The New Malaysian Liberty Dollar
November 10th, 2011
The web is awash with speculation that the real reason the US wanted Muammar Gaddafi dead was not his atrocities committed against his own people but his threat to the US dollar hegemony. In the months leading up to the US intervention in Libya, Gaddafi had been organizing African and Arab nations to adopt a new Islamic Gold Dinar to unseat the US dollar as the standard in the sale of oil. It leaves me wondering when the US intends to invade Malaysia.
In August 2010 the Islamic Party of Malaysia announced the launch of a gold dinar intended as an alternative currency in Kelantan, a state within the nation of Malaysia. Since then Perak announced that it will be the second Malaysian state to use the gold dinar and over 1,000 businesses have agreed to accept the coins. But it’s no international currency. Growth has been slow because the Malaysian federal government has opposed the move arguing that only the central bank has the authority to issue currency. And who can blame them. They’re probably just trying to avoid Gaddafi’s fate.
But what if the currency wasn’t issued by any state? What if it was a product of the free market?
This week Mynet Capital, an online precious metal trader in Kuala Lumpur, launched the “One World 10 Dirham” to be sold across 25 countries including Malaysia. Some are calling it “The Malaysian Liberty Dollar.” The silver dirham was chosen over the gold dinar to make it more affordable for middle income people. Mynet executive chairman, Terry Ghani said “It’s a tactical asset because you can capitalize on price appreciation… at the same time a strategic asset as a long-term wealth preservation.” Silver coins are more economical for middle income people because they can be bought in small portions and according to the customer’s capacity. In addition they are more mobile than property and less volatile than stocks and other commodities, making them an effective long-term investment and hedge against inflation.
Austrian Economists have long pointed out that inflation is not the rising of prices, but the decreasing buying power of money which results from an increase in the money supply. When currency has no commodity backing it there is no limit on the amount a central bank can print. No limit on inflation. The result is that the buying power of the new money is stolen from the buying power of the money already in circulation. The money in your pocket. It’s like pouring water into soup. It dilutes the soup.
The 10 dirham coin is 29.75g of pure silver, just a hair under a troy ounce. The obverse of the coin shows an intricate piece of Arabic calligraphy which reads, “Salamu Alaikum” or “Peace Be Upon You.” An interlinking geometric design is intended to convey a message of universal peace and harmony between all the diverse people of the world. The reverse is in English and reads, “One World – May Peace Be Upon Our Planet” and below it, “To Create, To Preserve and to Prosper.” Ghani said, “This is the world’s first dirham inscribed in English to propagate its knowledge and appreciation amongst the global non-Arab speaking community.”
So I wonder… if the US will work to topple foreign leaders like Gaddafi to protect the US Dollar hegemony, and we’ve seen the government attack domestic free market silver currencies like the Liberty Dollar, how will the US attack foreign free market silver currencies like the One World 10 Dirham?
