Thursday, August 19, 2010

"The banking system is a crime"

When I was in Jakarta last year, the subject of gold came up in a conversation with a Muslim colleague. I asked him if it were easy to buy gold coin. He said yes. These weren't issued by the government but these coins are good and are guaranteed by the coiner. He said they were a very good investment. I never thought about it again because back then one coin the size of our one-peso coin costs around 1,000,000 rupiah (around 5000 pesos) and I couldnt afford it. It probably costs about 1,500,000 rupiah now. Little did I know that the minting of gold and silver coin and the use of these as currency are deeply rooted in Indonesia's Islamic culture.

As I remarked to another colleague there, looking at the vibrant economic activity in the capital, I said I thought that Indonesia could be the next economic miracle after China and India. The next video reinforces that as the Indonesians themselves, in a repudiation of their central bank, are slowly moving towards a commodity currency. Indonesians are beginning to realize that the present system of fiat currency is on the brink of collapse and they need to return to the sound economic principles rooted in Islam. It really is about freedom and justice.

See also this post on commodity currency.

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