanced. Speculators and manipulators will not be able to undermine international trade.

52. Of course the Gold Dinar can be a trading currency, for all countries, not necessarily Muslim countries. But Muslim countries are in the best position to demonstrate the viability of the system. They are in a position to manage their economies rationally and in the process show the world that they are capable of growing with stability and in peace. And this will do more towards countering oppressions by their enemies than the futile violent retaliations.

Sinclair conclusion:Dear Friends of the Gold Community new and old, this is a very young gold market with a long way to go. It is only in the crawling stage and has done magnificently so far. Soon it will stand up, become strong and be recognized. This time Atlas will not Shrug but rather Gold as an economic Atlas will be used to bolster and restore confidence in the US dollar through a revitalized Gold cover Clause. When the next bull market in equities begins it will be gold that will stand as the foundation to that event and not more paper foolishness from any central bank or international derivative traders. The really millennium begins when gold revitalizes world economies not through convertibility but rather through the gold's real role in the monetary system. Gold is a control item that disciplines the creation of monetary aggregates. That is what the Gold cover clause does and that is why Nixon sterilized it. Mark my words. It is coming and it brings good times, not the four horsemen now looked for as the specters coming over the hill. The ascendancy of gold will be hard fought but will be finally embraced as now popular central bank tools of interest rate manipulation and monetary aggregate expansion are destined by their own definition to fall flat on their political faces. It is amazing that out of Islam comes what will save the Western World's economic system. I am certain that Divinity, whatever He, She or It is or is not, has a unique SENSE OF HUMOR and loves Infinite Variety.

4 of the 5 elements for a long-term bull market in gold are in. The 5th element may well be here as well. Now the Wild Card has raised it's head. Where is the greatest risk in gold now?

In my opinion, the short side of gold has infinite risk. The long side of gold has significant fundamental support.

© 2002 James E. Sinclair

This article appears in the Nov. 15, 2002 issue of Executive Intelligence Review (
Gold Dinar: An Economic and Strategic

FED mencipta wang - ibarat kuasa syirik

Esei oleh Prof.Antal Fekete ( : Mechanism of Capital Destruction

People tend to have a religious faith in the Fed’s miraculous power to create something out of nothing. They think that the Fed is above capital requirement and accounting rules. They think that the Fed is above the law. They dismiss the idea that the Fed, too, can suffer from capital inadequacy, or that it may not be able to escape the ill effects of falling interest rates.

The Federal Reserve Act (as amended) explicitly forbids the Treasury from participating in the earnings of the Fed. The purpose of this provision is to retain the undivided surplus in the Federal Reserve System to meet emergencies precisely like the present crises. The conspiracy of the Treasury and the Fed ignores this provision of the law. Year in and year out the Fed remits about 90 percent of its earnings to the Treasury under false pretences, calling it the “franchise tax on Federal Reserve notes”. No sooner had the Treasury received the remittance than it spent the proceeds, and more, on consumption. As a result, the Fed is left with no undivided surpluses and no cushion to fall back on in hard times. And the Treasury has debt far greater than it has resources to retire. This high-handed disregard for the law is motivated by the desire to foster a public image of the Fed as an institution with supernatural powers. The Fed has the magic wand and can wave it to solve any problem by throwing money at it. In this view the Fed is not a bank, but the embodiment of divine power.

The printing press is sputtering

Chairman Ben Bernanke is given to boasting publicly that the government has given the Fed a tool, the printing press, with which it can print any amount of currency necessary to stop any deflation and any depression.

I submit that the Chairman is wrong. The printing press is not everything. The Fed has to operate under the same rules as all other banks. It has to have capital; it has to have an unimpaired balance sheet; it has to observe capital ratios. Above all, the Fed has to put up collateral before it can print new Federal Reserve notes, or create new Federal Reserve deposits. The fact is that the Fed, in addition to dissipating its earnings decades after decades after decades, has also been digging its own grave by pushing interest rates ever lower. Its capital has been destroyed just as that of all other banks. Right now it is near the point that it cannot put new currency into circulation in want of collateral. The printing press is sputtering. The magic wand is broken.

Dead man walking

The Supplementary Financing Program of the Paulson-Bernanke duo means that, in preparation for the $700 billion bailout, the Fed is given securities by the Treasury directly, bypassing the open market. The last time this imprudent departure from the principles of sound central banking has been invoked was during World War II, when the exigencies of war finance were used to justify the bypassing of the open market.

But what does it all mean in practical terms, if we strip away the jargon created in order to mystify the public? It means that the Fed, just like all other banks, has virtually zero capital. It means that the Treasury must recapitalize the Fed by giving it $700 billion worth of newly issued securities. It also means that the bad assets of the banks, some of which have been absorbed into the balance sheet of the Fed, are monetized through the back door.

But the worst part is that the Fed is now a dead man walking, propped up by conspirators who want to conceal from the people the fact of its demise. This is just the latest of conspiracies between the Treasury and the Fed. In creating a central bank in 1913, the government usurped powers not granted to it under the U.S. Constitution. One successful usurpation calls for another. Now, 95 years later, the government is frantically trying to resurrect its creature, the Fed, from the dead.

When Gold Not Sold At World Market As Paper Currency Collapse?

Revaluation of gold, and a return to a gold standard, is the only way that hyperinflation can be avoided while large numbers of paper currency units are released into the economy. This is because most of the rise in prices can be filtered into gold. As the asset value of gold rises, it will soak up excess dollars, euros, pounds, etc., while the appearance of an increased number of currency units will stimulate investor psychology; and lending and economic output will increase all over the world. Ben Bernanke and the other members of the FOMC Committee must know this, because it is basic economics.

It is to be regretted that more of Professor Conrad's admirable paper cannot be quoted here because of lack of space. To summarize: Bernanke is prepared to throw the issuers of paper gold at the Comex to the wolves, as they have become useless, even a nuisance, by now. Besides, the wolves must be appeased lest they devour whatever remains of the U.S. banking and insurance system.

My own position is somewhat different from Professor Conrad's. In my view we are facing a world-wide elemental grass-root movement: the flight into physical gold ? witness the backwardation in gold. It is irresistible, and will ultimately overtake all other market forces. It will overwhelm official resistance.

An intriguing case can be made, as is attempted by Conrad, that Bernanke is intelligent enough to realize all this thinking that he can harness, if not hijack, the grass-root movement for his own purposes. This is a wee-bit more intelligence than I can give credit for to the Chairman, who is a former academic himself. I find the thought surrealistic that Bernanke wants to use gold as the safety-valve through which he can release steam from an overheating deflation one day, and from an overheating inflation the next.

Be that as it may, the Brave New World of irredeemable currency sans the paper gold factory at Comex will be an entirely different world from what we have been used to for the past thirty-six years. I highlight the differences as I see them. This should be helpful in the long run, even if this backwardation is temporary and gold futures trading will return to normal, since permanent backwardation is ultimately unavoidable.

Item 1: Barrick and other gold producers that still have an open hedge book will go bankrupt.

Item 2: Other gold miners will, one after another, stop selling gold altogether, and go into hibernation.
Item 3: Junior gold mines will put off starting production indefinitely. They will consider their gold ore reserves in the ground a safer store of value than paper money in an insolvent bank.

Item 4: The closing of the gold window at the Comex will furnish an excuse for other issuers of paper gold including the bullion banks to declare bankruptcy fraudulently.

Item 5: GLD and other joint depositories of gold will be under enormous pressure to default and let the owners of the ETF shares hold the bag. Let them sue for the gold. They won't get it: their contracts give them no right to physical gold. They will get small change, in paper. The principals will cut up the gold pie among themselves. No crumbs will trickle down to shareholders.

Item 6: Even allocated and segregated metal account gold is not safe. The temptation on the account providers to default will be irresistible. They are not going to release the gold until expressly ordered by the courts, and will make sure that no gold will be left by then.

Item 7: Central banks forfeit their gold under leases due to backwardation, causing an uproar of citizens whose patrimony was sequestered and dissipated in such an ignominious manner.

Item 8: The only market for gold will be the fragmented black markets in various countries each charging a price whatever the traffic can bear. All legal protection of the ownership of and trade in gold will be suspended. The Dark Age will descend on the trading world, just as it did when the Roman Empire collapsed.

Our present experiment with irredeemable currency can last only as long as it is able to support futures markets in gold. The declining gold basis is the hour glass: when it runs out and the last grain of sand drops, gold fever will bleed the futures markets of cash gold, and the days of the regime of irredeemable currency are numbered.

Previous episodes of experimentation lasted no more than 18 years, or half as long as the present one which has taken 36 years so far, a world record. Of course, none of the earlier episodes were supported by futures markets. Forewarned, forearmed. Get ready and move closer to the doors. When the curtain falls on the last contango in Washington, there will be panic and some people may get trampled to death at the exit.

Dear Mish, lower your gun. The topic of gold backwardation is not for you.


Monetary versus Non-monetary Commodities, April 25, 2006

The Last Contango in Washington, June 30, 2006

Red Alert: Gold Backwardation!!! December 4, 2008

Has the Curtain Fallen on the Last Contango in Washington? December 8, 2008

Saturday, October 15, 2011

End Game of Paper Currency

"We're in the endgame for paper currency."

—John Hathaway, manager of Tocqueville Gold Fund; speaker at the Casey/Sprott Summit When Money Dies

The US dollar is doomed; so are the euro and many other fiat currencies. At the sold-out Casey/Sprott Summit When Money Dies, more than 20 seasoned investment pros, economists, and freethinkers provided their insights and advice on the coming currency collapse and what you can do to protect your assets. - Financial Sense 15.10.2011

O Muslims, be prepared for the coming day of Riba paper money collapse ! Mint or buy your Dinar and Dirham before the kuffar gobled up the gold and silver supply !

Sunday, October 2, 2011

Bila Malaysia Beli Emas Jadi Rizab Negara ?

Apakah simpanan emas BN Malaysia lebih teruk dari Tajikistan, Mongolia dan Bolivia ?

Baca berita dibawah....

Market Nuggets:IMF Data Shows Central Banks Remain Net Buyers - Barclays

30 September 2011, 08:47 a.m.
By Kitco News

(Kitco News) - The latest International Monetary Fund statistics show that official sector net buying continues, says Barclays noting that Thailand bought 9.3 metric tons, Bolivia bought seven tons and Tajikistan bought 1.9 tons, to increase their gold reserves in August. Belarus, Mexico and Mongolia reduced holdings by a total of 1.4 tons, the bank says, citing Bloomberg. “Given sales by the Euro-system banks under the Central Bank Gold Agreement barely reached a ton under the second year which expired this week, the sector remains firm net buyers,” they say.