thm and jamabayala would be engrossed in the financial analysis I’d imagine! 😆
MELTDOWN
BY JOHN CANTLIE
War is on the increase, oil values on the decrease, and America is printing $85 billion dollars a month to stave off total collapse. Economic meltdown is approaching fast and the world needs a stable currency it can rely on. For 5,000 years, that currency has been gold.
There’s simply too much “money” in the world these days and as a consequence things won’t run quite so smoothly within the next few years. You can see it in every economy of nearly every country. The cost of living is going up as currencies become worth less and central banks try and inflate the problem away by printing ever more pieces of paper with numbers on them. It’s been tried dozens of times through history and it always fails. The dollar’s going down but this time it’s taking the world with it. Since 1971, the world’s financial system has been based on trust. Currencies are only worth something in exchange for goods because banks say they are – $5 bought you a coffee and a sandwich yesterday so you have faith that it will do so tomorrow. But as trust in financial matters between the public and governments drops to a low not seen since the 1930s, and with none of the world’s currencies tied to anything of true value, the reality of global economic meltdown draws ever closer.
As the world’s reserve currency and, until now, the sole currency of trade for oil, the US dollar forms around 60% of the value of all the currency on the planet, and over half those dollars reside outside the United States. So as the dollar collapses, it creates a domino effect and the rest come crashing down with it.
At such times, the world looks to something with a little more worth than paper to prop up its finances. That thing has to have intrinsic value, a value that does not climb or descend wildly at the pressing of a few buttons in a central bank. It could be a cow, a sack of grain, or a barrel of oil, but for the last thousands of years the most popular item of value has been gold.
There is a finite amount, so it will never lose its value, banks can’t just print more of it when they choose, and it is worth what the market says it is, not what banks dictate. It is durable, you can exchange it for goods, and it’s worth as much or more today as it was thousands of years ago. Now that’s real money. It’s amazing to think that a lump of gold that may have been used for trade thousands of years ago is still in circulation. It may have been melted down and be part of a bullion bar or it may be worn around someone’s neck, but it’s still around. Try that with a piece of paper.
WHY ARE WE TALKING ABOUT MONEY?
Last month the Islamic State announced plans to mint their own range of gold dinars and silver dirhams in a move to separate themselves from dollar-linked fiat currencies and to establish their own money, a currency that has intrinsic value.
Any country needs its own currency and a move by the Islamic State to gold dinars would be a smart one in today’s turbulent markets. Financial website Quartz wrote, “The gold dinar taps into a deep history of Islamic coinage that stretches back almost to the time of Muhammad himself. The Islamic dinar appeared in 696 AD, when the Umayyad empire – based in Damascus – stretched from the Iberian peninsula to the Indus River in South Asia.”
And the value of gold is soaring. In 2006, I possessed a 1 kg bar of gold that was worth, at the
time, around $17,000. Sadly it wasn’t mine; a bullion dealer loaned it to me for an article. Staff from all over the building heard about it and would come to ogle over its beauty. Pure gold makes people go a bit strange like that. But if I’d had the money to buy it, that same bar would be worth over $60,000 today.
As they move to expand the Caliphate, it would ……..and so on and so on….
