By: Trace Mayer, J.D.
The gold dinar and silver dirham markets are increasing in liquidity as the precious metals’ market share in ordinary daily transactions is increasing. This poses a mortal threat to the systemically and terminally wounded fiat currency franchises. The outcome of this fight over currency will play a vital role in determining the degree of human rights, civil liberties and individual freedom over the coming decades.
GROUND ZERO EMPIRE ADVERTISING
There has been a considerable amount of distraction about the mosque to be built around Ground Zero. Without getting too deep into that issue I think it is important to review why Islam poses a significant threat to the West and it is not for the obvious reasons.
For example, the Pan-Malaysian Islamic Party which has ruled the Kelantan state in Malaysia since 1990 has begun to officially encourage the use of gold dinars and silver dirhams in ordinary daily transactions and has plans to pay willing government employees in gold or silver. This issue has even bubbled up to the national level where Prime Minister Datuk Seri Najib Tun Razak responded, ”Only Bank Negara Malaysia (BNM) can issue currency that is legal tender”.
Legal tender or forced tender is an offered payment that, by law, cannot be refused in settlement of a debt, and have the debt remain in force. In this case, the Kelantan government is encouraging but not requiring or forcing the use of gold dinars and silver dirhams as payment that cannot be refused. That is mainly because individuals do not need to be forced to accept gold or silver because they have intrinsic value and are extremely liquid. But who knows, maybe the next batch of terrorist activity from the Jonas Brothers will be traced to Kelantan?
GOLD DINAR AND SILVER DIRHAM
But Malaysia is not the only country where individuals are beginning to return to the use of gold and silver as currency for ordinary daily transactions.
Although the humble Indonesian does not possess four degrees from Harvard like lawyer and monetary expert Dr. Edwin Vieira they have come to the same conclusions based on sound monetary science and economic theory about the unsustainability of the current banking, finance and monetary system, the role gold and silver play as a currency alternative and the either/or outcome the choice of currency poses for individual freedoms.
As Dr. Vieira summarized, “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.”
Like the digital gold currency, GoldMoney, there exists the E-Dinar system. While I have neither used nor thoroughly researched E-Dinar, although it appears the Kelantan government has for several years, it is encouraging to see this type of monetary evolution taking place. Alternatives to the current system are available and beginning to be adopted. The more people buy gold silver or platinum and the faster their velocity becomes the higher value the market will place on them and the lower value on their competitors, intrinsically worthless colored coupons.
GOLD RELIGION AND GOVERNMENT
A few years ago I wrote about the nexus between gold, religion and government. The Koran declares that ‘Allah does not bless usury’ (Koran 2:276). Moses commanded the Israelites ‘Thou shalt not lend upon usury to thy brother’ (Deuteronomy 23:19-20). Ezekiel spoke on the moral and ethical decay associated with debt by declaring that those ‘given forth upon usury, and hath taken increase: shall he live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him’ (Ezekiel 18:13) The Proverbs suggest reasoning behind avoiding debt with ‘The rich ruleth over the poor, and the borrower is servant to the lender’ (Proverbs 22:7). The Apostle Paul commanded the Christians to ‘owe no man anything’ (Romans 13:8).
The Muslims, which oftentimes merge religion and government via Sharia law, appear to be commanded not to exact interest from others. There are additional monetary and banking prohibitions in Sharia law. The Jews and Christians appear commanded not to exact interest from fellow believers but may exact usury from others. They are counseled about the status of lenders being masters to borrowers. The Christians alone appear commanded to not be financially indebted. These major religions appear to have an aversion towards or complete rejection of debt in the monetary system.
THE IRRATIONAL AND LUDICROUS FRN$’S VALUE
There is no material difference, physically, between a FRN$1 and a FRN$20 bill. Even more problematic is the Undefinable Dollar which constitutes legal tender under US federal law. There is only a difference in perceived value by individual market participants and that perceived value is based on a fundamentally flawed premise: FRN$ are the risk-free asset.
This is flawed because the FRN$ is a fiat currency with no intrinsic value and therefore it can, like all other precedents in all of recorded history, become worthless and that is a very large risk. The lunatic thinking of Dollar Bugs is truly baffling.
The current worldwide currency, banking and financial system are completely broken and in the process of failing. The world is advancing towards using gold and silver as money and currency in ordinary daily transactions. This is in accordance with the teachings of three major religions. While their current velocity is extremely slow it is increasing. The faster it goes the higher their price in little colored coupons will rise.
As a result there will be a tremendous transfer of wealth from owners of evaporating paper to owners of physical gold and silver. This shift of wealth to the East from the West will be monumental. The numbers speak for themselves. If you want to benefit from this transfer of wealth then do not be a paper dollar bug and use gold and silver to starve the vampire squid.
DISCLOSURES: Long physical gold, silver and platinum with no position the problematic platinum, SLV or GLD ETFs.