TED Conversations

Lindsay Newland Bowker

TEDCRED 50+

This conversation is closed.

The Gold Dinar: Threat To Value and Stability $US and $EU

There is a long and creditable history of discussion in the financial journals about the growing movement for all muslim countries to unite under one currency, the gold dinar and about how devsatating any change in the official currency for the price of oil from $US even to $EU would be for the U.S. economy and for its place in world. A switch from $US to gold dinar for the pricing of oil could literally bring the entire world banking system to its knees and knock the US out of the box.

In Octiber 2010 CEO Swiss Bank Trading Craig Smith tried to call attention to the growing threat and its very real threat of economic terroorism ..http://goldbasics.blogspot.com/2010/10/bin-laden-and-gold-dinar-economic.html. His comments on CNBC's Morning Call.

John Perkins, a best selling author in economics, suggests that the threat of the dinar was really at the core of both the Iraq invasion and the Libyan invasion, something that seems more plausible once the arguement and evidence are examined. http://www.johnperkins.org/?p=1051

There is no question that there is a determined and continuing movement for the oil controling nations to adopt the gold dinar as their only currency of trade for all goods and services..including oil. And there seems to be liitle debate that wouldt shift the balance of power globally to OPEC nations. It would bring the rest of the world to its knees. The only debate is whether that can be oulled off and whether we can fend it off?

I am beginning to think the creation of a gold backed OPEC currency is inevitable and also the pricing of oil in this currency. Have we waited to long? Is it too late?
Can we fend it off?

I should point out that John Perkins , author of many NY TIMES Best Selling exposes on foreign aid, is a somewhat controversial figure . However the basic points of his article are supported by many any other reputable sources

Here is a link to"the gold dinar" plan http://www.taxfreegold.com/gold-dinar.ht

Share:
  • thumb
    May 7 2011: here is another article, dated today, that commenting that Qadhaffi'ss, & Husseins move to adopt the gold dinar, an idea orifinated by Bin Laden, was at the core of both invasions http://www.thedailybell.com/2226/Real-Cause-for-Gaddafis-Expulsion-Wanted-Gold-Currency.html
  • Comment deleted

    • thumb
      May 1 2011: Hi Richard..thanks for turning up....after all you got me going on all this..Yes exactly..in essence it seems that our entire military budget in effect supports our struggling economy..or tries to at the same time it is costing us more than we can possibly afford or ever pay for. I feel like Alice at the Madhatter's Tea Party. I thought I was pretty sophisticated on things to do with banking and economics but this just knowcked me off my feet. ( I still haven't planted my sunflowers....)
  • thumb
    May 1 2011: Just to provide a bit more background...the issue here is the impact on global financial markets and the balance of power if any of the major oil producing nations adopted their own gold back currency and made that the only currency in which sales of their oil could be settled. There has been a long term movement amongst many muslim nations to unify their currency.under the gold dinar. Although debunked by the Guardian and others as not a real threat as a currency based on actual gold coin is infeasible..I am sure we do remember that $US was once gold backed. Do we presume that OPEC nations actually planned to trade in gold coin? What Qadhaffi was trying to put in place was a coalition of African nations united under the gold dinar, (whether in coin or paper backed by gold is unclear) and to bring other OPEC nations under that same currency with an agreement to price oil in the gold dinar.. And that would pretty much be it for the U.S..I urge all commenters to do a little research on their own before commenting..at least read John Perkins article which lays out the connections of the currency switch to the U.S. economy. Thgis is not mere meme or chicken little stuff or rank speculation.This is actually hapening and the only strategy we have in place is what we are doing in Libya..what we did in Iraq..
  • thumb
    May 1 2011: what difference does it make really? is there anyone on this planet, pastor terry jones aside, who believes the US wages wars on principle? one occasion more or less, should we care?
    • thumb
      May 1 2011: I think, Krisztian, if you read the link and followed the thread you would see why we should care..this isn't about whether the US wages war on principle or tells the truth about it. This is about an actual threat to the US economy against which we may have no defense. Even a switch in the oil pricing currency from $US to $EU would be devastating but any major oil supplying anation or worse group of nations who decided to sell there only in their own non $US non $EU currency would basically bring the world banking system to its knees and create a major shift in global economic power .. As you can see already, wherever in the world you are, we have almost no control right now on the price of oil. If oil producing countries create there own currency or adopt the gold dinar,a long term movement in all muslim nations..we would paying 80% of our incomes for food..the dollar would be that suppressed.
      • thumb
        May 1 2011: i see. from your opening lines, i wrongly thought that you try to expose the true nature of the involvement. but actually you say that the war will not save the US from the doom that comes.

        i might agree with that in general. i don't agree with the details though. the price of oil is not dependent on the currency producers use. they can rise oil prices and use the dollar. or they can switch to a gold backed currency, and keep oil prices at current level (falling if counted in their currency). it is independent. the oil prices are determined by the market, and sadly, politics.

        creating a strong currency has effects though, even if in a somewhat different way. currently, the dollar is the reserve currency, and thus large amounts are stored all around the world. that makes increasing the money supply a very good move, since it makes the united states that much richer. but if another similarly strong currency gains ground, the market for the dollar can shrink, and any changes to the money supply will devaluate it much more quickly. virtually preventing the FED from continuing with its current policies. that would be the end of the US empire as we know today.
        • thumb
          May 1 2011: Hi Kriztian..agreed except on this"i might agree with that in general. i don't agree with the details though. the price of oil is not dependent on the currency producers use. they can rise oil prices and use the dollar. or they can switch to a gold backed currency, and keep oil prices at current level (falling if counted in their currency). it is independent. the oil prices are determined by the market, and sadly, politics."I

          First oil prices do not follow any normal supply demand relationship..the OPEC game ( and they totally determine world oil prices through how much oil they realease) is to keep the price as high as possible until people stop buying oil.. ( Lots of inks and data on this at by TED converstaion on a buyer's cartel)

          Also, it matters CRITICALLY to the US and the $Us that oil continue to be currency for the price of oil. At the moment the lo $ is actually serving to keep a lid on the pricehere in the U.S. and helps the dollar against its weakened value world wide. A switch to valuation in gold dinar will send the dollar way down and automatically increase the cost in $ for oil.. Much on this..going back to 2004 or so when there was a big move to switch the currency for pricing of oil from $US to $EU caused some panic. All very well documented if you care to look into it further. As far as I can see, having done quite a bit of reserach on this, and with some footing on this turf having been a bank regulator for 10 years (served on NYS Banking Board), there is no disagreement that any move to create a gold dinar based currency in oil rich nations would be an absolute economic disaster for the U.S. Some have dismissed the threat imagining they would actually used coin..I guess those folk forgot the $US paper currency was once backed by gold.