Gold as seen by Dr. Mahathir Mohammad

There are far too many comments and questions in my blog that I simply cannot respond to all. But I will try.

Pegging

The Bretton Woods System did not fail because the United States ran out of gold. It failed because Britain decided to devalue the pound. President Richard Nixon decided to go off the gold standard much later.

After that it was a free for all as currency traders fiddled with valueless paper money.

If we have a trading currency, it should be controlled by an international body unbeholden to the US or anyone else. Poor countries must be adequately represented.

Like all systems we need to study the pros and cons before we approve.

If during all these years we could use the US Dollar as a kind of standard, I don't see why we cannot use gold. Gold prices do fluctuate but the range is far less than with paper currency. Besides there will always be a demand for gold so that you will not lose too much if gold depreciates.

Ref: www.chedet.com

Former PM uses blog to needle government

Former Prime Minister Mohammed Mahathir of Malaysia is using his blog to criticize a leader he once support.

Copy paste the link below to your browser.

http://www.iht.com/articles/2008/10/26/asia/blogger.php