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Kelantan Currency

Kelantan Gold Dinar

Kota Bharu Central Market

I have read with interest the Kelantan state government taking the first tentative steps to introduce the Gold Dinar and Silver Dirham as a legitimate currency. I have long been a fan of the so called 'barbarous relic' (gold) especially when compared to fiat currencies (paper money) like the US Dollar, the Euro or GB Pound Sterling.
Discussing gold without discussing the effects of fractional reserve banking practices over the last century is difficult, but it is also a very involved subject that has been analysed to death resulting in enough books being printed that would cover a forest the size of Kota Bharu. Hence I do not intend to devote too much detail to the banksters of the west.
In Europe they are currently calling this 'quantitative easing' but it is basically issuing more of the same currency that devalues the existing currency, if you print more pound notes the existing pound notes in circulation go down in value against other currencies.
Bank Negara (Malaysia national bank) have already made a statement saying that the Ringgit is the only legal tender for payment of goods and services in the country and it has the sole right under the law to issue currency in Malaysia.
Which brings me back to the minting of the Gold Dinar, many newspapers were reporting that the first batch of Dinar was 'oversubscribed' and they were planning to mint more to satisfy demand.
There is a possibility there was a degree of politicking in the issuance of the Dinar. I have neither the insight into the thought process behind the issuance of the Dinar or the will to engage in such a debate but there are however many economic factors at play here.
If Kelantan were given the right to issue the Dinar as legal tender then this pioneering policy may not be quite as straightforward as one would think.
But what of your average shopkeeper, restaurateur or newsagent? How could they tell the difference? Will traders accepting the Dinar be armed at the checkout with digital weighing scales, a magnet, gold/silver cleaning solution anda jewellers cloth?
How will Kelantan business owners keep abreast of fluctuations in the price of gold to the Ringgit? If your produce is valued for sale at RM180 (the equivalent of 1 Dinar) at the start of the month, it could be that 1 Dinar will be worth RM185 at the end of the months trading.
Kelantan would be modern day trailblazers and if the history of business is analysed it is usually the policy of pursuing groundbreaking business dreams that results in bankruptcy leaving others to learn the lessons from the pioneers and maybe pick up the pieces and turn the original idea into a success.
Which brings me back to our friends the banksters and their monopolies of fractional reserve banking. If Bank Negara were to officially authorise the Dinar as legal tender I believe the Malaysian Ringgit could become the target of unimaginable currency speculation in an effort to destabilise the economy.
The speculation on the gold market is another potential hazard that is controlled overseas, every month the COT report on the gold market always shows 4 or 5 major players who are 'short' on the $ value of gold in an effort to bring the price down. The rise in value of gold in recent years has never deterred these shorts with many commentators speculating that it is just an instrument to control the price of gold that is the enemy of the central banker, namely the federal reserve in the US.
Not many people realise that the federal reserve is actually a private bank yet it has the power to print US dollars and lend them out to be repaid with interest. The folly of the Woodrow Wilson US government in 1913 whereby allowing the federal reserve to control the US dollar has resonated to the detriment of the populace throughout the last century.
It reminds me of the famous quotation made by Nathan Mayer Rothschild the founder of the worlds mightiest banking dynasty in the nineteenth century:
"I care not what puppet is placed on the throne of England to rule the Empire, ... The man that controls Britain's money supply controls the British Empire. And I control the money supply".
I am still an avid supporter of gold as either a new currency or used as a gold standard backing a currency but I do not believe Malaysia is in such a position of economic strength that it can become a trailblazer and open itself up to the speculation of the worlds derivative markets and currency traders.
Further still Kelantan issuing Dinars as an investment is a fantastic idea, but to seriously think it will be allowed to be used as legal tender for the payment of goods and services is I believe just a pipe dream, for now. In the future, who knows?
We live in a technological age where it is easy to replicate successful goods and large institutions such as banks have sophisticated methods of checking the authenticity of gold bullion.
The East Coast Economic Region (ECER) is working hard promoting Kelantan business opportunities to investors. The Pasir Mas Halal Park that will concentrate on crops, poultry and beef-based products is provoking interest from potential middle east investors. Middle east investors are comfortable with idea of investing in Malaysia because of the similarities of culture and custom. There is also great potential to invest in both family orientated and shariah compliant tourism within Kelantan.
I must finish this article with a mention of the entrepreneurial ladies in Kelantan business who hold sway by running many of the market stalls operating in the state.
These economically savvy ladies have proven their acumen in Kelantan business over many decades and to this day can be seen holding their own in places such as the Kota Bharu central market.

Kelantan Business

I have always viewed gold as a vehicle for the storage of wealth compared to the constantly depreciating value of any paper currency through issuance of additional currency that dilutes its existing value.
The word 'oversubscribed' suggests to me that it could be possible many people buying the Dinar coins were investors keen to exchange paper money for an asset that will not depreciate over time.
Buluh Kubuh Bazaar
Kelantan Business
Kota Bharu Business
Kota Bharu Trade Centre