The Valuable Paper…
Recent economic downturn in United States that involved several large banks shutdown making me think if US so powerful and rich what about us the devoloping country. All the problem are related to the money, money matters. I once read about the scenarios in U.S said started after the 9/11. Among the caused are after 9/11 many banks give people easy credit to boost the economy but in the end it turns many bad debt happen.
Just thinking if U.S, a rich country but still have many people that can’t afford to pay loans and as a result a bank is bankrupt. Here we just here a person can be bankrupt but a bankrupt bank? Maybe in movies only. Even though Malaysia also still striving to catalyst it’s economy, reducing poverty problems and recent political issues, many of the people still can pay the loans. Yes, there is a trend of young bankrupt mainly because of credit card, but the amount of bankruptcies still can’t bankrupted a bank.
Still I think, we can just believed this environment of economy in this country we loved can last ever after. Just read the news papers or watch local news, the title like ‘Toys Factory Closed’ hundred unemployed without notice’, ‘Companies want to merge, VSS scheme to the staff’, .’Government to privatized some of its operation’, ‘Thousand of graduates seeking better jobs’, etc…etc. When the economy is good, many opportunities comes in and people can get a job. When they got a job and have a payslip, the banks comes in and now they are in the chain of debt. system.
After maybe 4-5 years of good old days, comes in the ‘Mr. Recession’ and Mr. Recession is not a nice guy. Plus with ‘Mr Fuel’ is not so helpful, some companies need to closed and people that in the first place get a job now jobless. Usually home loan is about 20 years and cars maybe 5 to 9 years. If the job just last for about 4-5 years the loans balance will be a big problem. In time like this put more money and savings is the best option for 4-5 years ahead. We don’t know how the recession will last. Some expert say that nation economy such as inflation and currency rate can affect our savings. So now savings also can be dangerous.
Investment Adviser magazine opened with the warning: “We are living in a state of fear: fear of the unseen terrorist; fear of Asian bird flu; fear of passive smoking and Sudan 1 food dye. But are we missing a silent assassin, one that can have a devastating effect on economic development, employment and wealth? As rapidly rising prices erode the net worth of assets, we need to avoid crippling levels of inflation at all costs.”
More about the article here.
What a world we live in, capitalism. Some one up there can manipulate anything and come out clean. We down here can just believed in newspaper. For all this problem we just hope for a good government and governance. Good government will protect peoples money with policies and intervention through National / Central Banks. Some countries that the government is at crisis or war like Iraq sometimes ago, Somalia – peoples there like to use currencies like U.S dollar when when their currencies is worthless.
Fancy of Islamic gold dinar? Gold said to be the most stable currencies and valuable compared to paper system that it’s value is virtual and determined by the nation economy. Paper is just paper, but gold is valuable minerals. The logic is if we buy gold from now, dig a hole in our backyards, buried it for another 20 years. In the future the value will sure sky high because gold is like oil. We can’ create it. How about we buried our $1,000,000 dollar notes for another 20 years. Maybe we can’t use it anymore due to new currency, economic problems or we are invaded by other countries thus using the country currency.
So should we savings in gold? Read here and here about the gold dinar.
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