Malaysiakini Yoursay

Yoursay: A gold-pegged trading currency won’t be easy

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YOURSAY | ‘A common currency is only workable if all participating countries have same standards economically.’

Mahathir proposes common East Asia currency pegged to gold

Anonymous_1527925538: Good, Prime Minister Dr Mahathir Mohamad’s suggestion is different from that in the European Union, where a single common currency is used locally, and this caused problems to the countries unable to set their own currency rates when faced with a financial crisis.

However, before pegging the trading currency to gold, the world must first break the cartel currently suppressing gold prices using derivatives such as exchange-traded funds.

DEX: It is time to look into this possibility. Maybe China or Japan can lead the way.

Fairplayer: If China or Japan lead, Malaysia and the others will still operate at the mercy of those countries.

Fair Play: US President Donald Trump is pushing for a new US dollar to be fully backed by gold and make the Federal Reserve’s US dollar redundant over time.

Is Mahathir taking a leaf from the book of Trump?

China has been buying gold to stockpile their inventory of gold, and so is Russia. The price of gold will hit the roof from its current price.

Vgeorgemy: If creating a parallel currency to US dollar is easy as mentioned, we would have done it a long time ago.

The lack of acceptable efficient banking system to support the non-dollar currency is the main stumbling block.

We haven't had a single country in our midst other than the US, whose banking system possesses the ability to meet cash and collateral obligations without incurring substantial losses.

In short, we need an independent regulatory body on par with the US Federal Reserve with advanced banking institutions to replace the dollar.

We don’t have such banking regulatory institutions free from political directions with advanced banking institutions as the US.

All countries interfere in the direction of the banking regulations and institutions to satisfy domestic political demand. The US is an exception.

Enlighten: Economists have generally agreed that the gold standard led to the Great Depression during the 1930s. Hence, it was abandoned.

A common currency is only workable if all participating countries have same standards economically.

You can't even remove discrimination in Malaysia.

Majority must safeguard Minority Rights: Here we go again. Mahathir, instead of bending your back with these big dreams, why don't you do away with our 'apartheid' system of inequality?

Malaysia will bloom in no time and your sacred Malays will prosper too.

Big Data: Using gold for East Asia alone is ridiculous in a globalised world.

A return to the Bretton Woods system could work for the entire world, but without the US dollar as a key currency. Trade partners should use each other's currencies instead.

Mr Capitalist Freedom: Fiat money is very good for governments. It is money backed by the force of the state.

There is no need to have any gold reserves to back your currency. The government spends first then collect back in taxes.

There is very little chance of going back to gold-based currency.

Shovelnose: The current fiat money system is near the end of its acceptance term. Gold-backed currency is not ideal, but what is the alternative? Barter trade?

Anonymous 2043581479977820: How about using cryptocurrencies like Bitcoin? Will it work?

PM: M’sia looking to ‘spread out’ Lynas waste if Australia won’t take it back

Dai Jek Kong: Sources on the Internet say the reason US stopped its rare earth mining operations in California is because of the very dangerous radioactive waste. This had failed to comply with environmental safety standards.

If this is true, then instead of undoing a horrific outcome of a wrong committed by the previous administration, this new government continues to hold on to this toxic potato - exposing the folks living within the safety distance threshold of the radioactive waste.

And to make matters worse this "very dangerous radioactive waste" as defined by the US will be spread out to other areas.

The previous administration had committed a grave wrong and instead of undoing this wrong, the present administration now decides to commit another wrong. Two wrongs don't make a right.

Kim Quek: What is there for Environment Minister Yeo Bee Yin to negotiate in Australia when the PM has already declared his decision to allow Lynas to carry on its operation irrespective of the outcome of Yeo’s negotiation?

What absurd logic is that to spread the poisonous waste all over the country when it is found to be unacceptable storing in its present location?

Since Malaysia has already decided that it is for its people’s best interests to disallow the continuation of this operation unless the objectionable waste is shipped out, it should stick to its gun. Let the operator solve its own problem.

Flip-flopping in the current fashion only makes a fool of ourselves, besides gambling with our people’s welfare.

Rick Teo: What a stupid decision and what a stupid solution to a serious environmental problem.

Money or investment should not be a factor in allowing Lynas to continue. The health and well-being of the people staying around the area are more important.

Mahathir does not know the environmental consequences of rare earth mining. Its residue is hazardous and that is the prime reason why many countries are not keen on this investment.

Only stupid politicians with no sense of what is happening are allowing such an investment in our country. It is plain stupid to say that spreading the toxic waste out would solve the problem.

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These comments are compiled to reflect the views of Malaysiakini subscribers on matters of public interest. Malaysiakini does not intend to represent these views as fact.

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