When the crisis hit Indonesia in 1998, when I was one of his victims. As directors of a public company, I have investments in shares and deposits. I Collect the deposit amount of toil for years trimmed down to just a quarter of its value in just a few months of the crisis.
Investment in stocks even worse, because in addition to its value in the rupiah fall. IDR himself lived a quarter of the amount before the crisis. Punch repeatedly during this crisis will consume most of my investments are up since the beginning of his career.
Alhamdulillah I am grateful to the help of Allah facilitated to understand the financial phenomenon around us, so that when the crisis is over ten years later (2008) - I do not need to be a victim again.
Indeed it is not difficult to understand what is happening with money-based financial system of this paper, the data scattered in various reliable sources. The graph above example, I take and process data from Pacific Exchange Services and Kitco.
What we can see from the chart above, really?. From the statistics available - the level of human science - stating that the U.S. dollar would fall - because the last ten years has dipped sharply. If likened to an aircraft with an altitude of 100% (January 2000), the current height is 32% lived alone.
Other paper currency would not much different, much less amount that has a tendency worse than the U.S. Dollar.
With what we measure this?, With 'real money' that has fixed purchasing power of gold or Dinar (called the gold dinar is also weighing 25.4 grams, levels of 22-carat).We can only know the purchasing power of a currency rise or fall if there is a standard for comparison of all time, one standard of comparison is that gold and Dinar.
In the history of paper currency, it is only paper currency purchasing power increased significantly when there is a very severe depression. History of U.S. $ during the last century for example, only increase the purchasing power which means that when there was the great depression 1930's. In the era of relatively normal times, paper money steadily declining in value.
So what kind of crash that we need to anticipate the future?. Analysts disagree on this.
For those who estimate that the worldwide credit collapse will continue, then the deflation threat that needs to be aware. In a situation of deflation, liquidity is king. We could have been rich with real assets, liquidity if we are weak - then maybe we get caught up in real trouble.
Anticipating deflation can be done by maintaining our liquidity, but if we keep with the liquidity of paper money - when that happens it's not deflation, but inflation - then we would be stuck at the next problem.
When that happens is that inflation is too high, or a change from deflation to inflation stages are too fast - the liquidity of paper money that we can suddenly lose its value.
So what's our solution?. Gold Dinar or answer.
Dinars or gold is a real asset that is always easy to sell to cash in the period of deflation, though, and need not decrease the value / purchasing power in times of inflation out of control.
The advantage of gold is not even recognized by practitioners of the investment world as Morgan Stanley released a statement two days ago CNBC: "Gold looks to be the investment of significant upside Provides That area under the inflation-rebound scenario and the relative resilience in the deflation scenario, gold Should be one of the best hedges for investors ".
So ready for the next financial crash landing? prepare Dinar as a parachute and you float. Allaah knows best.
