Why 2012 Economic Condition Worsen?

Economic is worsen

Do you want to know why economic conditions nowadays is in ruin? What is the effort to stabilize again the condition of today's economic? What steps need to be taken? Okay larr... we discuss about it to get the feel what is going on today.

Fiat is Fire

You may ask why gold's price becoming more and more expensive. You first might want to know that we have two currency system today: fiat money, and gold. Actually, money (which is paper) is the first system human are using in history. Before money, we used to do barter with food, sheep, rice, service, or something like that.

What's wrong is that, now we got USD 61,000 billion and only 1,300 billion golds. That means, we have actually so many 'fake' money. Money that is not backed up by real gold value. In 1944-1971, we need an ounce troy of gold to print USD 35. That means, at that time, money really represents gold's value.

Now imagine. To print 1 USD, we only need 4 cents ($0.04). Let's play monopoly here. Said I want to invest for a property in KLCC worth USD 561 million. What I need is to print a piece of USD that costs 0.04 x 561 million = 22 million cents ($220,000). Haha... got it rite? We just need to pay USD 220,000 for USD 561,000,000. Fear it not :)

Stabilization

It maybe too late, but not so late. :D

Now, the effort has been taken. Robert Zoellick, the big boss of World Bank, is trying to make another "Bretton Woods". But it is not something easy to do. Because why? Because we need to start from zero.

There must be countries that willing to cheapen all-things price. And, there must be a country to risen all-things price. This steps taken to ensure we have equal amount of golds in central bank. This stabilization would impact the social behavior, affecting every country and its citizen.

And Why Gold Price Rise?

Because central bank need gold. It is obvious to see that as the progress being taken, the gold price will be more and more and more expensive. At this rate, fiat is money is fake and broken money. World will use again a system in which gold is the measurement to buy or sell something. This is world at the age back to 1500 when Umar ibn Khattab make use of Dinar (gold) and Dirham (silver) as currency.

Conclusion

So now, as a Malaysian, we can start to save our country by saving as much gold and silver as possible. What are you waiting for?