Fiat money ... Oh, how long you can stay ...?

It can not be denied again by anyone, fiat money is money that has no intrinsic value continues to decline in value over time. It's just that the majority of us do not realize just how bad such impairment. 

  

The majority of us be fooled by short-term view of where the value of paper currencies fluctuate as each other, sometimes up and sometimes down. This is true if we use reference is a fellow of paper money. 

  

The rule is a child weighing scales must have a fixed weight. If we want to weigh the cucumbers in the market for example, we can not weigh the scales of cantaloupe with a child - because the weight of both is uncertain. Children weighing scales must be certain and proven. 

  

Similarly, assessing the purchasing power of paper money; amount of money only has value relative to the currencies of U.S. $ for example - but the purchasing power of real or absolute values can not be determined by comparing the amount to U.S. $ - because they do not have an exact value and reliability. 

  

So what can we use to measure the value or purchasing power of paper money that accurate?. Or gold dinar was one of the most accurate answer and has been tested for thousands of years. 

  

Besides using the standard gauge and tested, measuring the value of the currency should also be made in sufficient time range, eg 50-10 years or even more. Why is that?, Because if the timeframe is used only short term - for example in a single year, people can be fooled and wrong decisions. 

  

Note the picture above as an example. Within one year, when measured with scales of gold even if (as a comparison of raw values) - then the volatility of the currency seems only natural. 

  

There is a currency whose value is higher than that of gold yen (up 18%); While the U.S. $ and Sing $ is relatively fixed (respectively 'only' dropped 1% and 5%).Meanwhile, the euro fell 11%, the rupiah fell 16% and the worst pound fell 27%. 

  

To take important decisions related to our long-term investment just as children's education expenses, the cost of building a house, medical expenses and pension funds - we have to use glasses purchasing power of money in the long term. 

  

Consider the graph in addition to illustrating the value of the purchasing power of fiat currencies, when measured by standard scales of gold or the value of the dinar in the time span of ten years. 

  

We can easily see in the chart that only in less than ten years (in 2009 we used the January data only weeks to 3), no-one any fiat currency that can survive to maintain the value of its purchasing power. 

  

U.S. $ which he mighty, within the time the purchasing power of gold bought live 32%, while the euro stayed 42%, 37% lived Yen, Sing $ to live 36%, 28% lived Poundsterling and our beloved currency Rupiah stay 21%! . 

  

When the rate of decline in the purchasing power of fiat money the last ten years is like a graph and the figures above, then anyone who can guarantee that the trend of the next 10 years will not run like this, or even worse to see the development of the global financial crisis last year?, Please You use your own assumptions. 

  

So what is the importance of these two graphs (for more detailed graph please click on the graph) on the management / financial planning and investment we all?. For short-term needs - one year or less for example, the use of fiat money can be still quite safe - if financial conditions nationally or globally walk without great turbulence. 

  

In contrast to the management / financial planning and medium to long term investment; Gold Dinar can maintain its purchasing power throughout the ages - is one obvious answer. Allaah knows best.

There's Only One Challenger U.S. Dollar: Gold (dinar) ...

"As a result of global scale recession, no country wants its currency to appreciate.Alternative for the U.S. Dollar in 2009 is not the currency of another country, but the 'old currency' that is gold. Precious Metals may appear as a hedge for investors suspicion of central bank behavior and the fear of inflation ... ". David Hales in his January 5, then in the Financial Times. 

  

This is not the first time I found the author of west objective of the currency. Thinkers on the Gold Anti-Trust Action Committee (Gata) has long expressed a similar view, Ter-wacanakan its Bretton Woods II by world leaders of G-20 can not be separated from the recognition that the real gold was money that was true. 

  

Unlike us who believe that real money (fair balance) is only gold and silver based on our religious beliefs, David Hales concluded that the replacement of gold is U.S. Dollars based on the current global financial conditions, as, among others, revealed in some of the following realities: 

  

· All the players of the world economy slipping into recession. Real GDP in America and in Europe will reach minus 1.5%, and Japan will be worse and could reach minus 2.5%. 

· Response from European countries (which actually has a strong potential successor currency to U.S. $ namely Euro), much slower than the American response in the form of economic stimulus. So currency can not be expected. 

· China are hit by this crisis, is not expected to intervene the market to raise its exchange rate. First because of their foreign exchange reserves began to decline, both to raise the exchange rate will reduce the competitiveness of its exports are now even this has been disrupted. 

· Japan's currency is still strong while the future will tend to be suppressed by their own government for the same reason that is because of falling exports and declining production capacity. 

· Traffic world trade will go down because of large importing countries experiencing recession. Not only Europe, America and Japan, but also that no less bad is South Korea, Taiwan and China. 

  

Americans still can be proud to have among the strongest currency-denominated other currencies weak. But this only happens during a real challenger - the gold / Dinar - not yet emerged. No wonder why their governments are always hostile to gold, to the extent that their own citizens who realize that they persecuted by his government - set up various organizations to fight it like Gata, FAME (Foundation of Advanced Monetary Education) etc.. 

  

For us Muslims, to us has been rumored about the destruction they are - but whether we are going to replace it? depends on our willingness to begin work for this. 

  

"He was the one who issued the unbelievers among the people of the Scriptures from their villages during the first expulsion time. You do not think that they would come out and they were convinced that their fortresses would defend them from the (punishment) Allah, and Allah brings to them (punishment) from the direction that they are not unexpected. And God threw fear into their hearts, they destroy their houses with their own hands and the hands of those who believe. So take it (the incident) to be a lesson, O men who have a view. "(Surah 59: 2) 

  

So God had destroyed the (economic) they are with their own hands, which is needed now is the emergence of the hands of the believers to replace it. If the hands of the believers who do not also appear immediately, then that would arise could be another crime in a new form. Allaah knows best.