Some time ago (few months?) Malaysia has suggested the Islamic nations to start using gold as currency in trading with other countries (not just Islamic countries) as gold is more stable than any other currency. So far it has not received any support ffrom any Islamic countries,even. Tell me why?
2006-10-12 19:57:14 · 4 answers · asked by IcarusLuvSun 1 in Politics & Government ➔ Other - Politics & Government
For the same reason that the Bush Administration wouldn't use the Gold Standard: it compromises monetary policy. And, incidentally, keeps them from raiding the Treasury and borrowing incessantly from China, and spending the proceeds on war and on enriching their cronies.
2006-10-12 20:01:14 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Even Iran doesn't like the idea of a currency backed in gold. Other than Malaysia and Saudi Arabia, no other country in the group has or will have sufficient gold reserves to make it a practical possibility.
Also, that would be taking the right to print currency away from politicians, since they couldn't print more money thatn they can back with gold reserves.
2006-10-16 21:21:51 · answer #2 · answered by F. Frederick Skitty 7 · 0⤊ 0⤋
While ideally sound, further studies are required to foresee any negative impact of the use of Gold as currency. The current financial market must be compromised, and it may lead to unnecessary difficulties. Considering the complexity and the possible hickcups in the process, many countries do not put priorities in this idea.
Arguably, the existing process has defects. However, these downsides are managable. The new process may compensate these defects with a new ones since there is no such thing as a perfect way of doing things. There is always pros and cons for everything.
2006-10-13 03:13:34 · answer #3 · answered by papadaddy 3 · 0⤊ 0⤋
because the feds say so. whats the matter .? are you not american. and dont you wont our money printed. and its only little peices of paper not worth a damn to spit on. if they backed there money with gold we might have to do the same. then money would be worth something, that would upset the whole balance of things the feds set up. they would have to get gold. and go back to the gold standard and silver. money is best left to the gods. to handle. I mean the feds.I am sure they know best. hahar ha har haha
2006-10-13 03:14:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋