GOLD DINAR 2

1. Allow me to explain my views on the use of gold dinar which I recommend.

2. I have used parts of gold dinar for international trade. I never suggest the gold dinar be used as a currency of any country for daily use.

3. Although gold prices more volatile than currencies, but gold values are also moving. While agreement Brettonwoods an ounce of gold worth $ 35 dollars. But now one ounce of gold worth U.S. $ 1.300. This means that the value of the dollar has fallen badly degan. But dollar for international trade is still in use.

4. If a gold coin is given a value of 1 Euro today, for example, and then increase the value of gold owners certainly would not use gold coins to shop with a value of one Euro. They will use a Euro note. Gold coins will be stored.

5. Eventually all the gold dinar issued by the authority will disappear from the market. Although many of which even the authority issuing the gold dinar would eventually run out of gold stored. This is what happens in the United States that at one time had 80 percent of the deposit (reserve) the gold of the world.

6. Other mechanisms will be used for international trade with the gold dinar. Reserve currencies need not be in the form of gold coins or bars, but as a gold brick values will follow the gold price in the market.

7. Payment for the merchandise will be made by the central bank after the calculated value of exports and imports between the two countries. If imports exceed exports, the country will pay with a credit note equivalent to the gold value of the excess of the value of imports minus exports.

8. If next month the country's exports exceed its imports in respect of the payment for this advantage can be made with a credit note last month.

9. In this way there is no need to pay in gold even though gold determines the value of goods traded. Only payments made to better or at least the total exports and imports of these countries each month or week. If the value of imports is equal to exports, the payment is not required. It became a barter trade (barter).

10. By using gold to determine the value of trade, the U.S. dollar is clearly not stable, not to be used again. Games by currency speculators will also cease.

By
Dr. Mahathir Mohamad