Gulf states approve monetary union plan

[Abel213]

Gulf states approve monetary union plan

(Edit) Fixed link: http://www.ft.com/cms/s/0/df61d688-8...0779fd18c.html

"Members of the Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, have been struggling to protect their dollar-pegged currencies from dramatic currency fluctuations."

Inflation- Increase in price of goods

Why does it happen?

Because currency is being printed.

Why is the currency being printed?

US has no money and needs to print currency to pay for obligations/bailouts.

What does that mean?

Dollars are worth less

Well so what?

For the average man, everything gets more expensive. Things double and triple in price.

Is there a modern day example of this?

In Zimbabwe it costs 10 million Zimbabwe dollars to buy a loaf of bread.

Why is the Gulf making a new currency?

Because the Gulf currencies are pegged to the dollar and that means they are losing money because dollars are becoming worthless.

What is the future?

I beg you to please watch this video~!!

http://www.youtube.com/watch?v=kqtAzRNhTTY&eurl=http://market-ticker.denninger.net/archives/P2.html

 

[TheHumbleWun]

Salaam,

A single GCC currency could be the start of a new Muslim currency system without depending on the U.S. dollar. With that in mind, the Islamic State of Iraq are also trying to rebuild the calipha....I think we'll inshallah begin to see changes and new transitions in Muslim countries.

Thanks for sharing the video.

 

[Abel213]

Salaam,

A single GCC currency could be the start of a new Muslim currency system without depending on the U.S. dollar. With that in mind, the Islamic State of Iraq are also trying to rebuild the calipha....I think we'll inshallah begin to see changes and new transitions in Muslim countries.

Thanks for sharing the video.

Riba(interest) destroys nations and economies. Allah warned us very severely about this.

Inshallah we do not make the same mistakes and the Khalifa returns soon.

 

[Abel213]

A few years ago, there was much talk about a gold Dinar, a gold coin to be used for currency in all Muslim countries. This would have brought back the gold standard. But the excitement seems to have died out. I think ultimately this should be the goal but gradual transition from the current riba-based economic system needs to be implemented so that people's lives won't be suddenly adversely affected.

BTW, brother Adel, the link you gave is incorrect . The right link is:
http://www.ft.com/cms/s/0/df61d688-84e7-11dd-b148-0000779fd18c.html

Wow, I didn't even realize that. Thanks bro! Fixed!