People in Indonesia have been using an alternate money in the gold dinar and silver dirham as a response to the devaluation of their currency that began in the late nineties. This is a clip from a dutch film : www.youtube.com A Guardian article also discusses this phenomena which is taking root in the Islamic world as the Malaysian government considers allowing people to use a gold dinar as an alternate currency. www.guardian.co.uk “Will the gold dinar thwart capitalism?” um. . . actually that is what true free market capitalism is based on, commodity money. The global economy is NOT a capitalist economy in the free market sense of the word and hasn’t been so for a century at least!! Mercantilism or corporatism more appropriately describe the USA today along with other nations of the global economy. gold, silver, gold dinar, silver dirham, Indonesia, fiat money, central banking, federal reserve, gold and silver, dinar, dirham, inflation, Marc Faber, Peter Schiff, Mises, Rothbard,
Karina Ulrich
Awesome video! I love that you clear out the misconception of free market capitalism and also love that last a bit that that group of Muslims are at least doing something about the problem of devalued currency and? the capacity for a smaller group of people to use the current monetary system to engage in massive legalized theft of the wealth of the masses.
Dude, you are mistaken! Dinar Dirham will be used under Islamic economy sharia Law where the zakat (give to the poor) is a must, where hoarding wealth more than we deserved is prohibited, where usury is a big sin and prohibited With Islamic economy sharia law but u still can be? rich on some level, the society will be lifted up and no one left behind, no Bill Gates or no king Abdullah, Islamic economy is not like socialism or capitalism!
02:23 mate, in? Indonesia if you tear a paper money to 2 pieces and then you stick it together again with Sellotape then it absolutely worth again as a normal money and even to save it in the banks
I dont know how it be in USA but it Indonesia it does and yes its magic..
Reason? 4 attack on Libya?Gaddafi
1 Criticizing US 4 Afghan invasion in UN, saying “Taliban is not my enemy” & calling Security Council a Terrorism Council. NO
2 Insisting on a mutual Arab Nuclear program in the Arab leauge conference. NO
3 Killing of civilians by Gaddafi forces. NO
4 Calling 4 Jihad against Swiss bcoz of minerats ban. NO
5 Accused Israel 4 killing JFK. NO
6 Gaddafi wants Gold in return 4 Oil. YES
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i thought i’d? listen to something smart from you but it’s not. It’s just a support for the word ‘capitalism’.
Global demand for oil has fallen significantly since the peak in 2008. The ability of these countries to produce oil has NOT changed. Yet the price of oil is almost as high as the 2008 high. So lets do a simple calculation… price up, demand down, supply = ?? And don’t choke this up to inflation, the price of oil has increased in all currencies (not? just the USD), and even if you account for inflation. This has happened despite lackluster demand.
@riffdex69 OPEC sets targets amounts based on “CLAIMED” reserves. The more reserves you claim the more you are “allowed” to sell. Are you that naive that you don’t think those numbers aren’t inflated? How do YOU have any clue what capacity they have?? There are many signs that many of them are ALREADY pumping at full capacity.
Talking about research.. Have you read Matthew Simmons book Twilight in the Desert? and do you understand the Saudi/USA relationship? I think YOU need to do more research
@justintempler
OPEC sets limits on how much oil member countries can produce. This affects the supply, and thus affects the price. You do realize that OPEC countries are NOT producing oil at maximum capacity right now? If they were,? supply would be higher and the price would be lower. I don’t have time to teach you basic economics, why don’t you do some research yourself?
@riffdex69 Oil prices are fixed? No they aren’t. Oil prices are bid up and down depending on supply and demand.
BTW..
Beginning May 18th the Hong Kong Mercantile Exchange is introducing a 32 troy ounce gold futures contracts (and remember Hong Kong is a Chinese territory) That means Asia is getting in to the gold market in a big way,? they will no longer have to rely on the American and European “cartels” LOL
OPEC likes oil and gold, and it seems like the Chinese like oil and gold too
@justintempler
You have to understand that OPEC is a cartel not as a result of capitalism, but? as a result of the combined power of middle-eastern governments. When these governments use their influence to fix prices, they corrupt the competitive nature of the free market. By mandating payment in gold, they are taking their cartel power a step further. And guess which governments continue get stronger as a result of this cartel power? I’ll give you a hint, it is not the US.
the same profit. However, if the prices are NOT fixed by the OPEC governments, and competitive pricing is allowed to occur, countries that sell lower will get more business and as a result that country will make more profit. I don’t see why it is so hard for you to understand. If you are trying to say that? OPEC is NOT a cartel, well then you are truly hopeless.
@justintempler
A lower price for oil would only lower profits for all OPEC countries, collectively. The problem is, they are not making decisions on a firm by firm basis, and they do not make decisions that maximize an individual country’s profits. Whether the countries have formed a cartel (they have) or not, there will be a certain demand for oil. If the prices are fixed (they are), it does not matter which country provides the oil, they will all be selling for the same and? thus making
@riffdex69 OPEC does NOT have monopolistic control over the oil market.
You are also confused, they are? not a manufacturer that has an unlimited supply of a oil to sell. Increasing production and selling at a lower price of a finite resource means less profit, not more.
Lastly, speaking of a profit-maximizing strategy, demanding payment in gold sounds much better than being paid in an ever depreciating fiat currency.
@justintempler
However, they are propped up by governments around the world, causing the cartel to flourish, rather than? dissolve. I will reiterate my main point, cartels are NOT the result of capitalism. If you think they are, you are truly misled.
@justintempler
I have already made it clear that OPECs power over America is the result of them being a? cartel and having monopolistic control over the oil market. If you are confused enough to believe that cartels are the result of capitalism, you obviously don’t understand economics. If these countries were playing by the rules of capitalism, they would practice profit-maximizing strategies, which would result in lower overall prices. (Yes lower prices can equate to higher profit).
@riffdex69 You don’t care about free markets. You want to force them to sell oil to you on terms? you deem acceptable, there’s nothing free market about that. You don’t have any legitimate claims on the property of other people. OPEC is not responsible for our addiction to oil. If you build your economy around a resource that you don’t own or have control over then you only have yourself to blame. I’m sure China and India will be more than willing to buy whatever we deem “too expensive”.
@justintempler
This is the ONLY legitimate power of the government, to protect the country from foreign threats. You call it being spoiled that we? are not going to let OPEC destroy us, how could you possibly be so confused?
@justintempler
You, sir, are the slow one. WHY a cartel was formed is of no consequence… if one exists it is the result of a corruption of? the competitive nature of the free market, and as a result CANNOT be misconstrued as free market capitalism. We have a right to build our economy around whatever we feel like it, and we have a right to protect our national interest. In this case, we are protecting our national interest by supporting capitalism and opposing cartels.
@riffdex69 You are slow, their formation of the cartel was a reaction to how we treated them in the past. Eisenhower depressed their market when he put limits on what we were allowed to buy from them. Don’t forget it was the US CIA that overthrew the government of Iran & installed the Shah. It’s THEIR oil, they can charge whatever price they want. Making an appeal to consequence doesn’t give you any claim to THEIR oil. It’s OUR own fault that we built an economy around SUVS & McMansions,?
@riffdex69
Typo: Should have? said, “bringing us back onto the gold standard…”
@justintempler
It’s funny how, rather than make a compelling argument, you simply call people crybabies when you disagree with them. As for Dwight Eisenhower, what is your point? When have I ever said that I support the policies of Eisenhower? I have also been arguing all along that our money should have? backing, bringing us off of the gold standard is quite different from putting our economy at the mercy of cartels as you propose.
@riffdex69 If you’re going to whine about cartels maybe you should start with Dwight? Eisenhower who imposed import quotas against Middle Eastern countries and Venezuela and played favorites with Mexico and Canada long before there was an OPEC. We are spoiled in the US, we consist of 5% of the world’s population but yet we consume 20% of it’s oil and pay for it with paper money that has absolutely no backing.
@justintempler
Cartels are the antithesis of the free market. A single force fixing the prices of a valuable product (a monopoly) does not occur naturally within the free market, but as a result of government intervention and political lobbying. You are preaching to the choir about ending the gold standard, I already told you I was opposed to that. As for acting like a spoiled brat, how exactly is it spoiled to not? want America’s future at the mercy of a corrupt cartel?
@riffdex69 “Does that sound like free market capitalism to you?”
If it’s their oil then yes it does. They can sell their oil and sell it for whatever they want. How do you think the Arabs felt in 1971 when Nixon closed the gold window? We had an oil embargo in? 1973. It’s time the US stopped acting like a spoiled brat and grew up.
@justintempler
Gaddafi was planning on using the OPEC cartel to mandate the oil be paid for with gold. Does that sound like free market capitalism? to you? Whether or not one thinks that we should be on the gold standard or not (I do), allowing that to happen would only cause the collapse of the US and western economic systems as our citizens would NOT be able to buy oil anymore. It would also cause the middle-eastern countries to gain even more power over our fragile economy.