Money - at the root of the problem (Part 2)

Fiat Money – paper money, which not backed by gold i.e no intrinsic value and created out of nothing by the power of an issuing authority. Let say to produce USD100 dollar note, 50 cents is the cost of printing and paper, so the remaining value of $99.50 is a gain to the currency issuer, called Seigniorage. So they will earn greater seigniorage by printing money in huge quantities, in term of Economic of Scale. Imagine in Bali, Indonesia which accepts USD as trading currency, US Government could buy almost the entire land with only basic capital of 50 cents of printing .
US Federal Reserve enjoys this huge seigniorage from the US dollar, since it is used as international trading around the globe. Resources of developing nation are being "stolen" by this system, through the magic of seigniorage. United States gets the benefit out of it, by obtaining oil from Saudi using newly created fiat money, just by printing it - obtain the oil with money created out of nothing, while Saudi struggle with hard work and huge investments.
US can create additional money for use outside the country without placing an inflation domestically, however if all of the dollar around the globe were to return to the US, they will surely be hyper inflationary. During the 1971 the US government began to printing more and more money for the Vietnam War, which is not allowed to be returned back to US, in order to avoid inflation - as what Japanese Imperial printed lots of  money, which resulted into inflation.

Money - at the root of the problem (Part 1)

You would have heard a Hadis which Nabi Muhammad S.A.W had prophesied 1400-year-ago “A time is certainly coming over mankind in which there will be nothing (left) which will be of use save a dinar and dirham.

The above Hadis has been indirectly being confirmed by a non-muslim, which in March 1997, long before he knew he would be honored with the Noble Prize, Robert Mundell had predicted that “Gold will be part of the international monetary in the twenty-first century”. An ingenuity person would not given a baseless statement, which he himself honored with Noble Prize in Economics.

Money-at the root of the problem, which the current monetary system is the main caused of the inflation and business cycle i.e Economic Crisis that are observed again and again. Problem lies in the nature of money after Richard Nixon had violated the Bretton Wood Agreement in 1971, which the era after, which is now, represented by Fiat Money(paper money without any gold back up) associated with Interest based economy - money created and accumulated in form of "riba" not by accumulate of their gold reserve according to Bretton Wood Agreement. Three things that we need to know in order to comprehend the phenomenon are :-

1. Fiat money
2. Fractional Reserve System
3. Interest

To be continued in part 2

Reference :  http://kijangemascoin.blogspot.com/2011/01/books-related-to-gold-investment.html

14 dirhams = 1/2 dinar as 18.03.2011

Sample from Dinar & Dirham Kelantan

What is e-dinar?

I came across on the internet based online transaction called e-dinar facility which is based in Labuan?...Labuan?? Malaysia!??...what on the earth nobody knows about it??
All this while we just know to buy and later on to pawn it....
This is the one Dr. Mahathir refering to, multilateral or bilateral trading which back up by gold and silver.

Some info I dug from http://www.e-dinar.com/

e-dinar is the name of an internet based electronic payment and exchange system that facilitates online transactions 100% backed by physical gold and silver.

e-dinar and e-dirham are the electronic units used within the e-dinar system.

Each e-dinar electronic unit corresponds to an exact, fixed weight of 4.25 grams of pure 24k gold. Each e-dirham corresponds to an exact, fixed weight of 3 grams of .999 silver. These units are infinitely divisible thus allowing large as well as very small transactions.

The physical gold and silver bullion backing e-dinar and e-dirham units are always equivalent or larger than all electronic e-dinar and e-dirham in circulation. The physical gold and silver bullion is held securely in internationally renowned bullion repositories.

Transactions are executed using e-dinar and e-dirham units and, as a rule, do not result in physical movement of gold or silver in the bullion repository. The exception are large transactions of at least 150'000.- USD where gold bars are physically moved between pallets.

Account holders always have the option to exchange their e-dinars an e-dirhams into any major national currency or redeem them and take physical possession of an equivalent amount of gold dinar and silver dirham.

Ar-Rahnu Agrobank Miri Beroperasi tidak lama lagi

Kebanyakan stok emas yang ada terutamanya PG's collectors di Miri, akan dipajak di Bintulu, umpama orang di Europe menyimpan emas di Switzerland. Kalau tak percaya, boleh refer Cik Rina, Agrobank Bintulu.
Stok datang,... Bintulu,... asal stok datang 190km driving untuk memajak emas ataupun bak kata orang Malaya, "merempit".....bila masa kita ni jadi Mat Rempit?.

Oleh sebab itu, banyak rungutan, traumatamanya Agent PG, melalui laman sosial seperti Facecook mencetuskan idea "Gerakan Mendesak AGRO BANK Mengadakan Operasi Ar-Rahnu di MIRI".
When there is a demand, there will be a supply in in term of service.

Pihak Agrobank Miri mengambil langkah positif untuk membuka perkhidmatan Ar-Rahnu untuk simpanan Bars & Coins, yang tidak disediakan oleh rival mereka. Antara info terkini adalah :-

• Operasi dijangka bermula pada minggu ini atau minggu depan.
• Had densimeter adalah hanya 200g, seperti di Bintulu.

Dengan ini, market segmentation Gold Bar 250g tidak sesuai bagi mereka yang berniat untuk memajak ke Agrobank, tetapi kepada collectors yang suka menyimpan emas dibawah bantal, 2-3 karung pun boleh beli, no problem.

Saya syorkan supaya "gold lover" di Miri, membuka safe deposit box di Public Bank, Jalan Cina, serendah RM120 setahun, kerana ia berdekatan dengan Agrobank yang mempunyai jarak perjalanan 1 minit sahaja seperti diagram di bawah. Ini memudahkan transaksi Ar-Rahnu dari segi jarak perjalanan kepada mereka yang berada di kasawan yang agak jauh dari city outskirt.

Jalan kaki 1 min saja

Public Gold seminar in Miri Sarawak 10 March 2011, Dynasty Hotel, 8.30pm

Last week we had a seminar about the skill to manipulate physical gold investment in Miri’s Dynasty Hotel, and believe it or not, full house participation.

The speaker was Mr. Mohd Fazli Ismail a.k.a Pokli(Pokli.com) which has vast experience in Gold investments and also have conducted various seminars in both East and West Malaysia and as gold merchandizer, he buys back gold from sellers and various parties as part of his strategy to increase his profits income, by selling it back to PG.

By the end of the seminar, myself and a friend of mine invited him for a drink to discuss further on some gold investments, and I would like to thank him for the golden infomation and guidance for a layman like me.

Dirham Kerajaan Negeri Kelantan

Saya membeli 1 dirham(RM20) dan 2 dirham(RM40) pada bulan Februari 2011.
Kenaikan mendadak pada hari ini iaitu 1 dirham(RM24) dan 2 dirham(RM48) disebabkan kenaikan harga Silver.
Beza antara dirham Kelantan dengan dirham keluaran lain, dirham Kelantan boleh digunakan untuk aktiviti jual beli di sesetengah jajahan Negeri Kelantan.
Nilai dan bentuk yang kecil ini mampu dimiliki oleh collectors dan kecairan(liquidity) agak memuaskan, berbanding silver berskala besar.

Kerajaan Negeri Perak Dinar & Dirham

Dinar & Dirham Kerajaan Negeri Perak telah dilancarkan.

p/s : Pandai Menteri Besar cari model Dinar